India-Tanzania trade reaches new heights

DAR ES SALAAM: INDIA-Tanzania bilateral trade has soared to 7.9 billion US dollars in the 2023/2024 financial year, marking a 22 per cent growth over the previous year.

This growth has elevated Tanzania to the position of India’s second-largest trade partner in Africa, up from the third position last year.

This was revealed by the Indian High Commission Charge d’Affaires, Mr Manoj Verma recently in Dar es Salaam.

Mr Verma said 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 have surged by 29.5per cent, reaching 3.29 billion US dollars, thereby making India the largest export destination for Tanzania,” he explained.

“This has become possible due to favourable policies bolstering trade,” he added.

He said according to TRA data for 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 per cent.

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Mr Verma noted that TRA data shows the balance of trade between India and Tanzania has shifted favourably towards Tanzania, improving by 435.51 million US dollars which indicates a balanced and robust growth in bilateral trade.

He pointed out that India remains the top destination for Tanzanian exports, boosted by the duty-free tariff scheme extended by India. Under the scheme, 98 per cent of Tanzanian products are enjoying duty free access in the Indian market.

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

According to Mr Verma, India is among the top five investment sources in Tanzania, with investment worth 3.93 billion US dollars.

In the past year alone, over a dozen Indian business delegations have visited Tanzania, contributing to the promotion of bilateral trade and investments. Indian investments in Tanzania span key sectors such as hospitals, pharmaceuticals, animal vaccines, education, mining, and Agro-processing, among others.

He added that his country’s investments are set to increase significantly with the establishment of the proposed Indian Industrial Park.

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The government of Tanzania has already identified 1,000 acres of land near Dar es Salaam for the facility. And a number of Indian businesses have already expressed interest to invest in pharmaceuticals, agro-processing, infrastructure, and automobiles.

Two years ago, the two countries agreed to promote bilateral trade in local currencies – Indian rupee and Tanzanian shilling – through Special Rupee Vostro Accounts (SRVA).

It is believed the innovative approach would encourage Indian and Tanzanian banks and businesses to boost trade transactions.