Prime Minister Narendra Modi began a historic first visit to Ethiopia this week, marking the beginning of a new era with the establishment of a new Ethiopian-Indian strategic partnership. The visit underscores India’s increasing interest in the African continent as a key partner in trade and technological development. While in Addis Ababa, Modi met with Ethiopian Prime Minister Abiy Ahmed.
A discussion about diplomatic relations and economies
The two extensively discussed diplomatic relations in trade and commerce, agriculture, renewable energy, and Digital Technology, according to The Economic Times. The two heads of state signed a series of agreements to stimulate India-Ethiopia economic relations. The agreements will seek to increase Indian investment in the Ethiopian infrastructure and manufacturing sectors, and educational and skills cooperation.
Comments from the leaders
Modi, on India’s commitments
“I believe it will do a great deal to help Ethiopia realize its development objectives in terms of capacity building and technology transfer, Ethiopia and India had and continue to have a historic bond of friendship. It is to this friendship that we now seek to offer new dimensions and new heights”
The partnership will unlock new avenues for collaboration and engagement to include relations in regional and international peace and security, defense, and the fight against terrorism.
India’s opportunity to capitalize on Ethiopia’s economy
Ethiopia has one of the fastest-growing economies in Africa, and Indian businesses can capitalize on its economic potential. Trade relations between the two countries, India and Ethiopia, are currently over a $1 billion, with India exporting medicines, machinery, and cars, and Ethiopia exporting its farm products and minerals. The new agreement between the two countries, Ethiopia and India, is planned to raise the dollar volume to over $2 billion in the next five years.
Ethiopia has become a welcoming destination for Indian businesses
Ethiopia and India opened the doorway to fast commerce by traveling to Ethiopia together. In accordance with the trading agreements made, Ethiopia also granted India a loan to build roads and other power facilities in Ethiopia.
Out of the many gestures that reflect the warmth of the relationship, the one that captured the most attention around the world was when Ethiopian Prime Minister Abiy Ahmed, on diplomatic grounds, drove Indian Prime Minister Modi to the airport by himself after the visit. The rare act made headlines, and pictures of the two world leaders spread to the media to confirm the said diplomatic relations between Ethiopia and India.
Ethiopia realizes how important India is to its progress
Ethiopia also wants to exchange diplomatic signals on how it sees India, not purely as an economic partner, but Ethiopia wants India as a friend, which is important in the world economy as well.
Ethiopia is very important to India, because it is the center for the African Union and is an important country in East Africa. Ethiopia and other African countries are important to India because it follows its own policy of not interfering with countries in the region. India helps Ethiopia to gain influence in the African region because it wants to help bring peace to Africa.
Global superpowers want to establish relationships with African countries, including Ethiopia
Ethiopia is a potential partner for India, as it helps countries to develop. Also, India is likely to gain respect from Ethiopia as it provides limited traditional help to countries. With Modi leaving Addis Ababa, India and Ethiopia were smiling and positive about the newfound partnership. They were expected to turn into benefits to both. l Most importantly, the agreement and the visit to Addis Ababa, Ethiopia, both trust and mutual growth and inclusive global order partnership.
