India and Ethiopia to Elevate Multi-Millenia Ties to Strategic Partnership During Modi’s Visit
From 16 to 17 December 2025, Indian PM Narendra Modi undertook a state visit to Ethiopia as part of a three-nation tour, which took him to Jordan and Oman as well. This visit represents the first visit by an Indian PM for a very long time, and through this visit, Modi seeks to rekindle ties between India and Ethiopia that date back more than 2,000 years.
In ancient times, merchants on both sides started trading Indian cotton and silk in exchange for Ethiopian gold and ivory. The Indian merchants departed from ports in Western India, such as Barygaza, Muziris, and Arikamedu, then traversed the Indian Ocean at the favor of the seasonal monsoon winds to reach Adulis, which was one of the main ports on the Red Sea.
During the visit, India and Ethiopia elevated their diplomatic ties to a strategic partnership. In addition, both sides signed numerous accords as follows:
- Cooperation and mutual administrative assistance in Customs operations
- Establishment for setting up a Data Center at the Ministry of Foreign Affairs of Ethiopia
- Training for UN Peacekeeping Operations
- Debt restructuring for Ethiopia under the G20 Common Framework
- Double scholarships offered to Ethiopia under the Indian Council for Cultural Relations (ICCR) scheme
- Capacity building in AI for Ethiopians under the India Technical and Economic Cooperation (ITEC) program
- Capacity expansion of the Mahatma Gandhi Hospital in Addis Ababa
675 Indian companies are registered with the Ethiopian Investment Commission, injecting a cumulative FDI of USD 6.5 billion. The investments span various sectors, including textiles, manufacturing, and pharmaceuticals. In terms of jobs, Indian companies employ over 75,000 Ethiopians.
On the other hand, bilateral trade volume is well below expectations. For fiscal year 2024-2025, the bilateral trade stood at USD 550 million, with Indian exports reaching USD 477 million.
PM Modi delivered a speech at the Ethiopian Parliament. On the occasion of this visit, Ethiopian PM Abiy conferred on Indian PM Modi the ‘Great Honor Nishan of Ethiopia’, which is the highest honor of the land.
In 2026, India will chair BRICS, while Ethiopia became a member of BRICS in 2024. PM Modi recalled that it was during India’s presidency of the G20 in 2022 that the African Union became a permanent member of the G20. As key members of the Global South and ancient civilizational states, both countries have a lot in common and can share their developmental experiences.