International expansion and exports to India

India as a market

India is the world's fifth-largest economy. The country comprises 28 states and eight union territories, and the division of governance between central and regional authorities poses a major challenge for most multinational companies in India. Nevertheless, the country is moving in the right direction in the World Bank's 'Ease of Doing Business' ranking, thanks to recent reforms, improved access to electricity and streamlined construction permits.

Free trade agreement with India

Norway and the other EFTA countries signed a free trade agreement with India in March 2024. Following a phase-out period of up to 10 years, more than 90% of Norwegian exports to India will be tariff-free. India has traditionally imposed high tariffs, reaching up to 40% for some product categories. The free trade agreement gives the EFTA countries a unique position in India. With India's upcoming green transition, the agreement will be particularly relevant to companies in renewable energy, health technology, green mobility, industry and seafood. Norwegian seafood suppliers, for example, currently pay tariffs of 33% in India. Under the trade agreement, Norwegian salmon and mackerel will be tariff-free after five years.

The agreement also includes a chapter on sustainable trade and development. For the first time, India has entered into a free trade agreement that refers to workers' and women's rights. A separate chapter of the agreement also highlights cooperation on investment promotion. Please note that the agreement is still awaiting ratification by the Norwegian Parliament. Ratification means that the countries' legislative bodies approve the agreement, making it binding under international law. The phase-out schedules and tariff rates will vary by product and sector.

Read more about the free trade agreement with India

Opportunities for Norwegian companies in India

Healthcare

India's healthcare sector is one of the country's largest, both in terms of revenue and employment. Access to affordable, high-quality healthcare remains a challenge across much of India. Digital health education resources, electronic patient records, mobile healthcare, electronic health records, hospital information systems, technology-enabled healthcare, telemedicine and hospital management information systems are expected to grow significantly in the years ahead.

Information and communication technology

India is a preferred destination for companies looking to outsource their IT and back-office functions. The Indian government has launched the 'Digital India' programme to strengthen India as a digital society and knowledge economy. The programme could increase India's GDP by between USD 550 billion and USD 1 trillion. India offers significant opportunities for Norwegian companies in telemedicine, data storage, barcoding and RFID, electronic patient records, banking security software, educational applications, telecommunications, content development and design, 3D surveys and RFID technology.

Cybersecurity

India is one of the countries most exposed to cyberattacks worldwide. This challenging situation is driving growth in the cybersecurity market and creating business opportunities for product and service companies. Through constructive reforms, the government has made it easier to start a business in India. Together, these factors could establish India as a cybersecurity destination.

Artificial intelligence (AI)

India has seen renewed venture capital interest in AI. Artificial intelligence has the potential to increase India's annual growth rate by 1.3% by 2035. Promising areas for AI in India include healthcare, smart mobility, manufacturing, smart cities, energy, education and retail.

IoT and smart cities

India's Internet of Things (IoT) market represents a significant opportunity worth USD 15 billion by 2020. The Indian Government's Digital India programme is driving the development of the country's IoT ecosystem. The Government has established an IoT centre of excellence to serve as a platform for competence building and as an innovation accelerator for exploring advanced technologies. It will support public-sector initiatives that use IoT in areas such as water, energy, agriculture, crime prevention, security and health. An estimated 20% of India's smart city solutions will be IoT-based.

EdTech

India's EdTech sector can be divided into four segments: online education, offline education, smart classrooms with learning systems, and testing platforms. E-learning is the largest segment, with 1.6 million paying users. Reskilling, education and online certification account for the largest share, followed by language learning and test preparation. Active investors in the sector include Sequioa Capital, Blume Ventures, Lightspeed Venture Partners, Accel Partners and Unitus Seed Fund. The Indian government has also launched several initiatives to strengthen the sector. These include ePathshala, which provides access to digital textbooks, audio, video, maps, question banks and more; eBasta, which makes school textbooks available as e-books; Swayam which provides access to courses anytime, anywhere.