India, Ethiopia elevate ties to strategic partnership; focus on mining, DPI

In his discussion with the Ethiopian PM, PM Modi conveyed India's support to Ethiopia's accession process at the World Trade Organisation (WTO), as well as membership to the New Development Bank

During Prime Minister Narendra Modi’s two-day visit to Ethiopia, which concluded on Wednesday evening, the two sides discussed deepening the economic partnership between the two countries, especially in the fields of digital public infrastructure (DPI), mining, critical minerals, and clean energy in the context of the African country opening up its economy.

 

In his address to the joint sitting of the Ethiopian Parliament on Wednesday and also during his discussions with his Ethiopian counterpart Abiy Ahmed on Tuesday evening, Modi stated that Indian companies have invested over $ 5 billion in the Ethiopian economy, especially in essential sectors of manufacturing and pharmaceuticals, creating over 75,000 local jobs. More than 650 Indian companies are registered with the Ethiopian licensing investment department.

 

 

Given the reform agenda that the Ethiopian PM has undertaken in the area of economy and development, Modi conveyed to Prime Minister Abiy that India will work very closely with Ethiopia as per Ethiopia’s priorities and encourage the Indian private sector to do more in Ethiopia, Indian officials said.

 

In his address to the Ethiopian Parliament, Modi said, “India’s national song ‘Vande Mataram’, and the Ethiopian national anthem, both refer to our land as the mother. They inspire us to take pride in the heritage, culture, natural beauty and protect the motherland.”

 

In his discussion with the Ethiopian PM, Modi conveyed India’s support to Ethiopia’s accession process at the World Trade Organisation (WTO), as well as membership to the New Development Bank. Ethiopia has recently joined the BRICS grouping, and India has been a consistent supporter of Ethiopia’s bid to join as a borrowing member to the New Development Bank.

 

During their meeting, the two leaders decided to elevate the bilateral partnership to a strategic partnership. Both sides agreed to further expand cooperation in several other areas including trade and investment, agriculture, renewable energy, health, education, skill development, defence, and Artificial Intelligence.

 

At a special ceremony organised at the Addis International Convention Centre last evening, Modi received Ethiopia’s highest award, the “Great Honor Nishan of Ethiopia” from the Ethiopian PM. On Tuesday, the Ethiopian PM received Modi at the airport and drove him directly to the National Science Museum and Friendship Park in Addis Ababa.

 

India has also offered to support Ethiopia with the G20 Common Framework on debt to address the debt vulnerability of some developing countries. India has signed an agreement that will give some sort of leeway to Ethiopia in terms of debt payment under the lines of credit given by India to Ethiopia in the past few years, Indian officials said.

 

During Modi’s visit, the two sides signed agreements in the fields of UN Peacekeeping Operations Training, Mutual Administrative Assistance in the Customs Matters, and the establishment of a data centre at the Ministry of Foreign Affairs of Ethiopia. The two sides also announced upgrading ties to ‘Strategic Partnership’, debt restructuring under G20, more Indian Council for Cultural Relations scholarships and AI short courses for Ethiopians, and support for maternal and neonatal healthcare.

 

In an X post, Modi said: “These are significant steps forward in our longstanding and trusted partnership.” He said that from governance and peacekeeping to digital capacity and education, the focus remains on empowering people.

 

“The emphasis on knowledge, skills and innovation underscores our shared faith in youth as the drivers of tomorrow. Cooperation in health care reflects a deeper commitment to human dignity and care for the most vulnerable. “These outcomes reflect an India-Ethiopia partnership focused on growth and people-centric development,” he said.

 

Modi landed in Muscat on Wednesday evening, the last leg of his three-nation visit. India and Oman will sign a free trade agreement on Thursday in Muscat, opening greater opportunities for sectors such as textiles, food processing, automobiles, auto components, and gems and jewellery. Commerce and Industry Minister Piyush Goyal has reached Muscat for the FTA signing.

 

Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. Speaking at the Oman-India Business Forum in Muscat, Goyal said it would be the first trade agreement Oman is entering into in nearly two decades. Oman last inked a similar agreement with the US in January 2006, he said.

 

“The free trade agreement offers immense opportunities for all of you,” Goyal told the gathering of businesses. He said huge potential is there to increase cooperation in sectors such as textiles, footwear, auto and auto components, gems and jewellery, agrochemicals, and renewable energy.

 

Oman is a gateway for other GCC countries, Eastern Europe, Africa and Central Asia, the minister said, adding: “We can look at collaborations in services sectors, such as chartered accountants, research and development, tourism, healthcare and education.”

 

The four prominent areas of collaboration are energy transition, infrastructure development, food security, and startups, he said.

 

Minister of Commerce, Industry and Investment Promotion of Oman Qais Al Yousef, in his address, said Indian investments in Oman have more than trebled since 2020, reaching US$ 5 billion, spanning sectors such as green steel, green ammonia, aluminium manufacturing and logistics.

 

India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022. The other members of the council are Bahrain, Kuwait, Saudi Arabia, and Qatar.