The 6th Session of India-Ethiopia Joint Trade Committee (JTC) was conducted in Addis Ababa, Ethiopia from 6-7 November, 2023.
Both India and Ethiopia agreed to expeditiously address all issues impeding bilateral trade and facilitate trade promotion between the two countries. The Indian side invited the Ethiopian side to collaborate on the Unified Payment Interface (UPI) of India with Ethswitch of Ethiopia.
Further, the Indian side also urged Ethiopia to explore the possibility of settlement of trade transactions in local currency which will help boost bilateral trade and conserve foreign exchange. The deliberations of the 6th Sessions of India-Ethiopia JTC were cordial and forward-looking, reflecting the traditionally friendly and special relations between the two countries.
Both sides undertook a detailed review of recent developments in bilateral trade and investment ties and noted that the relationship has a huge potential to be scaled up even further. To this effect, both sides identified several areas of focus for enhancing both bilateral trade as well as mutually beneficial investments.
These include health and pharmaceuticals, automobiles, textiles, infrastructure projects, food and agro processing. Both sides also reviewed the progress of ongoing discussions for Memorandum of Understanding (MoUs) in the field of Standardization & Quality assurance and Customs procedure and agreed to conclude them expeditiously. The Indian side also requested the Ethiopian side to expedite the early finalization of the Bilateral Investment Treaty.
India is the second largest trading partner for Ethiopia.
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India One of the largest foreign investors in Ethiopia. There are about 650 Indian companies in Ethiopia with licensed investment of over USD 5 billion of which about USD 3-4 billion is estimated to be on the ground. |
Key Takeaways
- The Federal Democratic Republic of Ethiopia is one of the fastest growing economies in the African region
- The country has an estimated growth of 6.4% in the year 2021-22.
- Bilateral trade between India and Ethiopia stood at USD 642.59 million in 2022-23.
- India is the second largest exporter to Ethiopia.
- Indian companies are among the top three foreign investors in Ethiopia with existing Indian investment of USD 5 billion of which, about USD 3-4 billion is estimated to be on the ground.
- Indian companies have invested in various sectors like agriculture and floriculture, engineering, plastics, manufacturing, cotton and textiles, water management, pharmaceuticals and healthcare.
