Prime Minister Narendra Modi’s trip to Ethiopia in December 2025 marked a significant diplomatic milestone, elevating the ties between the two nations to a ‘Strategic Partnership’ and setting a clear roadmap for enhanced engagement over the next decade.
The trade relations between India and Ethiopia have evolved into a comprehensive partnership over the years, encompassing robust merchandise trade, substantial Indian investments in Ethiopian industry and infrastructure, and a strong development cooperation framework rooted in South-South solidarity.
Both countries consider each other as gateways to broader regions, with India connecting to the African Continental Free Trade Area and Ethiopia serving as a link to the Indian Ocean and Asian markets, adding a strategic dimension to their commercial relationship.
In the fiscal year 2024–25, data from Indian official sources revealed a total bilateral trade volume of approximately 550.19 million US dollars, with India exporting goods worth 476.81 million US dollars to Ethiopia and importing commodities valued at 73.38 million US dollars. These figures underscore India’s significant presence in the Ethiopian market and the potential for expanding Ethiopian exports to India.
India stands as one of Ethiopia’s key trading partners, emphasizing the resilience of the economic ties between the two nations. Indian exports to Ethiopia comprise a diverse range of products, including pharmaceuticals, iron and steel, machinery, vehicles, chemicals, plastics, and consumer goods, supporting Ethiopia’s industrialization goals and infrastructure development.
