Tanzania and India Forge Stronger Economic Ties, Aim to Boost Bilateral Trade to $10 Billion
Tanzania and India have renewed their commitment to strengthening economic relations, setting an ambitious target to grow bilateral trade from $7 billion to $10 billion in the near future.
The bold economic vision was unveiled during the Tanzania–India Business Forum, bringing together key government officials, investors, and business leaders from both nations. The government is implementing comprehensive economic reforms and strategic initiatives designed to attract investment and enhance trade volumes.
“Our vision is to double our trade volume with India,” said the Deputy Minister for Industry and Trade. “This is a concrete plan supported by policy reforms and sectoral commitment.” Significant reforms include eliminating 378 nuisance taxes, streamlining regulatory processes, and establishing the Tanzania Special Economic Zones Authority to facilitate investment.
Priority sectors for investment include information and communication technology, agro-processing, pharmaceuticals, automotive manufacturing, and infrastructure development. Tanzania’s strategic geographical location offers a critical trade gateway to East and Southern Africa.
Cumulative Indian foreign direct investment in Tanzania has reached $4.1 billion between 1997 and 2025, with strong interests in tourism, services, and manufacturing. The pharmaceutical sector is particularly significant, with India supplying over 85 percent of Tanzania’s pharmaceutical imports and 60 percent of medical equipment.
Special economic zones in Dar es Salaam, Bagamoyo, Dodoma, and Mwanza now offer attractive incentives and simplified procedures for investors targeting regional markets. The initiative aims to position Tanzania as an increasingly appealing destination for foreign investment.
The strategic partnership signals a promising future of economic collaboration and mutual growth between Tanzania and India.
