India-EU FTA to Boost Estonia’s Role as Trade Gateway for Indian Businesses

Estonia is set to become a gateway for Indian businesses into Northern Europe and the wider European Union once the India-EU Free Trade Agreement (FTA) comes into effect, Indian Ambassador to Estonia Ashish Sinha has said.

Speaking to PTI, Sinha said the I ndia-Estonia relationship is strengthening steadily, reflecting a broader trend where smaller European countries are becoming strategic entry points for Indian companies into the 27-member EU market. He added that existing trade already serves as a strong base for future expansion under the FTA.

He noted that the agreement will open wider opportunities for small and medium enterprises (SMEs) and deepen market access. Estonia, despite its population of about 1.3 million , offers key advantages through its EU membership, digital ecosystem and logistics infrastructure , making it a potential hub for Northern Europe .

A major pillar of cooperation is Estonia’s e-residency programme , with around 5,000 Indians enrolled and over 1,000 Indian-owned companies registered , enabling access to the European startup ecosystem.

Sinha highlighted strong potential in digital technologies, AI and software services , noting that Estonia leads in digital governance , while India has built large-scale digital public infrastructure , creating scope for mutual learning and innovation .

Around 2,000 Indians live and work in Estonia , mainly in tech and startups, many as entrepreneurs. He said Indian exports to Estonia have exceeded targets , with growing engagement in both technology and commodity sectors .

Diplomatic ties have deepened through visits, including Estonian President Alar Karis’ trip to India for an AI summit and meetings with Prime Minister Narendra Modi and President Droupadi Murmu .

India and Estonia established ties after 1991, with embassies in New Delhi (2011) and Tallinn (2021). Both sides share democratic values and support dialogue and diplomacy, particularly on the Russia-Ukraine conflict. The India-EU FTA will grant duty-free access to 93% of Indian exports , significantly expanding trade opportunities.