Commercial Brief

15 January 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 (goods and services) in 2022 was € 256.89 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

Upto November 2023

India’s Exports to Estonia

32.87

31.87

45.61

30.33

41.00

93.64

39.4

India’s Import from Estonia

57.75

86.44

54.19

64.77

97.80

123.85

72.7

Total Bilateral trade

90.62

118.31

99.80

95.10

138.80

217.49

112.1

Source: Statistics Estonia

5.      India was Estonia's 25th largest export partner. In 2022 the value of goods exported to India was €123.85 million and the value of goods imported from India was €93.64 million.
Major items of exports from India to Estonia include Mineral product (40.4%), Metals & Metal product (19.30%), Machinery & Mechanical equipment (12.20%), Chemical product (9.90%), Textiles & textile product (4.05%), Plastic & plastic product (3.79%), Optical measuring precision (1.88%), Stone, Plaster, Cement & similar material (1.45%), Herbal product (1.23%), Prepared food product (1.10%) etc.
Major items of imports from Estonia to India include Mineral product (31.50%), Paper pulp of wood (30.20%), Machinery & mechanical equipment (13.60%), Wood and wood products (10.60%), Metal product (6.24%), Optical measuring precision (3.41%), Means of transport (1.38%) etc.
During the current year (upto November, 2023) major items of imports from Estonia to India include woodpulp of wood or of other fibrous cellulosic material (29.9%), electrical equipment (26.9%), wood and articles of wood (13.6%), optical, measuring, precision instruments (8.73%), iron and steel (5.75%) and major items of exports from India to Estonia include electrical equipment (16.8%), mechanical appliances (12.5%), articles of iron and steel (11.1%), miscellaneous chemical products (7.16%), organic chemicals (6.94%).

Bilateral Trade in Services                                           (In EUR million)                                                                                             


Year

2017

2018

2019

2020

2021

2022

Upto September, 2023

India Imports from Estonia

10.0

8.4

14.6

7.7

15.60

19.50

17.9

India exports to Estonia

7.7

8.9

9.4

8.1

11.80

19.90

11.5

Total

17.7

17.3

24.0

15.8

27.40

39.40

29.4

Source: Statistics Estonia

Total Global Trade
6.      In 2022, Estonian exports of goods amounted to €21.3 Bln and total imports amounted to €24.5 Bln. the top exports of Estonia were electricity(€1.28 Bln), refined petroleum products(€1.06 Bln), oils and other products from coal tar(€1.04 Bln), communication and communication equipment(€878 Mln). The top export destinations were Finland(€3.1Bln), Latvia(€3Bln), Sweden(€1.95Bln), Lithuania(€1.3Bln) and Germany (€1.22 Bln).

In 2022, the top imports of Estonia were refined petroleum products(€1.93 billion), electricity(€1.42 Bln), passenger cars(€1.21 Bln), oils and other products from coal tar(€700 million) and oil waste from petroleum (€613 Mln). The top countries for imports were Finland(€3.95billion), Lithuania(€2.54Bln), Germany(€2.45Bln), Latvia(€2.4Bln) and Russia(€1.8 Bln).
Indian Investment in Estonia
7.      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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