Indian Prime Minister Narendra Modi arrived in Ethiopia on Tuesday for a two-day official visit aimed at strengthening political and economic ties between the two countries. He held talks with Ethiopian Prime Minister Abiy Ahmed in Addis Ababa before meeting members of the Indian diaspora, who welcomed him with cultural performances, flag-waving and chants. Local Ethiopian artists also performed songs in Hindi during his stay. In a statement, Modi said he would address a joint session of Ethiopia’s parliament, underscoring the importance New Delhi places on the relationship. India views Ethiopia as a key partner in Africa, both economically and strategically, as it seeks to expand its influence on the continent amid growing competition from China. Ethiopia hosts the African Union headquarters and gained added global prominence after joining the expanded BRICS group in 2024.
More than 175 Indian companies currently operate in Ethiopia, largely in the textile and manufacturing sectors. While early Indian investments in agriculture faced fiscal and logistical hurdles, New Delhi is increasingly focused on mining, particularly Ethiopia’s largely untapped reserves of critical minerals and rare earths used in renewable energy, batteries and semiconductors. Ethiopia, for its part, is seeking greater Indian investment in pharmaceuticals, agro-processing and light industry. With India also aiming to expand trade through the African Continental Free Trade Area (AfCFTA), officials expect Modi’s visit to result in new cooperation agreements and investment commitments.
