Prospect of India-Ethiopia investment and trade cooperation

Prospect of India-Ethiopia investment and trade cooperation

In recent years, with the opening up of the Ethiopian and India economy, investment and trade ties between the two countries have grown significantly. While Ethiopia’s major exports are food and live animals, coffee and tea, crude materials and vegetable and fruits, India’s major import items are manufactured products and fuels. Thus Ethiopia’s exports are not diversified enough to meet the import demands of India.

This policy brief identifies major hindrances to trade and investment between India and Ethiopia. Among others, poor business climate, infrastructure deficiencies, higher import tariff, limited scope in Duty-Free Trade Preference (DFTP) schemes and limited access to trade financing have hampered trade between two countries. Both the countries need to take some concrete measures to remove above hindrances to take trade and investment to a new level.

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