Context
As part of a three-nation tour (Jordan–Ethiopia–Oman), PM Narendra Modi paid his first bilateral visit to Ethiopia on 16–17 December 2025. During the visit, he held wide-ranging discussions with Ethiopian Prime Minister Abiy Ahmed Ali, reflecting Ethiopia’s growing importance for India in Africa, BRICS, and the Global South. The visit culminated in the elevation of bilateral ties to a Strategic Partnership.
Historical Background (Brief)
| Period | Key Linkages |
|---|---|
| Ancient era | Trade during Axumite Empire via port of Adulis |
| Medieval | Indian traders exchanged silk & spices |
| Colonial era | Indian soldiers aided Ethiopia during Italian occupation |
| Post-Independence | Diplomatic ties established in 1950 |
Key Outcomes of PM’s Visit (Dec 2025)
| Outcome | Significance |
|---|---|
| Strategic Partnership | Elevates bilateral engagement |
| 8 MoUs signed | Data Centre, debt restructuring under G20 framework |
| Ethiopia’s highest honour | ‘Great Honor Nishan of Ethiopia’ conferred on PM Modi |
| Defence & Security boost | Institutionalised cooperation |
| Global South coordination | Common voice on development, UNSC reform |
Key Pillars of India–Ethiopia Relations
1. Political & Diplomatic Engagement
-
- Regular Prime Ministerial meetings on sidelines of G20 and BRICS Summits
- Institutional mechanisms: Foreign Office Consultations, Joint Trade Committee
- Parliamentary and ministerial exchanges reinforce continuity
2. Economic & Commercial Relations
| Indicator (FY 2024–25) | Data |
|---|---|
| Total Trade | US$ 550.19 million |
| Indian Exports | US$ 476.81 million |
| Indian Imports | US$ 73.38 million |
| Trade Nature | Strongly export-driven |
Investment Footprint
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- 675+ Indian companies registered
- US$ 6.5+ billion total investment
- Focus sectors: manufacturing, pharmaceuticals, textiles
- 75,000+ local jobs created
3. Development & Capacity Building
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- Ethiopia is a beneficiary under India’s Duty-Free Tariff Preference (DFTP) scheme
- Training programmes under ITEC
- Cooperation in education, health, skilling and governance
4. Defence & Security Cooperation
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- Defence Cooperation MoU signed in 2025
- First Joint Defence Cooperation meeting
- Strong convergence on counter-terrorism and zero tolerance to extremism
5. Technology, Digital & Climate Cooperation
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- MoU to establish Data Centre at Ethiopian MFA
- Cooperation on Digital Public Infrastructure
- Collaboration on critical minerals, clean energy, agriculture technology
- Engagement through ISA, CDRI, GBA and IBCA
People-to-People Ties
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- Indian diaspora: ~2,500
- Long presence of Indian teachers and professionals
- Indian community acts as a living bridge between the two nations
Challenges
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- Trade imbalance remains high
- Ethiopia’s economic stress and debt vulnerability
- Need for diversification beyond export-heavy engagement
- Regional instability in the Horn of Africa
Way Forward
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- Diversify trade basket and value-added exports
- Scale up investments in manufacturing, pharma and agri-processing
- Strengthen cooperation in digital public goods and clean energy
- Expand defence training and capacity-building
- Coordinate positions in BRICS, UN, Global South platforms
Conclusion
India–Ethiopia relations reflect a resilient and forward-looking partnership grounded in historical ties, sustained political engagement and strong economic presence. The elevation to a Strategic Partnership during PM Modi’s 2025 visit marks a qualitative shift, positioning Ethiopia as a key anchor of India’s Africa policy. With rising investments, institutional dialogue and shared leadership in the Global South, the partnership has the potential to evolve into a pillar of India–Africa cooperation in the 21st century.
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