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Tanzania, India Trade Relations Set to Exceed Record $6.4 billion 

March 14, 2024
in News
Tanzania, India Trade Relations Set to Exceed Record $6.4 billion 
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Trade between India and Tanzania is expected to exceed $7bn this fiscal year. This will exceed the previous record set in 2022/2023 when trade between both countries was over $6.4bn.   

Currently, trade between the two countries for the financial year of 2023/2024 reached $5.7bn by December 2023.

In the previous year of 2022/2023, trade between both countries reached an astronomical height of $6.4bn setting a record.   

According to Business Insider Africa, Mr Manoj Verma, an official of the Indian High Commission in Tanzania announced during the Tanzania/India Business Forum that trade between both countries is set to surpass $7bn.

Mr. Manoj also pointed out that Tanzania at this rate would become India’s largest trading partner in Africa.  

“Our bilateral trade is set to cross $7 billion this year,” he said. “This has become possible due to favourable policies bolstering trade,” he added. 

Mr. Manoj revealed that India has become a top destination for Tanzanian exports. This is due to the duty-free scheme initiated by India. the scheme ensures that over 90% of goods entering India from Tanzania are duty-free.  

“In fact, as per Indian statistics, India is the number one destination for Tanzanian exports. It is undoubtedly the best trade partner for Tanzania,” Mr Manoj Verma stated.  

Through the years, India has proven to be a major investor in the Tanzanian economy. Mr. Manoj said India is one of the top five investors in the Tanzanian economy having invested over $3.39 billion.  

A dozen of Indian investors have touched down the country in the last year alone giving a significant boost to the bilateral trade between both countries.  

Additionally, an estimated $1.2bn worth of Indian-assisted development projects are being carried out in Tanzania, according to Binaya Srikanta Pardhan, India’s High Commissioner to Tanzania.  

This adds to the growing relationship between both countries and opens up a channel for more investment between both countries.

Recommended reading: “Trade volume between Nigeria and Cote d’Ivoire has reached $1.5 billion”- Ivorien Ambassador

What To Know  

The most popular goods India imports from Tanzania include Unwrought or semi-manufactured gold, dried leguminous vegetables, shelled coconuts, and cashew nuts.  

On the other hand, Tanzania imports the following from India. Scooters, motorcycles, electrical transformers, static converters, inductors, cycles with auxiliary motors, as well as petroleum and oil derived from bituminous materials.  

Tanzania also imports turbo-jets, turbo-propellers, and other types of gas turbines from India.  

In February, Indian Billionaire Gautam Adani noted that he was about to introduce his business to Tanzania. This makes it One more Indian investor looking at the prospects of investing in the Tanzanian economy.  

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