India looks to consolidate East Africa economic partnership amid global supply chain shifts

As global trade patterns undergo significant realignment and supply-chain resilience becomes a strategic priority, India’s economic engagement with East Africa is emerging as an increasingly important pillar of its external economic strategy. These themes formed the core of discussions at a conference organised by leading Indian think tank Chintan Research Foundation (CRF) in New Delhi on Thursday, bringing together policymakers, business leaders, economists, and energy experts.

Participants noted that bilateral trade between India and East Africa has grown steadily to nearly USD 16 billion, with strong growth in imports from the region during 2024–25. However, discussions emphasised that the next phase of engagement must move beyond commodity trade toward deeper industrial integration, regional value chains, clean energy partnerships, and digital connectivity.

A major focus of the deliberations was the growing strategic importance of East Africa in the context of energy transition and critical mineral supply chains. The region’s reserves of lithium, cobalt, copper, and graphite were viewed as significant for India’s long-term manufacturing and clean energy ambitions. Participants stressed that India’s engagement should prioritise local value addition, processing, and industrial partnerships rather than remain limited to resource extraction.


Concerns were also raised over persistent logistical and financing bottlenecks that continue to constrain trade expansion. Industry representatives pointed out that a large share of Indian cargo destined for East Africa still transits through West Asian hubs, adding to costs and vulnerabilities in supply chains. Greater connectivity, improved port infrastructure, and stronger trade-finance mechanisms were identified as critical to unlocking the corridor’s economic potential.

Renewable energy cooperation emerged as another key area of opportunity, with discussions ranging from mini-grids and rooftop solar to grid modernisation and regional power integration. Participants argued that India’s clean energy engagement with East Africa must evolve from project-based cooperation to long-term strategic collaboration.

The African Continental Free Trade Area (AfCFTA) was also seen as a potentially transformative framework for deeper regional integration, although participants cautioned that implementation gaps and uneven institutional readiness remain challenges.

CRF observed that as geopolitical competition intensifies and countries seek trusted economic partnerships, India-East Africa ties are poised to acquire greater strategic and commercial significance in the years ahead.