The 6th Session of the India-Ethiopia Joint Trade Committee (JTC) recently concluded in Addis Ababa, Ethiopia, bringing together officials from both countries to strengthen economic ties.
GS II: International Relations
Dimensions of the Article:
- India-Ethiopia Joint Technical Committee (JTC) Meeting Highlights
- India-Ethiopia Trade Relations
India-Ethiopia Joint Technical Committee (JTC) Meeting Highlights
Bilateral Collaboration on Payment Infrastructure
- Unified Payment Interface (UPI): India invited Ethiopia to collaborate on integrating UPI with Ethiopia’s Ethswitch.
- Ethswitch Platform: Ethswitch serves as a payment platform infrastructure in Ethiopia.
Local Currency Trade Transactions
- Currency Conservation: India urged Ethiopia to explore settling trade transactions in the local currency for mutual benefit.
- Enhanced Bilateral Trade: Aim to enhance bilateral trade and conserve foreign exchange reserves.
Key Sectors for Mutual Investments
- Diverse Investment Areas: Health and pharmaceuticals, automobiles, textiles, infrastructure projects, food, and agro-processing identified as key sectors for mutual investments.
- Diversification of Collaboration: Reflects a broad spectrum of collaborative opportunities.
Progress in Memorandum of Understanding (MoUs)
- Standardization and Quality Assurance: Ongoing discussions for MoUs in the field of standardization and quality assurance.
- Customs Procedure: Ongoing discussions for MoUs in the field of customs procedure.
- Commitment to Conclude Expeditiously: Both sides agreed to conclude these MoUs expeditiously.
India-Ethiopia Trade Relations
Concessional Credit and Investment
- Concessional Credit: India is a major source of long-term concessional credit to Ethiopia, exceeding USD 1 billion. The credit supports sectors like rural electrification, sugar industry, and railways.
- Foreign Investment: Indian companies rank among the top three foreign investors in Ethiopia, with existing investments totaling USD 5 billion.
Bilateral Trade Figures
- Bilateral Trade Volume: Bilateral trade between India and Ethiopia reached USD 642.59 million in the fiscal year 2022-23.
- Indian Export Dominance: India holds the position of the second-largest exporter to Ethiopia.
Economic Growth and Cooperation
- Ethiopian Economic Growth: Ethiopia’s economy experienced an estimated 6.4% growth in the fiscal year 2021-22.
- Key Sectors of Cooperation: Trade relations encompass sectors such as rural electrification, sugar industry, railways, and other areas of mutual interest.
Foreign Direct Investment (FDI)
- Indian FDI Presence: Indian companies’ substantial FDI presence in Ethiopia underscores the depth of economic engagement.
High-Level Diplomatic Exchanges
- Diplomatic Visits: India and Ethiopia have witnessed several high-level visits, including those by presidents, prime ministers, and ministers.
- Bilateral Engagement: The visits indicate a commitment to strengthen bilateral ties and explore new avenues for cooperation.