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A study of legal aspects on Ethiopia- India Trade and Investment relations


Affiliations
1 BBA LLB, IV Semester, ABBS School of Law, Bengaluru, Affiliated to Karnataka State Law University, India
2 BBA LLB, II Semester, ABBS School of Law, Bengaluru, Affiliated to Karnataka State Law University, India
3 Associate Professor, Department of Commerce and Management, Acharya Bangalore B-School, Affiliated to Bangalore University, Bengaluru, India
4 Assistant Professor, Department of Commerce and Management, Acharya Bangalore B-School, Affiliated to Bangalore University, Bengaluru, India
 

According to RUNOKA (2016), “close relationships between Africa and early India have existed for more than two thousand years”. India has close relationships with African countries in terms of historical, cultural, geographical, political, economic and commercial aspects.

In this trade relation between the two countries, the chronic trade deficit has remained the dominant feature of Ethiopia’s external trade with India. Therefore, economic relations between Ethiopia and India are unequal and asymmetrical. The widening deficits in favor of India need the attention of both governments in order to sustain the trade relationships between the two countries. There is no Ethiopian Investment in India. Indian companies maintained their reputation as being in the top three foreign investors in Ethiopia with newer Indian multinationals marking their presence in Ethiopia.

There are more than 584 Indian companies in Ethiopia with licensed investments of over US$ 4 billion of which about US$ 2 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, consultancy and ICT, education, pharmaceuticals and healthcare. The trade imbalance remains a structural problem in the trade relations between the two countries. Indian agricultural investments in Ethiopia have positive impacts like providing job opportunities for many Ethiopians, technology transfer generate government revenue and bringing foreign currency.


Keywords

Investment, Trade, laws, India, Ethiopia
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  • • “Ethiopia: One of the world’s fastest growing economies”. BBC News. 15 November 2011.

  • • Alamineh, Habtamu (2020). Business Challenges and Opportunities for Youth, Micro, Small and Medium Scale Entrepreneurs in Ethiopia: An Article Review, American Journal of Economics, Vol. 10(6): Pp.441-448.

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  • • Ethiopian ministry of education. (2008). National technical and vocational education and training (TVET) strategy. Addis Ababa.

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  • • Nita K. Solanki and Jignesh N. Vidani (2016). The Study Legal Aspects of Trade in Ethiopia, ZENITH International Journal of Multidisciplinary Research, Vol.6 (1): pp. 266-284.

  • • https://mea.gov.in


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  • A study of legal aspects on Ethiopia- India Trade and Investment relations

Abstract Views: 113  |  PDF Views: 73

Authors

Abigail Chacko
BBA LLB, IV Semester, ABBS School of Law, Bengaluru, Affiliated to Karnataka State Law University, India
Balachandra M.
BBA LLB, II Semester, ABBS School of Law, Bengaluru, Affiliated to Karnataka State Law University, India
Devaraja Nayaka
Associate Professor, Department of Commerce and Management, Acharya Bangalore B-School, Affiliated to Bangalore University, Bengaluru, India
Thirupathi M.
Assistant Professor, Department of Commerce and Management, Acharya Bangalore B-School, Affiliated to Bangalore University, Bengaluru, India

Abstract


According to RUNOKA (2016), “close relationships between Africa and early India have existed for more than two thousand years”. India has close relationships with African countries in terms of historical, cultural, geographical, political, economic and commercial aspects.

In this trade relation between the two countries, the chronic trade deficit has remained the dominant feature of Ethiopia’s external trade with India. Therefore, economic relations between Ethiopia and India are unequal and asymmetrical. The widening deficits in favor of India need the attention of both governments in order to sustain the trade relationships between the two countries. There is no Ethiopian Investment in India. Indian companies maintained their reputation as being in the top three foreign investors in Ethiopia with newer Indian multinationals marking their presence in Ethiopia.

There are more than 584 Indian companies in Ethiopia with licensed investments of over US$ 4 billion of which about US$ 2 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, consultancy and ICT, education, pharmaceuticals and healthcare. The trade imbalance remains a structural problem in the trade relations between the two countries. Indian agricultural investments in Ethiopia have positive impacts like providing job opportunities for many Ethiopians, technology transfer generate government revenue and bringing foreign currency.


Keywords


Investment, Trade, laws, India, Ethiopia

References