India-Norway talks focus on investments under TEPA

India and Norway discussed investment opportunities under the Trade and Economic Partnership Agreement (TEPA) in Mumbai, focusing on sectors like energy, maritime, and agriculture. EFTA nations pledged $100 billion in FDI over 15 years, which is linked to tariff reductions on exports to India. India offers tariff cuts on 82.7% of its lines, excluding sensitive sectors, while EFTA covers 92.2% of its lines. Despite these efforts, India’s trade deficit with EFTA remains high, with US$ 22 billion in imports compared to US$ 1.94 billion in exports in 2023–24.

India and Norway convened a high-level business roundtable in Mumbai to explore investment opportunities under the Trade and Economic Partnership Agreement (TEPA) signed in March 2024 between India and the European Free Trade Association (EFTA). The discussions focused on sectors such as logistics, supply chain, maritime, energy, connectivity, circular economy, food and agriculture, infrastructure, and technology.

CIM Shr. Piyush Goyal led the Indian delegation, while Norway’s Ambassador to India, May-Elin Stener, represented her country. Steiner highlighted Norway’s commitment to ratify TEPA by 2025, emphasizing renewable energy, maritime industries, and climate-focused initiatives as priority areas.

The TEPA includes a US$ 100 billion investment commitment from EFTA members—Norway, Switzerland, Iceland, and Liechtenstein—over 15 years, projected to create one million jobs in India. These investments, limited to foreign direct investment (FDI), are tied to tariff reductions on goods exported to India. Portfolio investments are excluded from the agreement. India retains the option to revoke tariff concessions through a mutual review if investments fail to materialize.

In return, EFTA has offered tariff reductions on 92.2% of its tariff lines, covering 99.6% of India’s exports, with complete market access for non-agricultural goods and concessions on processed agricultural products. India has reciprocated by offering lower duties on 82.7% of its tariff lines, covering 95.3% of EFTA’s exports. However, key sectors like dairy, soy, coal, and sensitive agricultural products remain excluded. Importantly, India’s effective duty on gold—representing over 80% of EFTA exports to India—remains unchanged.

India’s trade deficit with EFTA remains significant. In 2023–24, India exported goods worth US$ 1.94 billion to the bloc, a marginal increase of 0.8% year-on-year, while imports surged by 31% to US$ 22 billion. Switzerland alone accounted for US$ 21.2 billion of these imports, with gold and precious stones contributing US$ 18 billion. Further, The meeting also addressed India’s ongoing economic reforms and initiatives to enhance its business climate. Both sides discussed strategies to strengthen cross-border infrastructure and trade connectivity, reaffirming their commitment to deepen bilateral ties.