Bilateral trade between Tanzania and India is on a trajectory to exceed USD 7 billion in the current fiscal year, marking a significant milestone in the economic relations between the two nations. This announcement comes after trade between the two countries reached a record USD 6.4 billion by the end of the 2022/23 financial year, with trade statistics for the ongoing 2023/24 fiscal year already surpassing USD 5.7 billion by December 2023.
Mr. Manoj Verma, an official of the Indian High Commission in Tanzania, made these remarks during the Tanzania/India Business Forum (TIBF) held over the weekend in Arusha. Mr. Verma expressed confidence that Tanzania is poised to become India's largest trading partner in Africa, attributing this achievement to favorable policies that have bolstered trade between the two nations.
India remains the top destination for Tanzanian exports, largely driven by the duty-free tariff scheme extended by India, which allows 98 percent of Tanzanian products to enjoy duty-free access in the Indian market. Mr. Verma emphasized India's significance as Tanzania's premier trade partner, as per Indian statistics.
Highlighting India's substantial investments in Tanzania, Mr. Verma noted that India ranks among the top five investment sources in the country, with investments amounting to $3.93 billion. Over the past year, numerous Indian business delegations have visited Tanzania, contributing to the promotion of bilateral trade and investments across various sectors including hospitals, pharmaceuticals, education, mining, and agro-processing.
Indian investments in Tanzania are set to witness a significant surge with the establishment of the proposed Indian Industrial Park near Dar es Salaam. The Tanzanian government has allocated 1,000 acres of land for this purpose, with several Indian businesses expressing interest in sectors such as pharmaceuticals, agro-processing, infrastructure, and automobiles.
Two years ago, both countries agreed to promote bilateral trade in local currencies through Special Rupee Vostro Accounts (SRVA), aiming to facilitate trade transactions between Indian and Tanzanian banks and businesses.
Speaking on behalf of the Tanzania/India Business Forum, Sameer Gupta highlighted the growing ties between the two nations, citing President Samia Suluhu Hassan's state visit to India in October 2023, during which 14 Memoranda of Understanding (MoUs) were signed across various sectors.
The forum also witnessed expressions of interest from Tanzanian stakeholders, including the Arusha regional business chamber and the Tanzanian chapter of the East African Business Council, advocating for increased partnerships with Indian firms and investors to spur economic growth and create employment opportunities in Tanzania.