Iceland–India relations
Encyclopedia
Indo-Icelandic relations refers to the bilateral relations between Iceland
and India
. Historically, Indo-Icelandic bilateral relations have been friendly but lacked substantive content. Iceland and India established diplomatic relations in 1972. At that time the Embassy of Iceland in London
was accredited to India and the Embassy of India in Oslo
, Norway
, was accredited to Iceland.
was accredited to India and the Embassy of India in Oslo
, Norway
, was accredited to Iceland. However, it was only after 2003 that the two countries have began close diplomatic and economic relationships. In 2003, President of Iceland
Ólafur Ragnar Grímsson
visited India on diplomatic mission. This was the first visit by an Icelandic President to India. During the visit, Iceland pledged support to New Delhi
's candidature for a permanent seat in the United Nation Security Council thus becoming the first Nordic
country to do so. This was followed by an official visit of President of India
A. P. J. Abdul Kalam to Iceland in May 2005. Following this a new embassy of Iceland was opened in New Delhi on 26 February 2006. Soon, an Indian Navy
team visited Iceland on friendly mission. Gunnar Pálsson is the ambassador of Iceland to India. India appointed S. Swaminathan as the first resident ambassador to Iceland in March 2008.
Iceland export
ed goods to India amounting to US $ 1.14 million
in 2005. The main item of export was Fish products
, mainly cod
, amounting to 77% of the total exports. Other items included industrial goods and medical products. India exported US $ 18.95 million worth of goods to Iceland in 2005. Consumer goods formed a major part; 52.5%, followed by raw materials at 37.8%. The trade between the two countries is still considered limited and with considerable growth potential. By 2007, total bilateral trade was $ 26.7 million of which Imports from India were US $ 25.1 million and exports to India were US $ 1.6 million.
Icelandic direct investments
in India grew multi-fold in 2005 to US $ 6.690 millions following closer economic ties.
s, interest, royalties and fees for technical services and stipulates that the rate of tax in the country where the income was made must not be higher than 10%. The two countries also signed a Memorandum of Understanding
(MoU) for co-operation in renewable energy
sector. Iceland and India cooperate in hydrogen cells and fuel cell
s under the forum of International Partnership for Hydrogen Economy (IPHE).
Both countries have also signed MoU for studies of anomalies ahead of earthquake
s, which has received considerable praise internationally. Two other agreements signed by both nations in 2007 are MoU on Sustainable Fisheries Development and Bilateral Investment Protection Agreement.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. Historically, Indo-Icelandic bilateral relations have been friendly but lacked substantive content. Iceland and India established diplomatic relations in 1972. At that time the Embassy of Iceland in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
was accredited to India and the Embassy of India in Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, was accredited to Iceland.
History
Iceland and India established diplomatic relations in 1972. The Embassy of Iceland in LondonLondon
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
was accredited to India and the Embassy of India in Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, was accredited to Iceland. However, it was only after 2003 that the two countries have began close diplomatic and economic relationships. In 2003, President of Iceland
President of Iceland
The President of Iceland is Iceland's elected head of state. The president is elected to a four-year term by universal adult suffrage and has limited powers. The president is not the head of government; the Prime Minister of Iceland is the head of government. There have been five presidents since...
Ólafur Ragnar Grímsson
Ólafur Ragnar Grímsson
Ólafur Ragnar Grímsson is the fifth and current President of Iceland. He has served as President since 1996; he was unopposed in 2000, re-elected for a third term in 2004, and re-elected unopposed for a fourth term in 2008. He is the longest-serving left-wing president in the history of...
visited India on diplomatic mission. This was the first visit by an Icelandic President to India. During the visit, Iceland pledged support to New Delhi
New Delhi
New Delhi is the capital city of India. It serves as the centre of the Government of India and the Government of the National Capital Territory of Delhi. New Delhi is situated within the metropolis of Delhi. It is one of the nine districts of Delhi Union Territory. The total area of the city is...
's candidature for a permanent seat in the United Nation Security Council thus becoming the first Nordic
Nordic countries
The Nordic countries make up a region in Northern Europe and the North Atlantic which consists of Denmark, Finland, Iceland, Norway and Sweden and their associated territories, the Faroe Islands, Greenland and Åland...
country to do so. This was followed by an official visit of President of India
President of India
The President of India is the head of state and first citizen of India, as well as the Supreme Commander of the Indian Armed Forces. President of India is also the formal head of all the three branches of Indian Democracy - Legislature, Executive and Judiciary...
A. P. J. Abdul Kalam to Iceland in May 2005. Following this a new embassy of Iceland was opened in New Delhi on 26 February 2006. Soon, an Indian Navy
Indian Navy
The Indian Navy is the naval branch of the armed forces of India. The President of India serves as the Commander-in-Chief of the Navy. The Chief of Naval Staff , usually a four-star officer in the rank of Admiral, commands the Navy...
team visited Iceland on friendly mission. Gunnar Pálsson is the ambassador of Iceland to India. India appointed S. Swaminathan as the first resident ambassador to Iceland in March 2008.
Economic ties
| Year | Export from Iceland to India | Export from India to Iceland |
|---|---|---|
| 2001 | 0.46 | 13.01 |
| 2002 | 0.47 | 27.19 |
| 2003 | 0.76 | 23.08 |
| 2004 | 0.89 | 16.1 |
| 2005 | 1.14 | 18.95 |
Iceland export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
ed goods to India amounting to US $ 1.14 million
Million
One million or one thousand thousand, is the natural number following 999,999 and preceding 1,000,001. The word is derived from the early Italian millione , from mille, "thousand", plus the augmentative suffix -one.In scientific notation, it is written as or just 106...
in 2005. The main item of export was Fish products
Fish products
Fish and fish products are consumed as food all over the world. With other seafoods, it provides the world's prime source of high-quality protein: 14–16 percent of the animal protein consumed worldwide...
, mainly cod
Cod
Cod is the common name for genus Gadus, belonging to the family Gadidae, and is also used in the common name for various other fishes. Cod is a popular food with a mild flavor, low fat content and a dense, flaky white flesh. Cod livers are processed to make cod liver oil, an important source of...
, amounting to 77% of the total exports. Other items included industrial goods and medical products. India exported US $ 18.95 million worth of goods to Iceland in 2005. Consumer goods formed a major part; 52.5%, followed by raw materials at 37.8%. The trade between the two countries is still considered limited and with considerable growth potential. By 2007, total bilateral trade was $ 26.7 million of which Imports from India were US $ 25.1 million and exports to India were US $ 1.6 million.
Icelandic direct investments
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
in India grew multi-fold in 2005 to US $ 6.690 millions following closer economic ties.
Agreements
India and Iceland signed a Double Taxation Avoidance Agreement to strengthen the ties of economic cooperation. The treaty covers the taxes of income, dividendDividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
s, interest, royalties and fees for technical services and stipulates that the rate of tax in the country where the income was made must not be higher than 10%. The two countries also signed a Memorandum of Understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
(MoU) for co-operation in renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
sector. Iceland and India cooperate in hydrogen cells and fuel cell
Fuel cell
A fuel cell is a device that converts the chemical energy from a fuel into electricity through a chemical reaction with oxygen or another oxidizing agent. Hydrogen is the most common fuel, but hydrocarbons such as natural gas and alcohols like methanol are sometimes used...
s under the forum of International Partnership for Hydrogen Economy (IPHE).
Both countries have also signed MoU for studies of anomalies ahead of earthquake
Earthquake
An earthquake is the result of a sudden release of energy in the Earth's crust that creates seismic waves. The seismicity, seismism or seismic activity of an area refers to the frequency, type and size of earthquakes experienced over a period of time...
s, which has received considerable praise internationally. Two other agreements signed by both nations in 2007 are MoU on Sustainable Fisheries Development and Bilateral Investment Protection Agreement.
See also
- Foreign relations of IndiaForeign relations of IndiaIndia has formal diplomatic relations with most nations, as the world's second most populous country and the world's most-populous democracy and recently has one of the fastest economic growth rates in the world...
- Foreign relations of IcelandForeign relations of IcelandIceland maintains diplomatic and commercial relations with practically all nations, but its ties with Norway and other Nordic states, Germany, with the US, and with the other NATO nations are particularly close...