India invites Ethiopia to collaborate on United Payments Interface (UPI)
Ethiopia is one of the fastest growing economies in the African region
India has invited Ethiopia to collaborate on the United Payments Interface (UPI), the Ministry of Commerce and Industry said on Wednesday (November 8, 2023). Additionally, Ethiopia has also been urged to look at the possibility of trade settlement in local currency.
These were among a host of issues discussed at the 6th Session of India-Ethiopia Joint Trade Committee (JTC) held in Addis Ababa, Ethiopia on November 6-7, 2023.
During the JTC meeting, the Indian side invited the Ethiopian side to collaborate on the Unified Payments Interface (UPI) of India with Ethswitch of Ethiopia. Further, the Indian side also urged Ethiopia to explore the possibility of settlement of trade transactions in local currency which will help boost bilateral trade and conserve foreign exchange.
India and Ethiopia undertook a detailed review of recent developments in bilateral trade and investment ties and noted that the relationship has a huge potential to be scaled up even further. To this effect, both sides identified several areas of focus for enhancing both bilateral trade as well as mutually beneficial investments. These include health and pharmaceuticals, automobiles, textiles, infrastructure projects, food and agro-processing.
They also reviewed the progress of ongoing discussions for Memorandum of Understanding (MoUs) in the field of Standardization & Quality assurance and Customs procedure and agreed to conclude them expeditiously. The Indian side also requested the Ethiopian side to expedite the early finalization of the Bilateral Investment Treaty.
“Both sides agreed to expeditiously address all issues impeding bilateral trade and facilitate trade promotion between the two countries,” the Ministry of Commerce and Industry said.
The meeting was co-chaired by the Economic Advisor, Department of Commerce, Ministry of Commerce and Industry, Government of India, Priya P Nair, and the Lead Executive of the International and Regional Trade Integration, Ministry of Trade & Regional Integration, Ethiopia, Tages Mulugeta. Ambassador of India to Ethiopia Robert Shetkintong and other senior officials from both sides also participated in the JTC.
“The deliberations of the 6th Sessions of India-Ethiopia JTC were cordial and forward-looking, reflecting the traditionally friendly and special relations between the two countries,” the Ministry of Commerce and Industry noted.
The Federal Democratic Republic of Ethiopia is one of the fastest growing economies in the African region, with an estimated growth of 6.4% in the year 2021-22.
Bilateral trade between India and Ethiopia stood at USD 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 USD 5 billion of which, about USD 3-4 billion is estimated to be on the ground.
Indian companies have invested in various sectors like agriculture and floriculture, engineering, plastics, manufacturing, cotton and textiles, water management, pharmaceuticals and healthcare.