India has sought to collaborate with Ethiopia, one of the fastest growing economies in Africa, in digital payment solutions used by the two countries — India’s Unified Payment Interface (UPI) and Ethiopia’s Ethswitch. Further, the two countries should explore settlement of trade transactions in the local currency to boost bilateral trade and conserve foreign exchange.
The two sides have identified several areas for cooperation, including automobiles, textiles, infrastructure projects, health and pharmaceuticals, food and agro processing, at the 6th Session of the India-Ethiopia Joint Trade Committee (JTC) in Addis Ababa, Ethiopia from November 6-7, an official release said.
India also asked Ethiopia to expedite the finalisation of the Bilateral Investment Treaty.
“Both sides agreed to address all issues impeding bilateral trade and facilitate trade promotion between the two countries. The Indian side invited the Ethiopian side to collaborate on India’s Unified Payment Interface (UPI) and Ethswitch of Ethiopia. It urged Ethiopia to explore the possibility of settlement of trade transactions in the local currency, which would help boost bilateral trade and conserve foreign exchange,” the release added.
Bilateral trade between India and Ethiopia was valued at $642.59 million in 2022-23. India is the second largest exporter to Ethiopia. Indian companies are among the top three foreign investors in Ethiopia, with existing Indian investment of $5 billion. Indian companies have invested in various sectors, including agriculture and floriculture, plastics, engineering, manufacturing, cotton and textiles, water management, pharmaceuticals and healthcare.