Commercial Brief
15 March 2024
Embassy of India
Tallinn
Commercial Brief
Estonia is a small Baltic country (45,228 sq km) with a population of 1.3 million which is very open to the outside world. It attracts foreign investors with its good business environment, location and cost-competitive labour. It is known for innovation and research, especially in information and communications technology (ICT). Estonia has made great strides in e-governance in which it is one of the most advanced countries in Europe. Its telecommunications sector is one of the most developed in Central and Eastern Europe. Estonia is keen to invite Indian companies to use Estonia as a transit route for trade and services with Nordic/Baltic countries.
Estonia has a strong information and communication technology (ICT) sector, partly due to investments in developing and expanding computer and network infrastructure. The country’s historic skills in automation and cyber security in combination with innovations in connected networks and data analytics have created a booming ICT ecosystem and startups.
2. Estonia opened a resident Embassy in New Delhi in February 2012 and Embassy of India was opened on December 28, 2021 at the Cd’A a.i. level in Tallinn.
3. During the first high level visit to Estonia in August 2019, Hon’ble Vice President Shri Venkaiah Naidu attended and addressed the Estonia-India Business Forum 2019 along with Hon’ble Prime Minister of Estonia. The accompanying business delegation of 18 Indian companies participated in the event. They also had B2B meetings with Estonian companies.
Bilateral Trade
4. Total bilateral trade in 2023 was € 161.8 million and was in Estonia’s favour. There are business opportunities for collaboration with Estonia in information technology, cyber security, block chain and related tech fields (where Estonia has good capabilities). Estonia has been trying to attract Indian IT companies to set up their data centres in Estonia. Indian companies are beginning to engage with Estonian companies, given the latter’s positioning as a gateway to EU, its prowess in cyber security and block chain. Another area which offers potential for collaboration is in green-tech including green-hydrogen and wind energy. The entire spectrum of genetics, molecular biology, biotechnology, life sciences etc. also provide possible avenues for cooperation.
Bilateral Trade in Goods (In EUR million)
Year |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
India’s Exports to Estonia |
32.87 |
31.87 |
45.61 |
30.33 |
41.00 |
93.64 |
42.00 |
India’s Import from Estonia |
57.75 |
86.44 |
54.19 |
64.77 |
97.80 |
123.85 |
79.80 |
Total Bilateral trade |
90.62 |
118.31 |
99.80 |
95.10 |
138.80 |
217.49 |
121.80 |
Source: Statistics Estonia
5. In 2023, India's imports from Estonia amounted to €79.8M. Major items of imports from Estonia to India include woodpulp (30.9%), electrical equipment (26.6%), wood and articles of wood (13.4%), optics, measuring, precision instruments (8.29%), iron and steel (5.86%).
6. In 2023, India's exports to Estonia amounted to €42M. Major items of exports from India to Estonia include electrical equipment (17.2%), mechanical appliances (12.3%), articles of iron or steel (11.2%), miscellaneous chemical products (7.03%), organic chemicals (6.55%).
Bilateral Trade in Services (In EUR million)
Year |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
India Imports from Estonia |
10.0 |
8.4 |
14.6 |
7.7 |
15.60 |
19.50 |
24.2 |
India exports to Estonia |
7.7 |
8.9 |
9.4 |
8.1 |
11.80 |
19.90 |
15.8 |
Total |
17.7 |
17.3 |
24.0 |
15.8 |
27.40 |
39.40 |
40 |
Source: Statistics Estonia
Total Global Trade
7. In 2023, Estonian exports of goods amounted to €18.2 Bln and total imports amounted to €21.2 Bln. the top exports of Estonia were electrical equipment (14.3%), wood and articles of wood (10.7%), mineral fuels (9.87%), mechanical appliances (9.33%), and vehicles (8.74%). The top export destinations of Estonia were Finland (€3.07B), Latvia (€2.16B), Sweden (€1.7B), Lithuania (€1.49B), and Germany (€1.2B).
8. In 2023, the top imports of Estonia were electrical equipment (13.2%), vehicles (12.4%), mineral fuels (11.7%), mechanical appliances (10.1%), and plastics and articles thereof (3.75%). The top countries for imports were Finland (€3.29B), Germany (€2.47B), Latvia (€2.32B), Lithuania (€2.18B), and Sweden (€1.63B).
Indian Investment in Estonia
9. There is limited Indian investment in Estonia. Reliance Industrial Investments and Holdings Ltd. (RIIHL), a wholly-owned unit of Reliance Industries, has set up a company in Estonia called Jio Estonia OÜ in November 2018. Indian FDI in Estonia stands at € 8.3 million (source: Bank of Estonia).
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