Norway to Scrap Customs Duties on 98% of Indian Imports in Landmark Trade Deal

Norway has announced that it will eliminate customs duties for almost 98% of imports from India under the framework of a recently signed free trade pact between India and the European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland, and Liechtenstein.

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A Major Result-Oriented Milestone

Norwegian Minister of Trade and Industry Jan Christian Vestre described the Trade and Economic Partnership Agreement (TEPA) as a major result-oriented milestone that would not only boost two-way trade but also promote a rules-based trading system.

Securing Zero Tariff on Almost All Norwegian Exports to India

Vestre highlighted that Norwegian businesses currently face high tariff barriers of up to 40% on certain goods exported to India. However, the new agreement secures zero tariff on almost all Norwegian exports to India, creating significant opportunities for Norwegian companies.

India: An Economic and Political Powerhouse

Vestre emphasized India's status as an economic and political powerhouse with an extraordinary economic growth rate, presenting numerous opportunities for Norwegian companies in the country.

Eliminating Customs Duties for Almost 98% of Imports from India

Norway will eliminate customs duties for almost 98% of imports from India, including all important goods and services, providing a great opportunity for Indian companies.

Completion of Ratification Process

The pact will come into force following the completion of the ratification process by the signatories.

Proposed USD 100 Billion Investment by EFTA Countries in India

When asked about the proposed USD 100 billion investment by the four EFTA countries in India over the next 15 years, Vestre clarified that it is a binding commitment to promote investment, with the goal of achieving USD 100 billion and one million jobs. However, it is up to private companies and businesses to achieve this goal.

Setting Up an Office in India to Coordinate Implementation

The EFTA bloc will establish an office in India to coordinate the implementation of the mega trade deal.

Reference to Human Rights in the TEPA

The TEPA includes a reference to human rights, reflecting Norway's commitment to incorporating human rights and international environmental conventions as part of the agreement.

Strengthening Ties Between India and the West

Vestre emphasized the importance of strengthening ties between India and the West amid geopolitical tensions, highlighting the agreement's role in elevating climate ambitions and ensuring workers' and women's rights.

Promoting Investments and Creating Jobs in India

The EFTA countries commit to promoting investments and creating more jobs in India. A designated office will be established in India to support Norwegian businesses in operating in the Indian market.

Opportunities for Trade and Investments in a Rapidly Growing Market

The agreement provides significant possibilities for trade and investments in India's rapidly growing market. Norwegian businesses can contribute to sustainable development through investments in renewable energy, health technology, green mobility, and seafood.

The elimination of customs duties for almost 98% of imports from India by Norway under the TEPA marks a significant milestone in trade relations between the two countries. The agreement is expected to boost two-way trade, promote a rules-based trading system, and create opportunities for businesses and workers in both India and Norway.