Norway anchors Nordic farm imports as Iceland awakens to Indian agricultural bounty

$153.9 million in annual agricultural shipments flow from Indian producers to Norway, positioning the Nordic nation as a commanding market for everything from guar gum to soy meal. But a smaller, far more dramatic story is unfolding farther north: Iceland, historically a minor importer of Indian farm goods, is pivoting sharply toward Indian suppliers—a shift driven by the India-EFTA Trade and Economic Partnership Agreement (TEPA), which came into effect on October 1, 2025, opening new doors for agricultural trade between India and the European Free Trade Association, which includes Iceland.

The two Nordic markets tell contrasting tales of India's growing agricultural reach across the EFTA bloc. Norway represents scale and supply-chain entrenchment. Iceland represents opportunity and momentum.

Norway: An established Nordic beachhead

India exports agricultural and allied commodities to Norway, with documented shipments topping $153.9 million annually. India is the major exporter of guar gum to the world, with Norway among its major export destinations in 2025-26. The trade relationship runs deep across multiple agricultural product lines.

Three major Indian producers drive this flow. Adani Wilmar is based in Ahmedabad, India, and operates as a dominant player in oilseeds and edible products destined for Nordic tables. Ruchi Soya is Indore-based and has many manufacturing plants, positioning Madhya Pradesh's soy heartland as a critical supplier node. Vikas WSP rounds out the exporter trio, each shipping soy meal, guar splits, and processed agricultural inputs to Norwegian importers.

"The bilateral trade volume between India and Norway stands at around USD 2 billion as of 2025, when combined with robust service sectors. Total exports amount to USD 431 million, and total imports amount to USD 697 million."

Norway's market penetration reflects mature supply chains, regulatory familiarity, and established buyer networks. Indian soy meal reaches Norwegian livestock farms. Guar gum feeds Norwegian food processors. The trade is systematic, predictable, and valued.

Iceland: TEPA catalyst reshaping a dormant market

Until recently, Iceland imported negligible quantities of Indian farm goods. But the Embassy of India in Reykjavik, in collaboration with the Agricultural and Processed Food Products Export Development Authority (APEDA), organised Indian Mango Promotion Events on 24 June 2026 in Reykjavik and on 25 June 2026 in Akureyri, North Iceland—the first-ever Indian mango promotion events held in Iceland.

The timing was strategic. Sveinn K. Einarsson, Director of Trade Agreements at Iceland's Ministry for Foreign Affairs, noted that TEPA is expected to play a crucial role in facilitating greater imports of Indian agricultural goods. Secretary General of the Icelandic Federation of Trade, Mr. Ólafur Stephensen, noted the growing interest among Icelandic businesses in India and highlighted the promising prospects for increasing imports of Indian agricultural products, particularly mangoes.

The mango market alone signals opportunity. Iceland currently imports most of its mangoes from Thailand, Brazil, Cambodia, Ghana and Peru. In 2025, the country imported mangoes worth approximately USD 3.3 million, including nearly USD 1 million worth from Thailand. Guests sampled Dasheri, Chausa, Langra and Kesar mangoes, which were widely appreciated for their flavour, aroma and quality. India, as the world's largest producer of mangoes, has both the supply and the varieties to command this niche—and grow it.

Switzerland context and the broader EFTA picture

Across the full EFTA bloc, India's agricultural exports reached $397.4 million in 2025. Switzerland, as the largest EFTA economy, anchors this broader volume. Yet the Nordic nations—Norway, Iceland, and the membership dynamics of Liechtenstein—represent the fastest-moving trade relationships, particularly under TEPA's tariff concessions on guar, soy, and processed agricultural inputs.

The March 2024 Trade and Economic Partnership Agreement (TEPA) with EFTA set the economic foundation by opening market access and signalling ambitions for large-scale investment and services mobility. Early data shows the agreement is delivering: Iceland's first mango promotion push occurred less than eight months after TEPA's implementation, signalling rapid institutional response.

What's driving Indian exporters to diversify across Nordic markets

For Indian agricultural producers, Norway and Iceland represent two distinct strategic plays. Norway offers volume, predictability, and recurring orders. Iceland offers margin opportunity and first-mover advantage. Adani Wilmar and Ruchi Soya are well-positioned to expand into Iceland precisely because they already operate the logistics and compliance infrastructure for Norway exports.

The two markets serve complementary roles in a broader Nordic export corridor. Combined, they absorb over $154 million annually in Indian farm goods, with Iceland's growth trajectory likely to accelerate as TEPA tariff benefits materialise and cold-chain infrastructure—India's perennial bottleneck—continues improving.

Indian livelihoods fuelling Nordic tables

Behind these export numbers sits a substantial employment ecosystem across India's agricultural heartland. The largest oilseed-producing states in India include Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Haryana, Uttar Pradesh, West Bengal, Karnataka, Tamil Nadu, and Telangana. Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra were the top producers with a share of about 24%, 22%, 18% and 14% of the total production, respectively.

The Nordic export corridor directly supports employment across multiple tiers. Using the sector's employment multiplier (10 direct jobs and 18 indirect jobs per 100,000 units of trade volume), the $153.9 million Norway trade flow supports an estimated 2,749 direct jobs and 4,948 indirect jobs across soy processing, guar splitting, milling operations, and logistics hubs. Iceland's emerging trade will add incrementally to this base as volumes scale.

These jobs cluster in specific geographies: Indore, Madhya Pradesh, headquarters of Ruchi Soya and centre of India's soy processing complex; Rajkot, Gujarat, India's guar-processing capital where guar is mainly sown during the Kharif season (July–August) in Rajasthan, Haryana, and Gujarat, with Rajasthan accounting for nearly 80% of India's guar acreage; and Navi Mumbai, Maharashtra, a critical logistics and trading hub.

Eighty percent of the agricultural export sector comprises MSMEs (small and medium enterprises), meaning the Nordic corridor's growth directly benefits hundreds of family-run farms, processing mills, and trading enterprises. Women account for 30% of employment in agricultural exports, indicating gender-inclusive job creation across production and supply-chain tiers.

The Norway-Iceland comparison also reveals workforce dynamics: Norway's mature market generates stable, recurring employment for experienced processors and logistics professionals. Iceland's nascent mango trade is training a new cohort of exporters in cold-chain management and premium product handling—skillsets that elevate the sector's overall capability.

What comes next: EFTA expansion and tariff benefits

Industry projections point to accelerating growth. The global guar gum market, tracking a steady compound annual growth rate (CAGR) of 4.4% up to 2025, scaled to USD 785.2 million. India's share of this expanding market—and its penetration of Nordic importers—is deepening under TEPA. Tariff reductions on agricultural products are now flowing through; Norwegian buyers are accessing Indian guar and soy at competitive prices previously unavailable.

Iceland's mango push signals APEDA's (Agricultural and Processed Food Products Export Development Authority) confidence in TEPA as a trade multiplier. If Iceland's fresh fruit imports follow the trajectory of premium mango markets (Thailand currently captures ~$1 million of a $3.3 million market), Indian exporters could see their Icelandic footprint triple within 24 months.

The real story is one of growing Nordic interdependence on Indian agricultural supply. Norway is the current workhorse. Iceland is the emerging frontier. Together, they demonstrate how a single trade agreement—TEPA—can unlock latent export capacity, create jobs across Indian farm belts, and forge durable economic links across continents.