India's view of the world · A factual referenceLast updated 12 May 2026 · Edition 04
COUNTRY RELATIONSHIP · ICELAND
India & Iceland
GEOTHERMAL COOPERATIONARCTIC COUNCILEFTA MEMBERCLEAN ENERGY EXPERTISE
India and Iceland maintain limited but constructive diplomatic relations since 1949, with the most substantive cooperation strand being geothermal energy, where Iceland's global expertise and India's large geothermal potential have created a natural area of engagement. Iceland is an Arctic Council member state — and India holds Observer status at the Arctic Council — providing a multilateral forum for regular interaction. Bilateral trade is negligible, but the knowledge partnership on clean energy and sustainable development gives the relationship a distinctive character.
COOPERATION AREAS
Where India and Iceland actually work together
4 active areas of cooperation, as of July 2026. Click any card for the full brief.
TRADE & INVESTMENT
By the numbers
Very small bilateral trade; approximate figures from UN Comtrade 2023. The India-EFTA TEPA (signed March 2024) may modestly increase trade flows from 2025 onwards.
~$50m
Total bilateral trade in goods
~$30m
India exports to country
~$20m
India imports from country
Trade trajectory · USD bn
$0.05bnin FY24 · click a bar to compare years
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1949, in 6 dates
CURRENT STATE
Where things stand, 2026
The India-Iceland relationship is cordial but very limited in scale. Geothermal energy cooperation and Arctic science are the most substantive bilateral strands. The India-EFTA TEPA signed in 2024 provides a new institutional framework for trade. Bilateral trade remains very small and is unlikely to grow significantly given Iceland's tiny economic size, but the knowledge partnership on clean energy gives the relationship an outsized significance relative to trade volumes.
SIGNALS TO WATCH
On track / positive momentum
In progress / worth watching
Stalled or facing headwinds
Not yet started / unclear
QUICK FACTS
CapitalReykjavik
Population370,000
RegionEurope
Diplomatic tiesSince 1949
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