Economic and Commercial Relations
Economic ties form the backbone of bilateral relations. In FY 2024–25, bilateral trade stood at US$ 550.19 million, with India enjoying a trade surplus. Ethiopia is a beneficiary under India’s Duty-Free Tariff Preference (DFTP) scheme for Least Developed Countries. Indian companies rank among the top three foreign investors in Ethiopia, with over 675 registered firms and investments exceeding US$ 6.5 billion, particularly in manufacturing, textiles, pharmaceuticals, ICT and agriculture. Indian investments have generated significant local employment, strengthening Ethiopia’s industrial base.
Indian Diaspora in Ethiopia
Indian presence since late 19th century
Major contribution in:
Education (teachers, faculty)
Industry and services
Indian community size: ~2,500
Around 150 Indian faculty currently teaching in Ethiopian institutions
Outcome of PM Modi’s Visit (Dec 2025)
| Category |
Details / Highlights |
| Civilian Honour |
PM Modi conferred Ethiopia’s highest civilian award: ‘Great Honor Nishan of Ethiopia’ |
| Bilateral Status |
India–Ethiopia ties elevated to Strategic Partnership |
| Acknowledgements by Ethiopia |
– Support in counter-terrorism
– Leadership in Global South initiatives
– AU’s inclusion in G20 (2023) |
| Areas of Enhanced Cooperation |
– Trade, investment, defence, innovation
– Health security, digital health, pharmaceuticals
– Agriculture, food security, agri-tech
– Digital Public Infrastructure (DPI)
– Mining, critical minerals, clean energy |
| Multilateral Cooperation |
– BRICS
– United Nations
– Global South platforms |
| Climate & Sustainability Cooperation |
– Climate change mitigation
– Renewable energy
– Disaster resilience |
| Cooperation through International Platforms |
– International Solar Alliance (ISA)
– Coalition for Disaster Resilient Infrastructure (CDRI)
– Global Biofuel Alliance (GBA)
– International Big Cat Alliance (IBCA) |
| Parliamentary Engagement |
PM Modi addressed the Joint Session of Ethiopian Parliament on 17 December 2025 |

Conclusion
India–Ethiopia relations are characterised by political continuity, expanding economic engagement, and strategic convergence. Ethiopia’s role in Africa, BRICS, and the Global South enhances its importance for India’s Africa policy. The elevation of ties to a Strategic Partnership marks a new phase of cooperation rooted in development, security, and multilateral collaboration, reinforcing India’s long-term engagement with Africa.
Prelims question:
Q. Which of the following statements about India–Ethiopia relations is correct?
a) Ethiopia is a member of the African Union but not BRICS.
b) India–Ethiopia ties are rooted in over 2,000 years of historical and trade links.
c) India has no defence cooperation agreement with Ethiopia.
d) India–Ethiopia trade is limited to agricultural products.
Answer: B
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