The High Commission of India to Tanzania has released a statement disclosing that Tanzania has become India’s second-largest trade partner in Africa, up from the third position last year.
This new ranking places Tanzania ahead of Nigeria, which has now moved to third place, and positions Tanzania second only to South Africa.
According to data from the Government of India, India-Tanzania bilateral trade soared to USD 7.9 billion in the financial year 2023-24, marking a 22% growth over the previous year.
The latest trade statistics reveal not only an increase in the volume of bilateral trade but also an improvement in the trade balance. Tanzanian exports to India surged by 29.5%, reaching USD 3.29 billion, making India the largest export destination for Tanzania.
In the calendar year 2023, India stands out as Tanzania’s top export market, with exports to India surpassing those to Tanzania’s next largest export market by over 50%.
The balance of trade between India and Tanzania has shifted favorably towards Tanzania, improving by USD 435.51 million. This indicates balanced and robust growth in bilateral trade.
Tanzania has a diverse range of exports to India, notably in the agricultural sector. India is a significant importer of various produce, including legumes such as pigeon peas, soybeans, and cashew nuts, alongside avocados and other agricultural goods. Additionally, India imports Tanzanian gold and coal, which bolsters Tanzania’s mining industry.
Conversely, India contributes significantly to Tanzania’s economic advancement by exporting essential commodities such as petroleum products, industrial machinery, and tractors, which facilitate industrialization and economic growth.
Moreover, India supplies life-saving pharmaceutical products at competitive prices, alleviating the healthcare burden on Tanzanian citizens.
The export of sugar from India to Tanzania also plays a pivotal role in stabilizing prices and providing relief to consumers. Indian motorcycles and automobiles are popular among Tanzanians.
In its statement, the High Commission explained: “The burgeoning trade relations between India and Tanzania underscore the mutual commitment to fostering economic growth, enhancing cooperation, and unlocking shared prosperity. As both nations continue to deepen their engagement across various sectors, the trajectory of their bilateral trade is poised for further growth and diversification in the years to come. This robust partnership holds the promise of mutual benefit, driving socio-economic development and prosperity for both India and Tanzania.”
