India–Ethiopia Strategic Partnership: Key Developments and Cooperation Areas

India–Ethiopia Strategic Partnership: Key Developments and Cooperation Areas

 

Key Takeaways

• PM Narendra Modi visited Ethiopia on 16-17 December 2025, on his first bilateral visit.
• He was conferred with ‘Great Honor Nishan of Ethiopia’ country’s highest honour during Addis Ababa visit.
• India and Ethiopia have elevated their bilateral ties to a Strategic Partnership, marking a new phase of cooperation.
• India, Ethiopia signed eight MoUs, agreements, including that for establishing a Data Centre at Ethiopia’s Ministry of Foreign Affairs and for debt restructuring under the G20 Common Framework.
• Over 675 Indian companies are registered with the Ethiopian Investment Commission, with total investments over USD 6.5 billion, especially in key sectors of manufacturing and pharmaceuticals, creating over 75,000 local jobs.
• Bilateral ties are supported by structured dialogues such as Foreign Office Consultations and Joint Trade Committee meetings.
• High-level political engagement is also sustained through Prime Minister-level meetings on the sidelines of G20 and BRICS Summits, and regular External Affairs Minister interactions.
• India–Ethiopia total trade stood at US$ 550.19 million in FY 2024–25. Indian exports are US$ 476.81 million and imports US$ 73.38 million, making the relationship strongly export-driven.

 

 

1. Prime Minister Narendra Modi visited Ethiopia on 16–17 December 2025 during a three-nation tour, arriving in Addis Ababa for formal talks with Abiy Ahmed.

2. He received the Great Honor Nishan of Ethiopia, the country’s highest award, in Addis Ababa, recognising contributions toward strengthening the bilateral partnership publicly, significantly.

3. Leaders elevated relations to a Strategic Partnership, signalling expanded cooperation in trade, investment, technology, skilling, education, defence, ICT, and people-to-people linkages across multiple sectors.

4. Eight agreements and MoUs were signed, including establishing a data centre at Ethiopia’s foreign ministry and formal debt restructuring under the G20 Common Framework.

5. Historical ties span over two millennia, including Axumite-era trade and exchanges via Adulis, linking Indian merchants with Ethiopian gold and ivory maritime routes early.

6. Formal diplomatic relations began in 1950, evolving into collaboration on trade, investment, capacity building, and development cooperation supported by structured institutional mechanisms today regularly.

7. High-level engagement occurs through regular meetings alongside G20 and BRICS summits, supplemented by ministerial interactions, telephonic conversations, Foreign Office Consultations, and Joint Trade Committees.

8. India–Ethiopia trade in FY 2024–25 totaled US$550.19 million, with exports US$476.81 million and imports US$73.38 million, yielding a surplus, making the relationship strongly export-driven.

9. Over 675 Indian companies are registered in Ethiopia, with investments exceeding US$6.5 billion, especially in manufacturing and pharmaceuticals, supporting substantial local employment across regions.

10. Indian investment is described as creating over 75,000 local jobs, alongside industrial capacity in essential sectors, including textiles, manufacturing, and pharmaceuticals production for Ethiopia.

11. Ethiopia benefits under India’s duty-free tariff preference for least developed countries, supporting market access and encouraging diversification and deeper economic cooperation for mutual benefit.

12. Recent exchanges included defence cooperation talks, parliamentary delegations, election-board study visit, and participation in textiles, health, solar energy, and governance programmes in Addis Ababa.

13. In 2025, a multi-party Indian parliamentary delegation met Ethiopian leaders and African Union representatives during May–June, emphasising zero tolerance toward terrorism and mutual solidarity.

14. Cooperation priorities discussed included digital public infrastructure, health security, digital health, traditional medicine, Jan Aushadhi Kendra, food security, natural farming, agri-tech, and innovation partnerships.

15. Both sides highlighted collaboration on climate action, renewable energy, disaster risk reduction, and engagement with international initiatives such as IBCA, CDRI, GBA, and ISA.

 

 

 

 

MCQ:

1. 1. With reference to the visit mentioned, the Prime Minister’s visit to Ethiopia took place on:
   A. 10–11 November 2025
   B. 16–17 December 2025
   C. 26–27 December 2025
   D. 1–2 January 2026

   2. The Prime Minister arrived in Ethiopia for formal talks in:
   A. Addis Ababa
   B. Gondar
   C. Dire Dawa
   D. Mekelle

   3. The Great Honor Nishan of Ethiopia, mentioned in the text, is:
   A. A state-level military decoration
   B. Ethiopia’s highest award
   C. An award of the African Union
   D. An economic merit award for investors

   4. The bilateral relationship was elevated to a:
   A. Comprehensive Economic Partnership
   B. Strategic Partnership
   C. Defence Alliance Treaty
   D. Customs Union Arrangement

   5. How many agreements and MoUs were signed during the visit as stated?
   A. Four
   B. Six
   C. Eight
   D. Ten

   6. Which of the following was included among the signed outcomes?
   A. Establishing a data centre at Ethiopia’s foreign ministry
   B. Setting up a nuclear research facility
   C. Launching a single-currency trade settlement
   D. Establishing a joint space station programme

   7. The debt restructuring mentioned was under the:
   A. Paris Club Mechanism
   B. G20 Common Framework
   C. IMF Extended Fund Facility
   D. World Bank Debt Service Suspension Initiative only

   8. The text notes that historical ties span over:
   A. 500 years
   B. 1,000 years
   C. 2,000 years
   D. 3,500 years

   9. The Axumite-era exchanges referenced in the text involved maritime links via:
   A. Massawa
   B. Adulis
   C. Berbera
   D. Mombasa

   10. Formal diplomatic relations between the two countries began in:
   A. 1947
   B. 1950
   C. 1956
   D. 1962

   11. High-level engagement is described as occurring alongside:
   A. ASEAN and SCO summits
   B. G20 and BRICS summits
   C. SAARC and BIMSTEC summits
   D. Commonwealth and NAM summits only

   12. India–Ethiopia trade in FY 2024–25 was approximately:
   A. US$150.19 million
   B. US$350.19 million
   C. US$550.19 million
   D. US$750.19 million

   13. As per the text, India’s exports to Ethiopia in FY 2024–25 were about:
   A. US$176.81 million
   B. US$276.81 million
   C. US$476.81 million
   D. US$676.81 million

   14. Over how many Indian companies are registered in Ethiopia, as stated?
   A. Over 275
   B. Over 475
   C. Over 675
   D. Over 875

   15. Ethiopia benefits under India’s:
   A. Export Credit Guarantee Scheme for developed countries
   B. Duty-free tariff preference for least developed countries
   C. Customs Union with African states
   D. Preferential market access only for landlocked countries