The India-Ethiopia Joint Trade Committee (JTC) is a bilateral forum that works to bolster trade and investment relations between India and Ethiopia. This committee organizes regular meetings where they review and devise strategies to enhance economic ties. It comprises high-ranking officials from the Ministry of Commerce and Industry of India and the Ministry of Trade and Regional Integration of Ethiopia. This platform discusses an array of subjects including trade, investment, cooperation, and policy matters.
Highlights of the 6th Session of the India-Ethiopia JTC
The latest session, marking the 6th meeting of the India-Ethiopia JTC, recently took place in Addis Ababa, Ethiopia. At this meeting, India proposed that Ethiopia integrate its Ethswitch with the Unified Payment Interface (UPI) of India. The former is a payment platform infrastructure in Ethiopia, while the latter is a real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions.
Moreover, India encouraged Ethiopia to consider trade transactions in local currency to enhance bilateral trade and conserve foreign exchange. Key sectors such as health and pharmaceuticals, automobiles, textiles, infrastructure projects, food, and agro-processing were pinpointed as potential areas for mutual investments. The two nations also assessed the progress of ongoing discussions pertaining to Memorandums of Understanding (MoUs) in the sphere of standardization, quality assurance, and customs procedure and agreed to hasten their conclusion.
Trade Relations Between India and Ethiopia
India-Ethiopia trade relations have been historically strong with India being one of the biggest sources of long-term concessional credit to Ethiopia. India has provided over USD 1 billion for various sectors including rural electrification, sugar industry, and railways.
In 2022-23, bilateral trade between India and Ethiopia touched a record high of USD 642.59 million. Ethiopia’s economy grew by an impressive estimated 6.4% in 2021-22, making India the second-largest exporter to Ethiopia. Indian companies also rank among the top three foreign investors in Ethiopia with existing investments totalling USD 5 billion.
About Ethiopia
Ethiopia, officially known as the Federal Democratic Republic of Ethiopia, is one of the oldest countries in the world which successfully evaded colonization by European powers. This landlocked nation, located in the Horn of Africa, shares its boundaries with several countries including Sudan, Eritrea, Djibouti, Somalia, Kenya, and South Sudan.
The capital of Ethiopia is Addis Ababa. Among the country’s notable features is the unique Ethiopian Calendar, consisting of 12 months of 30 days each, plus an additional five or six days which are sometimes referred to as the 13th month. Ethiopia also boasts of Ras Dejen (or Dashen), the highest peak in the country, and Lake Tana, the largest lake which is the source of the Blue Nile river.
Previous Year Questions on UPSC Civil Services Examination related to Ethiopia
A question from the 2013 Preliminary Exam under the Geographical Feature Region category asked about correctly matching pairs. The example featured the Abyssinian Plateau located in Ethiopia.
