As part of a three nation visit to Jordan, Ethiopia and Oman from 15-18 December, 2025 PM Narendra Modi was in Ethiopia on 16-17 December. During the visit, Modi had been received personally by his Ethiopian counterpart and Nobel laureate Dr. Abiy Ahmed.
As per the official press release by PMO, the recent talks added a new chapter to the India-Ethopia foreign relations by significantly boosting trade ties. 8 MoUs were signed between both countries which were focused on expanding bilateral trade through easing custom regulations, AI training and data centre infrastructure push.
During their talks PM Modi stressed upon the requirement of enhanced cooperation across Digital Public Infrastructure, mining, critical minerals and clean energy, as well as food security and agriculture between both nations. The two leaders also reviewed progress in the areas of trade and investment, innovation and technology, education and capacity building.
India-Ethiopia: Complete trade tally
With a total bilateral trade between India and Ethiopia of $550.19 million in FY 2024–25, India’s relations with Ethiopia are anchored via their economic ties. Indian exports worth $476.81 million, account for the majority of the total trade compared with imports of $73.38 million, making the relationship strongly export-driven for India .
Moreover, Indian companies have invested over $5 billion in the Ethiopian economy, especially in essential sectors of manufacturing and pharmaceuticals, creating over 75,000 local jobs. Indian companies are in the top three foreign investors in Ethiopia with newer Indian multinationals marking their presence in Ethiopia. The MoUs signed today are expected to further increase ease of business for Indian companies in the country.
Areas covered by 8 MoUs
Both countries signed 8 MoUs directed towards enhancing ‘Strategic Partnership’, customs cooperation, establishing a data centre at the Ethiopian Foreign Ministry, UN Peacekeeping training cooperation, debt restructuring under G20, more ICCR scholarships and AI short courses for Ethiopians.
These initiatives together reinforces India’s Global South leadership during and after its G20 presidency, amplifies people to people ties with cultural programs and scholarships and strengthens joint partnerships on climate finance, development, and equity.
Global South leadership
The partnership is also supposed to support India’s broader efforts to amplify the voice of the global south in international forums and strengthen its position in multinational bodies like BRICS and G20.
Cooperation on climate change
They also discussed cooperation on climate change, renewable energy and disaster risk reduction, welcoming Ethiopia’s engagement with global initiatives backed by India, including International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), Global Biofuel Alliance, International Big Cat Alliance .
The visit combined with the eight MoUs reflect a shift from transactional trade ties to a strategic, capacity-building partnership between the countries with emphasis on digital governance, skills, climate cooperation and Global South leadership—core pillars of India’s current foreign policy approach in Africa.
After concluding his engagements in Ethiopia on December 17, Prime Minister Narendra Modi will travel to Oman, the final leg of his multi-nation tour. In Muscat, he is scheduled to hold talks aimed at deepening cooperation in trade, energy, defence and regional connectivity.
