Ethiopia and India Trade Relations
Ethiopia and India have had an economic and trade relationship over 2,000 years, based on historical records. Trade between the two countries flourished during the ancient Axumite Empire (1st century AD), which is seen to be the origin of modern Ethiopia. Indian traders flocked to the ancient port of Adulis in the 6th Century AD trading silk and spices for gold and ivory. Today, India is one of Ethiopia biggest trading partners and second source of imports with a share of 14.3% of the whole imports, and also Ethiopia is the third largest Africa trade partner.
Bilateral trade between the two countries stood at US$ 2.8 billion in 2022, out of which India’s export to Ethiopia US$ 2.72 billion and imports were US$ 80 million in 2022. Based on Ethiopia importer data, primary and semi-finished iron and steel products, drugs and pharmaceuticals, machinery, instruments and sugar are among India’s major exports to Ethiopia. Were as; pulses, sesame, and oil seeds, precious and semi-precious stone, vegetables, leather and leather products and spices are primary export to India.
The two countries have diverse trade opportunities across various sectors. The main areas are agricultural commodities, industrial products, semi-precious stones and leather and leather products, as well as finished items and food preparations are significant opportunities for fostering bilateral trade between Ethiopia and India.
