India and Ethiopia on Tuesday upgraded their relationship to a Strategic Partnership and signed eight agreements after high-level talks in Addis Ababa during Prime Minister Narendra Modi’s visit on December 16–17, 2025. The visit is part of his three-nation tour that also includes Jordan and Oman.
PM Modi and Ethiopian Prime Minister Dr Abiy Ahmed Ali reviewed political, economic and strategic cooperation and discussed key regional and global developments. The Prime Minister’s first bilateral trip to Ethiopia is seen as part of India’s wider outreach to Africa.
Ethiopia accorded PM Modi a ceremonial welcome at the National Palace. Later, at the Addis International Convention Centre, the Ethiopian government conferred on him the ‘Great Honour Nishan of Ethiopia’, the country’s highest award, citing his role in strengthening bilateral ties and his leadership on global issues.
The two sides signed eight agreements aimed at expanding cooperation across a wide range of sectors. These included a debt restructuring agreement under the G20 Common Framework, an agreement on cooperation and mutual administrative assistance in customs matters, and a pact to establish a data centre at Ethiopia’s Ministry of Foreign Affairs. Other agreements focused on artificial intelligence training, the doubling of Indian Council for Cultural Relations scholarships for Ethiopian students, the introduction of specialised short-term AI courses under the Indian Technical and Economic Cooperation programme, cooperation in United Nations peacekeeping operations training, and administrative collaboration.
India also committed to supporting capacity augmentation at the Mahatma Gandhi Hospital in Addis Ababa, with a specific focus on strengthening maternal and neonatal healthcare services. Officials on both sides said the agreements reflected a shared emphasis on institution-building, skills development and long-term capacity creation rather than short-term assistance.
During the visit, PM Modi addressed a joint session of the Ethiopian Parliament on December 17. In his remarks, he underlined the importance of India–Africa cooperation and emphasised the role of countries of the Global South in shaping a more representative and inclusive global order.
Economic engagement between the two countries has continued to expand. In the financial year 2024–25, bilateral trade stood at USD 550.19 million. Indian exports accounted for USD 476.81 million, while imports from Ethiopia were valued at USD 73.38 million, making the relationship strongly export-driven. India’s exports include iron and steel products, pharmaceuticals and drugs, machinery and instruments, and engineering goods. Imports from Ethiopia comprise pulses, precious and semi-precious stones, vegetables and seeds, leather, and spices. Ethiopia also benefits from India’s Duty-Free Tariff Preference scheme for Least Developed Countries, which aims to improve market access for African exports.
Indian companies remain among the most prominent foreign investors in Ethiopia. More than 675 Indian firms are registered in the country, placing India among the top three sources of foreign investment. Total Indian investments exceed USD 6.5 billion, largely concentrated in manufacturing and pharmaceuticals, and have generated over 75,000 local jobs. During the visit, officials noted that Indian investments alone have crossed USD 5 billion, underlining their contribution to employment generation and industrial development.
Political engagement between New Delhi and Addis Ababa has remained steady at multiple levels. PM Modi and Prime Minister Abiy Ahmed had earlier met on the sidelines of the G20 Summit in Johannesburg on November 22, 2025, and during the BRICS Summit on August 24, 2023. Ethiopia also participated in the India-hosted Voice of the Global South Summits held in November 2023 and August 2024.
At the ministerial level, External Affairs Minister Dr. S. Jaishankar visited Addis Ababa in April and June 2023. He later met his Ethiopian counterpart during the 79th United Nations General Assembly in September 2024 and at the G20 Foreign Ministers’ Meeting in February 2025. These engagements focused on development partnership, education, health, regional issues and cooperation within multilateral platforms.
Defence cooperation has also gathered momentum. Ethiopia’s Defence Minister visited India and signed a Defence Cooperation Memorandum of Understanding on the sidelines of Aero India 2025. The two countries subsequently held their first Joint Defence Cooperation meeting in October 2025, reflecting growing security and training collaboration.
Parliamentary exchanges have added another layer to bilateral engagement. A multi-party Indian parliamentary delegation led by Supriya Sule visited Ethiopia from May 30 to June 1, 2025. The delegation met Ethiopian political leaders, African Union officials, academics, media representatives and members of the Indian diaspora, and reiterated India’s zero-tolerance approach to terrorism.
India–Ethiopia relations rest on deep historical foundations. Trade links date back over 2,000 years to the Axumite Empire in the first century AD, when Indian traders exchanged silk and spices for gold and ivory through the port of Adulis. The two countries established formal diplomatic relations in 1950.
Today, around 2,500 Indians live in Ethiopia, including nearly 150 faculty members teaching in universities and professionals working with Indian and Ethiopian companies. The community, largely of Gujarati origin, has played a notable role in Ethiopia’s education sector since the late 19th century.
Looking ahead, both sides agreed to expand cooperation in trade, investment, digital public infrastructure, healthcare, traditional medicine, food security, agriculture, clean energy, critical minerals, defence and education. They also reaffirmed their commitment to multilateral reforms, climate action, renewable energy, disaster resilience and collaboration through platforms such as BRICS, G20, the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, the Global Biofuels Alliance and the India–Brazil–South Africa Dialogue Forum.
With the decision to formalise a Strategic Partnership, alongside expanding trade, investment and development cooperation, India–Ethiopia relations are entering a more structured and forward-looking phase, reinforcing Ethiopia’s importance in India’s Africa strategy and broader Global South engagement.
