India-Norway Economic Relations: Opportunities for Sustainable Growth

India and Norway share a strong and multifaceted bilateral relationship, built on mutual respect, shared values of democracy, and a commitment to multilateralism. Over years, both the countries have expanded cooperation beyond traditional engagement to include areas such as trade and investments, climate change, maritime affairs, science and technology, and sustainable development. 

At a time when the global economy is facing headwinds from various quarters, new and emerging ties such as India-Norway are the new order. 

The total trade between India and Norway grew from USD 1.05 billion in 2019-20  to USD 1.20 billion in 2023-24 and stands at approximately USD 1 billion in 2024-25. While modest in scale, the relationship is defined by high value and considerable untapped potential.

Bilateral Trade

India’s exports to Norway in 2024-25, stood at USD 425 million, with primariy exports being agricultural and light commodities, while marine products and dairy products are the main items imported from Norway, with total imports being valued at USD 632.8 million. 

Between April 2000 and December 2024, the cumulative FDI from Norway reached approximately USD 880 million, contributing to 0.12% of India’s total FDI inflows. These investments have mainly focused on areas such as power generation, financial services, maritime industries, food processing, aquaculture, and information technology. 

The world’s largest sovereign wealth fund, Norway’s Government Pension Fund Global, that manages assets over USD 1 trillion holds stakes in 550 Indian companies,  reflecting long-term institutional confidence in India’s economy.

The India-EFTA Trade and Economic Partnership Agreement (TEPA), to which Norway is a signatory, has further structured the relationship, with climate and sustainable development identified as explicit thrust areas. Norway’s Pension Fund Global is a significant investor in India, with notable investments in sectors like renewable energy, ship building, and sub-sea drilling.

Clean Energy and Net-Zero Agenda 

India’s commitment to achieving the net zero by 2070 and reaching 500 GW of non-fossil energy capacity by 2030 creates a natural opening for Norway, a global leader in clean energy technology. The two countries can collaborate on adoption and acceleration of green and clean technologies, energy storage, green hydrogen, offshore wind, smart grids, and sustainable transportation. Both are members of the International Solar Alliance, offering a ready platform for greater dialogue, awareness and coordinated action on renewable energy. 

Under the India-Norway Green Partnership Initiative, cooperation has already extended to joint manufacturing of environment-friendly ships, as well as transitioning to green hydrogen and ammonia fuel cell propulsion vessels. Furthermore, Norwegian expertise in electrified port equipment and gas sensing system also holds direct relevance for India’s push toward greener port infrastructure. 

Maritime Affairs and the Blue Economy 

With long coastlines and significant maritime economies sustainable ocean management is a priority for both the nations. The India-Norway Task Force on Blue Economy and Joint Working Group on Environment provide institutional frameworks for this collaboration, focusing on cleaner technologies, sustainable fisheries, and maritime innovation. 

There is also practical infrastructure potential in port development and the establishment of direct shipping routes to deepen trade connectivity between the two countries. 

Manufacturing, Technology, and Innovation 

India’s Make in India and the Production Linked Incentive (PLI) scheme offer a compelling proposition for Norwegian firms. With Norway’s strong focus on transitioning towards a circular textile economy and India’s strengths in mechanical recycling and expertise in sorting and segregating waste, the two sides can enhance collaboration in sustainable textile manufacturing, including eco-friendly, smart, and organic fabrics.

Norwegian firms in the electronics and battery space establish manufacturing facilities in India through the PLI scheme, with a joint R&D centre facilitating technology transfer and workforce upskilling. 

As one of Europe’s most digitalised economies, Norway also brings expertise in cybersecurity and digital infrastructure, areas where collaboration with India’s expanding tech ecosystem could yield strong nuptial benefits. 

Skill Development and Human Capital 

With a median age of 28, India has one of the world’s youngest workforces. As the country advances toward its Viksit Bharat vision, skill development is a central priority. Norway has shown active interest in tapping into India’s skilled workforce by establishing talent exchange programs and fostering strategic collaboration. It also aims to leverage Indian talent to drive innovation and enhance its global competitiveness.

Electric Mobility 

Norway’s position as one of the world’s leading adopters of electric vehicles makes it both a market opportunity and a technology source for Indian EV companies. Indian Battery Electric Vehicle (BEV) companies could commence operations in the Norwegian market, source batteries from Norway suppliers, and progressively bring that expertise home- accelerating the development of a sustainable battery ecosystem in India.

Looking Ahead 

India and Norway may differ in size and geography, but they are converging on some of the most important topics: a commitment to clean energy transitions, responsible ocean management, and innovation-led growth. The institutional architecture with TEPA, the Green Partnership, and the Blue Economy Task Force is already in place. The task now is to move from frameworks to tangible projects and from stated to actual investments. As new orders of bilateral relations and cooperations take place, India and India-Norway is one worth paying close attention to.