India's Minister of State for External Affairs V. Muraleedharan  said that even as trade and economic relations between India and Ethiopia are booming, there is still huge scope to expand and diversify trade between the two countries.  "I invite Indian entrepreneurs to consider establishing high-quality educational institutions, of both technical and non-technical nature, in Ethiopia," Muraleedharan said.

He was speaking at India-Ethiopia Business Forum organised by The Associated Chambers of Commerce and Industry of India (Assocham) in honour of Ethiopia's deputy prime minister and Foreign Minister Demeke Mekonnen who is visiting India along with his state minister for foreign affairs Birtukan Ayano Dadi.

He said that the economy of Ethiopia, the second-most populous African country, which has been posting a double-digit growth rate for over 15 years together with its highly-educated, skilled populace and sound economic policies, makes it an attractive investment destination for Indian entrepreneurs.

The minister highlighted that despite the Covid-19 global pandemic, Indian businessmen continued to explore investment opportunities in the African country. "During the last one year, we have had 35 new Indian investments in Ethiopia."

Today there are over 607 Indian companies in Ethiopia with a licensed investment of over $5 billion (bn) employing about 75,000 Ethiopian nationals. About 61 per cent of Indian investments are in the manufacturing sector followed by agriculture (14 per cent).

Muraleedharan said that Ethiopia is one of the largest recipients of India's concessional loans or lines of credit in Africa. "I am glad that our development partnership covers sectors such as rural electrification and the sugar industry and consists of a total of six lines of credit amounting to $705 million extended to Ethiopia."

Addressing Indian entrepreneurs, Ethiopian deputy PM Mekonnen said that bilateral trade ties between India and Ethiopia have reached $1.23 bn. Over the years, although Indian exportable goods to Ethiopia have shown exponential growth, he rued that Ethiopia's export to India remains as low as before.

"We have also defined new frontiers of growth including digital economy, tourism, science and technology, human resource development and increase in productivity in agriculture and industry," he said.

He also assured facilitation from his government for prospective Indian investments.

Vineet Agarwal, president, ASSOCHAM said that India is looking to work more closely with the context of the recently ratified African Continental Free Trade Area (AfCFTA). "The FTA should enhance trade with Ethiopia and other African Countries."

(IANS)