Relations between India and Ethiopia have strengthened rapidly after the visit of Prime Minister Narendra Modi in December 2025. This has prepared a roadmap between the two countries in high priority areas in the next decade. This information was given in a report of foreign media.
According to an article in the Times of Oman, over the past several decades, India-Ethiopia trade relations have evolved into a multidimensional partnership that combines strong goods trade, significant Indian investment in Ethiopian industry and infrastructure, and a strong development cooperation framework underpinned by South-South solidarity.
Both countries see each other as gateways to wider regions (India to the African Continental Free Trade Area and Ethiopia to the Indian Ocean and Asian markets). This provides a strategic dimension to India-Ethiopia trade relations.
According to Indian official data, the total bilateral trade between the two countries in FY 2024-25 was about US$550.19 million, with India exporting goods worth US$476.81 million and importing goods worth US$73.38 million from Ethiopia. These figures highlight India’s strong presence in the Ethiopian market and the potential for growth in Ethiopia’s exports to India.
India’s major export items include pharmaceuticals and medical products, iron and steel, machinery and transport equipment, vehicles and auto parts, electrical and engineering goods, chemicals, plastics and consumer products. These figures confirm India’s role as a major supplier of essential industrial and consumer goods to the Ethiopian economy.
On the other hand, India imports pulses, oilseeds, spices, leather and leather products, linseed yarn and selected minerals or semi-precious stones from Ethiopia.
Apart from trade, India has emerged as one of the most important foreign investors in Ethiopia. Various estimates show that Indian companies rank among the top three foreign investors, with approved investments valued at around US$5 billion.
The article states that Ethiopia is one of the largest African countries to receive Indian lines of credit, with approved credit lines of over US$1 billion. These loans have been used to fund strategic projects such as sugar production, power transmission, railways and industrial infrastructure.
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