India and Ethiopia share a rich trade and diplomatic history spanning over 2,000 years, rooted in the exchange of spices, silk, gold, and ivory. Centuries ago, Indian merchants crossed the Red Sea and the Indian Ocean to trade black pepper and silk for Ethiopian gold and ivory, creating a foundation for enduring bilateral relations.
Ancient Trade and Historical Ties
Historically known as Abyssinia, Ethiopia was a key source of ivory, while Indian traders brought spices like black pepper and silk. These trades often took place through ports such as Aden, facilitating cultural and economic links between the two regions. Early exchanges date back to the Axumite Empire in the 1st century CE, marking the beginning of a relationship that has continuously evolved.
Modern Diplomatic Relations
Post-independence, India and Ethiopia established diplomatic ties in 1948, with Ethiopia becoming the first African country to open an embassy in New Delhi. Over the years, the two nations have strengthened their cooperation through over 20 agreements in sectors including trade, investment, defense, ICT, agriculture, and public relations.
Economic and Trade Engagements
Currently, India is a major investor in Ethiopia, contributing to agriculture, manufacturing, mining, pharmaceuticals, and consultancy sectors. India exports iron and steel products, medicines, machinery, and sugar to Ethiopia, while importing pulses, oilseeds, spices, vegetables, leather, and semi-precious stones. Bilateral trade reached $2 billion in 2022, reflecting a robust economic partnership.
Strengthening South-South Cooperation
Prime Minister Narendra Modi’s visit to Ethiopia on December 16-17, 2025, underscores India’s commitment to South-South cooperation. During this visit, PM Modi will hold bilateral and delegation-level talks with Ethiopian Prime Minister Dr. Abiy Ahmed, aiming to enhance trade, investment, and strategic collaboration.
Cultural and Historical Legacy
The historical trade of spices and ivory not only established economic ties but also cemented cultural relations between India and Ethiopia. From ancient maritime routes to modern trade corridors, the relationship continues to flourish, making Ethiopia a key partner in India’s engagement with Africa.
This historic and evolving partnership demonstrates how ancient trade legacies have transformed into modern economic and strategic cooperation, benefiting both nations and reinforcing long-standing mutual trust.
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