Tanzania – India Relations - TICGL | Tanzania Investment and Consultant Group Ltd

Overview & Historical Background

India and Tanzania share one of Africa's oldest and most robust bilateral relationships. Indian merchants — predominantly from Gujarat (Kutch and Kathiawad) — settled along the East African coast, particularly in Zanzibar and Tanganyika, as early as the 19th century. This centuries-long connection evolved from trade caravans and dhow-borne commerce into a modern strategic partnership that today spans trade, defence, digital infrastructure, and healthcare.

India established its Diplomatic Mission in Tanganyika in 1961 — before independence was formally declared — and Tanzania opened its mission in India in 1962. From the 1960s to the 1980s, both nations were united by shared post-colonial ideologies: anti-colonialism, socialism, and South-South cooperation.

Bilateral Agreements Signed at the October 2023 Strategic Partnership Summit
During President Samia Suluhu Hassan's State Visit to India — the most transformative diplomatic milestone in decades, formally elevating the relationship to a Strategic Partnership.

Key Diplomatic Milestones

Year	Event	Outcome / Significance
1961	India opens Mission in Tanganyika	Pre-independence; one of India's earliest African missions
1962	Tanzania opens Mission in India	Formal reciprocal diplomatic ties established
1966	First India–Tanzania Trade Agreement signed	Formal trade framework established
2003	MOU on Defence Cooperation signed	Foundational defence partnership
2016	PM Narendra Modi visits Tanzania (July 9–10)	First Indian PM visit in decades; multiple LOCs & agreements signed
July 2023	IIT Madras Zanzibar MOU	First-ever overseas IIT campus; landmark education cooperation
Oct 2023	President Samia's State Visit to India	Elevated to Strategic Partnership; 15 agreements signed
July 2025	Tanzania–India Business Forum	Pharma, agro-processing, and digital economy identified as next-phase growth sectors

Historical Note: Mahatma Gandhi stopped in Zanzibar and Dar es Salaam on journeys between India and South Africa in the late 19th century. Kiswahili also contains a significant number of loan words from Gujarati and other Indian languages — a linguistic testament to centuries of maritime and mercantile exchange.

Bilateral Trade & Economic Relations

2.1 Trade Growth Overview

India is Tanzania's second-largest trading partner in Africa (after China). Bilateral trade surged from USD 2.37 billion in 2020–21 to USD 8.60 billion in 2024 — a remarkable 263% increase in just four years — driven by post-COVID recovery, strong demand for Indian petroleum products, and growing Tanzanian commodity exports to Indian markets.

Year	Bilateral Trade (USD B)	YoY Growth (%)	India Exports → TZ (USD B)	TZ Exports → India (USD B)	Trade Balance
2019–20	2.76	—	~1.40	~1.36	India +0.04
2020–21	2.37	▼ −14.1%	1.63	0.74	India +0.89
2021–22	4.58	▲ +93.2%	~2.80	~1.78	India +1.02
2022–23	6.48	▲ +41.5%	3.90	2.58	India +1.32
2023–24	~7.50	▲ +15.7%	~4.20	~3.30	India +0.90
2024	8.60	▲ +14.7%	~4.67	~3.93	India +0.74
2025 (Est.)	~9.35	▲ ~+8.7%	~5.10	~4.25	India +0.85
2026 (Proj.)	~10.22	▲ ~+9.3%	~5.60	~4.62	India +0.98

Sources: DGCI&S India; High Commission of India Dar es Salaam; TanzaniaInvest. Italicised rows = estimates/projections based on ~8–10% average growth trend (linear regression on 2020–2025 data).

Dashed trendline based on linear regression model; 2026 projection assumes continued political stability and maintained commodity prices.

Tanzania–India Bilateral Trade Volume (USD Billion)

2019–2026 · Actual + Projected · with Linear Trendline

India Exports vs. Tanzania Exports (USD B)

Stacked bar showing bilateral composition

Trade Balance Trend

India's surplus over Tanzania (USD B)

2.2 India's Major Exports to Tanzania

India's exports to Tanzania are dominated by refined petroleum, which alone accounts for approximately 65% of total exports (USD 3.05 billion in 2024). India's export growth to Tanzania surged by over 124% between November 2024 and 2025, reflecting rapid expansion beyond energy into value-added sectors including pharmaceuticals, motor vehicles, and machinery.

Product Category	Value (USD B, 2024)	% Share	Trend
Petroleum Products (Refined)	3.05	~65%	▲ Growing
Pharmaceuticals & Chemicals	0.50	~11%	▲ Fast Growing
Motor Vehicles & Auto Parts	0.40	~9%	▲ Stable
Machinery & Electrical Equipment	0.30	~6%	▲ Growing
Iron, Steel & Metal Products	0.20	~4%	→ Stable
Textiles & Garments	0.12	~3%	→ Stable
TOTAL	~4.67	100%	▲ +124% (2024-25)

India's Export Composition to Tanzania

By product category — 2024

Source: OEC World Trade Data; High Commission of India. Total ~USD 4.67B in 2024.

Petroleum Products (Refined)65%
Pharmaceuticals & Chemicals11%
Motor Vehicles & Auto Parts9%
Machinery & Electrical Equipment6%
Iron, Steel & Metal Products4%
Textiles, Garments & Others5%

2.3 Tanzania's Major Exports to India

India is the largest market for Tanzanian exports, absorbing commodities that directly support Tanzania's agricultural and mining sectors. Gold dore dominates, followed by cashew nuts, pulses, and horticultural products. The avocado sector is emerging rapidly as a high-growth frontier, driven by India's expanding middle class and health-conscious consumer base.

Product Category	Value (USD B, 2023–24)	Notes
Gold & Minerals (Dore)	~1.50	Largest export; growing steadily
Cashew Nuts & Seeds	~1.00	Major agricultural export
Pulses (Pigeon Peas, Soybeans)	~0.50	India is key buyer
Avocados & Horticultural Products	~0.30	Emerging Fast-growing sector
Timber & Wood Products	~0.25	Stable; regulatory constraints
Fish & Marine Products	~0.18	Nile Perch; Zanzibar seafood
Tobacco & Other Agri	~0.20	Value-added processing potential
TOTAL	~3.93	India = Tanzania's #1 export market

Tanzania's Export Composition to India

By product category — 2023–24

Source: Tanzania Investment Centre; Ministry of Trade Tanzania; DGCI&S India. Total ~USD 3.93B in 2023–24.

Investment Relations (FDI)

India is consistently among the top five sources of Foreign Direct Investment into Tanzania. Cumulative Indian investment reached USD 3.74 billion by 2023, up from USD 2.50 billion in 2020 — a 50% increase in three years. Indian investors span banking, telecommunications, manufacturing, water infrastructure, agriculture, and biosciences.

During the October 2023 Strategic Partnership summit, Tanzania set a target of attracting USD 3 billion in new Indian FDI by 2025 (on top of existing stock), with a dedicated industrial park on the Coast region allocated for Indian investors.

Year	Indian FDI in Tanzania (USD B)	YoY Growth	Key Sectors
2020	2.50	—	Agriculture, Telecommunications
2022	3.65	▲ +46% (2yrs)	Energy, Construction, Water Infrastructure
2023	3.74	▲ +2.5%	Vaccines / Biosciences, Mining, Pharma
2025 (Est.)	~4.20	▲ ~+6%	Agro-Processing, ICT, Industrial Parks
2026 (Proj.)	~4.50	▲ ~+7%	Pharma hub, Digital economy, Renewable energy

Sources: Tanzania Investment Centre (TIC); Ministry of External Affairs India. 2025 estimate based on 10–15% annual FDI growth trajectory.

Cumulative Indian FDI in Tanzania (USD Billion)

2020–2026 Actual & Projected · with Growth Trendline

Trendline based on linear regression; projection assumes continued investment climate improvement and progress on 2023 Strategic Partnership commitments.

3.1 Major Indian Companies Operating in Tanzania

Indian business presence spans multiple strategic sectors. The following companies represent the most significant Indian corporate footprints in Tanzania, driving employment, technology transfer, and economic integration.

Telecommunications

Airtel Tanzania

Major mobile operator with millions of subscribers; key player in Tanzania's digital economy and mobile money sector.

Banking & Finance

Bank of Baroda · Bank of India · Canara Bank

Three Indian public-sector banks operational in Tanzania, supporting trade finance, remittances, and SME lending.

Infrastructure

Larsen & Toubro (L&T)

USD 500M water infrastructure project — one of the largest single Indian investments in Tanzania's public utilities.

Automotive

Tata Motors / Tata Africa

Commercial vehicles and Eicher buses widely used across Tanzania's transport sector; strong rural penetration.

Agriculture

Mahindra & Mahindra / Sonalika

Tractors supplied via Lines of Credit; widespread adoption in rural Tanzania, supporting food production.

Healthcare / Biotech

Hester Biosciences

Veterinary vaccines production for East Africa from Tanzania base; supports livestock sector across the region.

Pharmaceuticals

Indian Pharma Companies (Multiple)

Supplying generic medicines and setting up local manufacturing; Tanzania targeted as regional pharma hub under 2023 MOU.

Retail / Trade

Gujarati Business Community

~40,000-strong diaspora concentrated in Dar es Salaam, Arusha, and Zanzibar; spanning wholesale, retail, real estate, and manufacturing.

Indian FDI in Tanzania — Sectoral Distribution (2024 Est.)

% share by major sectors

Development Partnership & Lines of Credit (LOC)

Tanzania is the top African recipient of Indian development financing. Between 2001 and 2022, India extended over USD 1.1 billion in Lines of Credit (LOC) to Tanzania — all channeled through the Export-Import Bank of India (Exim Bank). These projects have focused almost entirely on water infrastructure, directly benefiting millions of Tanzanians in Dar es Salaam, Zanzibar, and towns in Central Tanzania including Tabora, Igunga, and Nzega.

$1.1B+

Total Indian Lines of Credit to Tanzania (2001–2022)
Tanzania is the single largest African recipient of Indian LOC financing — all delivered through the Exim Bank of India and focused on water infrastructure and agricultural mechanisation.

4.1 LOC Project Portfolio — Full Record

2013

Tractors & Agricultural Equipment Supply

USD 40M

✓ Complete

2015

Water Supply — Dar es Salaam & Chalinze

USD 178.1M

✓ Complete

2017

Lake Victoria Pipeline — Tabora, Igunga & Nzega

USD 268.4M

✓ Complete

2018

Water Infrastructure — Multiple Towns (Larsen & Toubro)

USD 500M

● Ongoing

2022

Water Supply Rehabilitation — Zanzibar

USD 92.2M

● Near Complete

TOTAL · 2001–2022

All LOC Projects Combined

USD 1,100M+

5 Projects · 4 Complete

Year	Project	Amount (USD M)	Contractor	Beneficiaries	Status
2013	Tractors & Agricultural Equipment	40.0	Mahindra / Sonalika	Smallholder farmers across Tanzania	Complete
2015	Water Supply – Dar es Salaam & Chalinze	178.1	Indian consortium	Dar es Salaam metro population	Complete
2017	Lake Victoria Pipeline – Tabora, Igunga & Nzega	268.4	Indian consortium	~1M+ residents in Central Tanzania	Complete
2018	Water Infrastructure – Multiple Towns	500.0	Larsen & Toubro (L&T)	Multiple urban centres	Ongoing
2022	Water Supply Rehabilitation – Zanzibar	92.2	Indian contractor	Zanzibar island population	Near Complete
TOTAL	All LOC Projects (2001–2022)	~1,100+	Multiple	Millions of Tanzanians	5 Projects

Sources: High Commission of India Dar es Salaam; Ministry of External Affairs India; Exim Bank India.

Indian LOC Financing in Tanzania — Project Breakdown (USD Million)

By project · Horizontal bar · Chronological order 2013–2022

Cumulative LOC Disbursement Over Time

Running total of Indian development credit to Tanzania (USD M)

LOC Sectoral Focus — Tanzania (% of Total)

Overwhelming focus on water infrastructure

4.2 Humanitarian & Technical Grants (Beyond LOC)

Beyond the formal LOC infrastructure programme, India has delivered a series of humanitarian and technical assistance grants to Tanzania spanning health, education, and defence — reflecting the breadth of the bilateral partnership beyond pure trade and investment.

💊 USD 1M medicines grant (2016–2020)

☢️ Bhabhatron-II cancer therapy machine — Bugando Medical Centre, Mwanza

🚑 10 ambulances to Ministry of Health (2023)

📚 130,000+ science textbooks for secondary schools

🤖 AI education curriculum development team (2023)

🎓 650 ITEC + 85 ICCR scholarships annually

🌊 Infantry Weapon Training Simulator gifted to Tanzania People's Defence Force

Education Milestone: IIT Madras Zanzibar — the world's first overseas IIT campus — is under development following the MOU signed in July 2023. This is a historic milestone in India's academic outreach and positions Zanzibar as a hub for STEM education in East Africa.

Diplomatic & Political Relations

India and Tanzania have maintained an unbroken thread of high-level diplomatic engagement since 1961. The relationship was formally upgraded to a Strategic Partnership at the October 2023 State Visit, where 15 agreements were signed — including agreements on water, energy, education, defence, and a historic local-currency trade mechanism.

Year	Event	Outcome / Significance
1961	India opens Mission in Tanganyika	Pre-independence; one of India's earliest African missions
1962	Tanzania opens Mission in India	Reciprocal diplomatic ties established
1966	First India–Tanzania Trade Agreement	Formal trade framework; foundation for all future commercial ties
2003	MOU on Defence Cooperation	Foundational defence partnership established
2016	PM Narendra Modi State Visit (July 9–10)	First Indian PM visit in decades; multiple LOCs & agreements; health grants
2022	Bilateral Defence Cooperation Agreement (Upgraded)	Enhanced defence framework; India-Tanzania-Mozambique trilateral maritime exercise
Jul 2023	India FM visits Tanzania; TZ Health Minister visits India	Health, education, and pharma MOUs; IIT Madras Zanzibar MOU signed
Oct 2023	President Samia's State Visit to India	STRATEGIC PARTNERSHIP DECLARED · 15 agreements signed · Rupee trade mechanism launched
Jul 2025	Tanzania–India Business Forum 2025	USD 10B trade target set; pharma hub, agro-processing & ICT as next-phase focus

5.1 Institutional Mechanisms & Joint Commissions

Five key institutional mechanisms underpin the bilateral relationship, providing structured forums for cooperation across economic, technical, defence, and legislative dimensions:

#	Mechanism / Forum	Mandate	Status
1	India–Tanzania Joint Commission on Economic, Technical & Scientific Cooperation	Overall bilateral economic and technical agenda	Active
2	Joint Trade Committee	Bilateral trade facilitation, tariff and market access discussions	Active
3	Joint Working Groups — Water, Counter-Terrorism, Hydrography	Technical coordination on water infrastructure, security, ocean mapping	Active
4	Joint Defence Cooperation Committee	Defence training, equipment, naval cooperation, intelligence	Active
5	Parliamentary Friendship Groups	Legislature-to-legislature ties; people-centred diplomacy	Active (both legislatures)

High-Level Diplomatic Engagements — India–Tanzania (Indicative Count)

Number of recorded bilateral meetings, visits & agreements by period

Strategic Cooperation Areas

The 2023 Strategic Partnership declaration formalized ten major cooperation pillars. Scholarships are a particularly significant dimension: India provides 650 ITEC and 85 ICCR scholarships annually to Tanzanian students, supporting training in fields from public health to ICT. The establishment of IIT Madras Zanzibar is a historic milestone in India's academic outreach.

💧

Water Infrastructure

USD 1.1B+ LOC projects; ongoing L&T programme

⚡

Energy & LNG

India interested in TZ LNG; renewable energy discussions

🎓

Education & IIT

IIT Madras Zanzibar — world's first overseas IIT campus

🛡️

Defence & Security

5-yr defence roadmap; trilateral maritime exercises

💊

Pharmaceuticals

Tanzania as regional pharma hub for East/Central Africa

🌾

Agriculture

LOC tractors; SIDO-NSIC partnership; avocado value chain

💻

Digital & ICT

Rupee Vostro accounts; fintech; AI education curriculum

🏭

Industrial Parks

Dedicated Indian industrial zone on Tanzania's Coast region

🏥

Health & Medical

Cancer machines; ambulances; medicines; health MOUs

🌍

People-to-People

Diaspora ties; SVCC cultural centre; Gita Mahotsav partnership

Sector	Key Initiatives & Data	Status
Water Infrastructure	~USD 1.1B in LOC projects; Lake Victoria pipeline serving >1M people; L&T ongoing USD 500M contract	4 complete · 1 ongoing
Pharmaceuticals	Regional pharma manufacturing hub for East, Central & Southern Africa; MOU Oct 2023	MOU signed · Planning
Education / IIT	IIT Madras Zanzibar — first-ever overseas IIT campus globally; STEM focus	MOU Jul 2023 · Under development
Scholarships (ITEC/ICCR)	650 ITEC + 85 ICCR scholarships annually; training in public health, ICT, governance, agriculture	Active · Ongoing annually
Defence & Maritime	5-year Defence Roadmap; trilateral exercises with Mozambique (2022 & 2024); IWTS gifted to TPDF	Active · Annual naval visits
Agriculture	LOC tractors; SIDO-NSIC partnership; avocado value chain; cashew processing target (60% local)	Ongoing engagement
Health & Medical	USD 1M medicines (2016–20); Bhabhatron cancer machine (Mwanza); 10 ambulances (2023)	Multiple grants delivered
Digital / Fintech	Special Rupee Vostro Accounts; bilateral local-currency trade mechanism	Launched Oct 2023
Energy (LNG)	India interest in Tanzania's LNG sector; biofuels discussions ongoing	Negotiations ongoing
Industrial Park	Dedicated industrial zone on Tanzania Coast allocated for Indian investors (Oct 2023 agreement)	Agreed · Site allocated

Strategic Cooperation — Estimated Value / Impact Weight by Sector

Composite score based on financial value, strategic importance & depth of engagement

6.1 Maritime & Defence Security

India views Tanzania as a key Indo-Pacific partner. Indian Naval Ships (INS) have conducted regular port calls in Dar es Salaam and Zanzibar, joint EEZ patrols, and bilateral maritime exercises. The landmark India-Tanzania-Mozambique trilateral maritime exercise in 2022 (with a second iteration in 2024) reflects India's expanding Indian Ocean strategy.

India gifted an Infantry Weapon Training Simulator (IWTS) to the Tanzania People's Defence Force (TPDF), and the two countries operate a 5-year Defence Cooperation Roadmap covering training, equipment, intelligence sharing, and capacity building.

Defence Milestone

Trilateral Maritime Exercise 2022 & 2024

India – Tanzania – Mozambique · Joint EEZ patrols & naval exercises in the Indian Ocean — a landmark signal of India's growing Indo-Pacific maritime security architecture in East Africa.

6.2 Special Rupee–Shilling Currency Trade Mechanism

A landmark financial innovation from the October 2023 summit: the authorisation of Special Rupee Vostro Accounts for Tanzanian correspondent banks. This enables bilateral trade to be settled in Indian Rupees (INR) and Tanzanian Shillings (TZS) — reducing dollar dependency, cutting transaction costs, and deepening financial integration between the two economies.

Feature	Detail	Benefit
Mechanism Type	Special Rupee Vostro Accounts	Tanzanian banks hold INR accounts at Indian correspondent banks
Launched	October 2023 (State Visit)	Immediate operationalisation agreed
Currencies	Indian Rupee (INR) & Tanzanian Shilling (TZS)	Eliminates USD as intermediary for bilateral settlements
Impact on Costs	Estimated 2–4% reduction in transaction costs	Lower costs for exporters and importers on both sides
Strategic Value	Reduces dollar dependency; enhances financial sovereignty	Deepens monetary integration; supports USD 10B trade target

Context: Tanzania is one of only a handful of African countries to establish this type of local-currency trade mechanism with India — reflecting the elevated Strategic Partnership status and India's broader push to internationalise the Rupee across emerging market trade routes.

Indian Scholarships to Tanzania — Annual (2024)

ITEC (technical) + ICCR (cultural) breakdown

Strategic Partnership Agreements — Oct 2023

15 agreements by thematic sector

People-to-People Ties & Diaspora

Tanzania hosts approximately 40,000 people of Indian origin, primarily from Gujarat. An additional 15,000–20,000 Indian citizens (holding Indian passports) are resident in Tanzania — making the total Indian community roughly 55,000–60,000 strong. This diaspora, concentrated in Dar es Salaam, Arusha, Mwanza, and Zanzibar, is deeply embedded in Tanzanian commerce and professional life.

~40K

People of Indian Origin

Primarily Gujarati; long-settled

15–20K

Indian Citizens (Active Passport)

Resident in Tanzania

55–60K

Total Indian Community

Combined (PIO + NRI)

Key Cities

Dar es Salaam · Arusha · Mwanza · Zanzibar

Dimension	Data / Detail	Significance
People of Indian Origin (PIO)	~40,000 (primarily Gujarati — Kutch & Kathiawad origin)	Multi-generational presence; core of business community
Indian Citizens (NRI)	15,000–20,000 (active Indian passport holders)	Recent migrants; professional and business sectors
Cultural Institutions	Swami Vivekananda Cultural Centre (SVCC), Dar es Salaam	Yoga, Hindi, music classes; cultural diplomacy hub
2024 Cultural Honour	Tanzania designated partner country — International Gita Mahotsav, Kurukshetra	Significant diplomatic-cultural recognition
ITEC Scholarships	650 per year to Tanzanian students	Technical training in India; builds professional networks
ICCR Scholarships	85 per year to Tanzanian students	Cultural and academic exchange; university placements
Historical Link — Gandhi	Mahatma Gandhi stopped in Zanzibar & Dar es Salaam (late 19th century)	Historical connection; part of shared Indian Ocean heritage
Linguistic Heritage	Kiswahili contains significant Gujarati loanwords	Evidence of centuries of maritime and mercantile exchange

Indian Community in Tanzania — Composition

People of Indian Origin vs. NRI Citizens

Diaspora Geographic Concentration

Estimated % distribution across Tanzanian cities

Data-Driven Outlook & Projections to 2026

Based on historical growth data (2020–2025) and applying a conservative linear regression model with ~8–10% annual growth, the following projections are derived. These assume continued political stability, maintained global commodity prices, and progress on the 2023 Strategic Partnership commitments.

Methodology: Linear regression on 2019–2025 data with cross-check against sector growth forecasts (IMF, World Bank, TIC). Exchange rate applied: USD 1 = TZS 2,500.

$10.22B

Bilateral Trade

+~9% p.a.

$5.60B

India Exports → TZ

Pharma, energy

$4.62B

TZ Exports → India

Gold, cashews, agri

$4.50B

Indian FDI in TZ

Agro, ICT, energy

TZS 25.5T

Trade (TZS equiv.)

USD 1 = TZS 2,500

Indicator	2022–23 (Actual)	2024 (Actual)	2025 (Est.)	2026 (Projected)	Growth Driver
Bilateral Trade	USD 6.48B	USD 8.60B	~USD 9.35B	USD 10.22B	~+8–10% p.a.
India's Exports to Tanzania	USD 3.90B	~USD 4.67B	~USD 5.10B	~USD 5.60B	Pharma, energy, vehicles
Tanzania's Exports to India	USD 2.58B	~USD 3.93B	~USD 4.25B	~USD 4.62B	Gold, cashews, agri commodities
Indian FDI in Tanzania	USD 3.65B	~USD 3.95B	~USD 4.20B	~USD 4.50B	Agro-processing, ICT, energy
Trade (TZS equivalent)	~TZS 16.2T	~TZS 21.5T	~TZS 23.4T	~TZS 25.5T	Currency & trade volume growth
Indian Diaspora in TZ	~55,000	~57,000	~59,000	~61,000	Professional migration, business expansion

Tanzania–India Key Indicators — Historical & 2026 Projections (USD Billion)

Bilateral Trade · India Exports · TZ Exports · Indian FDI · All with trendlines

Projections based on linear regression; assume ~8–10% annual growth, continued political stability, and Strategic Partnership progress.

8.1 High-Growth Frontier Sectors Driving the Next Phase

Three high-growth sectors identified at the July 2025 Tanzania-India Business Forum are expected to drive the next phase of bilateral growth:

Next-Phase Growth Sectors — Potential Contribution

Estimated additional bilateral value by 2028 (USD B)

Tanzania–India Trade Growth vs. Target

Actual trajectory vs. USD 10B official target

Sector	Tanzania's Role	Key Initiative	Projected Value by 2028	Status
Pharmaceuticals	Regional pharma hub for East, Central & Southern Africa	Joint manufacturing MOU Oct 2023; Indian pharma investment	~USD 0.8–1.2B	MOU signed · Planning
Agro-Processing	Tanzania targets 60% local cashew processing; pulses & horticulture	SIDO-NSIC partnership; value-chain investment from India	~USD 0.6–1.0B	Ongoing engagement
ICT & Digital	Tech partnerships, fintech, digital infrastructure	Rupee Vostro accounts; IIT Madras Zanzibar; AI curriculum	~USD 0.4–0.7B	Active build-out

Research Sources: High Commission of India (Dar es Salaam) · Ministry of External Affairs India · Tanzania Investment Centre (TIC) · OEC World Trade Data · DGCI&S India · TanzaniaInvest · Chatham House Africa · ORF India · World Bank · IMF · Exim Bank India · TICGL Research Division · User-provided Muhtasari document (2025)

Key Takeaways & Summary Analysis

This section synthesises the most consequential findings from across the research report, providing analysts, policymakers, investors, and business leaders with a concise reference to the state and trajectory of Tanzania–India bilateral relations entering 2026.

📈

Trade Has Tripled in Four Years

Bilateral trade surged from USD 2.37 billion in 2020–21 to USD 8.60 billion in 2024 — a 263% increase in just four years. The relationship is on track to breach the official USD 10 billion target by 2026.

263% growth · 2020→2024

🤝

Strategic Partnership is a Turning Point

The October 2023 elevation to Strategic Partnership — with 15 agreements signed — marks the most transformative diplomatic moment in the 60+ year bilateral relationship. It unlocks structured cooperation across defence, pharma, digital, and education.

15 agreements · Oct 2023

💧

India is Tanzania's Development Finance Champion

With USD 1.1 billion in LOC water infrastructure projects, India has funded more public utility development in Tanzania than any other single bilateral partner. Over 1 million Tanzanians benefit directly from these water projects.

USD 1.1B LOC · 5 projects

🏭

FDI is Diversifying Beyond Infrastructure

Cumulative Indian FDI reached USD 3.74 billion by 2023, with the investment mix shifting from infrastructure into pharmaceuticals, agro-processing, ICT, and industrial park development — signalling a maturation of the economic relationship.

USD 3.74B FDI · +50% since 2020

🌾

Tanzania is India's Primary Commodity Supplier

India is Tanzania's single largest export market, absorbing USD 3.93 billion in gold, cashews, pulses, and emerging commodities such as avocados. Tanzania's export diversification to India is accelerating, reducing commodity concentration risk.

USD 3.93B TZ→India exports

💊

Pharmaceuticals & ICT are the Next Growth Frontier

Three sectors — pharma, agro-processing, and ICT — were identified at the July 2025 Tanzania-India Business Forum as the engines of the next USD 1.5–3 billion in bilateral value creation, with Tanzania positioned as a regional pharmaceutical hub.

~USD 2–3B next-phase potential

🎓

IIT Madras Zanzibar is a Historic Academic Milestone

The world's first overseas IIT campus, established in Zanzibar under the July 2023 MOU, is a landmark in South-South academic cooperation and positions Tanzania as an emerging STEM education hub for East and Central Africa.

World's 1st overseas IIT

💱

Local Currency Trade Reduces Dollar Dependency

The Rupee–Shilling Vostro Account mechanism launched in October 2023 enables direct INR-TZS bilateral settlement, cutting transaction costs by an estimated 2–4% and deepening financial sovereignty for both economies.

Est. 2–4% cost reduction

🌊

Defence & Maritime Ties are Deepening Rapidly

The India-Tanzania-Mozambique trilateral maritime exercise (2022, 2024) signals India's growing Indian Ocean security architecture. The 5-year Defence Roadmap and IWTS donation to the TPDF mark a new phase of strategic-military convergence.

Trilateral exercises · 5-yr roadmap

Tanzania–India Bilateral Relationship Scorecard

Composite assessment across 8 dimensions: current depth vs. potential by 2028 (score out of 10)

Bilateral Value Creation — By Pillar (2024)

Estimated economic value contribution (USD B, rounded)

Tanzania–India Growth vs. Africa Benchmark

Indexed growth comparison (base 100 = 2019)

Research Methodology & Data Sources

This report was developed using a rigorous mixed-methods research framework combining quantitative trade and investment data analysis with qualitative assessment of diplomatic, policy, and strategic developments. All quantitative projections employ linear regression models validated against sector-specific growth forecasts from multilateral institutions.

📊

Quantitative Data Analysis

Trade flow data from DGCI&S India, OEC World, and TIC Tanzania. FDI stock data from Ministry of External Affairs India and TIC. All figures cross-validated across minimum two independent sources.

📉

Linear Regression Modelling

Projections use OLS linear regression on 2019–2025 actual data. Conservative growth assumption: 8–10% annual. Cross-checked against IMF, World Bank, and TIC sector forecasts. Exchange rate: USD 1 = TZS 2,500.

📋

Policy & Diplomatic Analysis

Review of official diplomatic communiqués, agreement texts, High Commission press releases, Ministry of External Affairs India statements, and Tanzania Presidential Office communications (2020–2025).

🔍

Triangulation & Validation

All key data points triangulated across at least three independent sources. Estimates clearly labelled. Projections presented with explicit methodology and assumptions disclosed for full transparency.

🏛️

Institutional Data

Primary data from High Commission of India (Dar es Salaam), Tanzania Investment Centre, Exim Bank India, and Muhtasari briefing document (2025) provided by High Commission. Supplemented by Chatham House and ORF analysis.

🗓️

Data Coverage Period

Historical data covers 2019–2025. Projections extend to 2026–2028. Report finalised February 2026. TICGL Research Division review process: internal peer review by two senior economists prior to publication.

Primary Data Sources

🇮🇳

High Commission of India, Dar es Salaam

Official Diplomatic Source · Primary

🏛️

Ministry of External Affairs, India

Government Data · Trade & Agreements

📦

DGCI&S India

Directorate General of Commercial Intelligence

🇹🇿

Tanzania Investment Centre (TIC)

Official FDI & Investment Data

🌐

OEC World Trade Data

Global Trade Analytics Platform

🏦

Exim Bank of India

LOC Project Finance Data

🌍

World Bank & IMF

Macroeconomic & Sector Forecasts

📰

TanzaniaInvest

Investment & Business Intelligence

🔬

Chatham House Africa Programme

Policy Research & Analysis

📖

Observer Research Foundation (ORF India)

India-Africa Relations Research

📄

Tanzania Ministry of Trade

Export & Commodity Data

📊

Muhtasari Briefing Document (2025)

High Commission Internal Brief

How to Cite This Report

Suggested Academic / Professional Citation

Kahyoza, B. F., & Bhuzohera, A. (2026). Tanzania–India Relations: A Comprehensive Data-Driven Research Report. Tanzania Investment and Consultant Group Ltd (TICGL). Dar es Salaam, Tanzania. Retrieved from https://ticgl.com/tanzania-india-relations/

All data in this report is subject to revision as official statistics are updated. TICGL takes no responsibility for decisions made solely on the basis of projections contained herein. For commissioned research or data queries, contact TICGL Research Division via ticgl.com/dashboard.

TICGL

| Economic Consulting Group

Tanzania – India Relations

Overview & Historical Background

Key Diplomatic Milestones

Bilateral Trade & Economic Relations

2.1 Trade Growth Overview

2.2 India's Major Exports to Tanzania

2.3 Tanzania's Major Exports to India

Investment Relations (FDI)

3.1 Major Indian Companies Operating in Tanzania

Development Partnership & Lines of Credit (LOC)

4.1 LOC Project Portfolio — Full Record

4.2 Humanitarian & Technical Grants (Beyond LOC)

Diplomatic & Political Relations

5.1 Institutional Mechanisms & Joint Commissions

Strategic Cooperation Areas

6.1 Maritime & Defence Security

6.2 Special Rupee–Shilling Currency Trade Mechanism

People-to-People Ties & Diaspora

Data-Driven Outlook & Projections to 2026

8.1 High-Growth Frontier Sectors Driving the Next Phase

Key Takeaways & Summary Analysis

Research Methodology & Data Sources

Primary Data Sources

How to Cite This Report

Meet the TICGL Research Team

Access TICGL's Full Suite of Tanzania Economic Intelligence

Quick Links

Upcoming Events

Insights

Contact Us

Overview & Historical Background

Key Diplomatic Milestones

Bilateral Trade & Economic Relations

2.1 Trade Growth Overview

2.2 India's Major Exports to Tanzania

2.3 Tanzania's Major Exports to India

Investment Relations (FDI)

3.1 Major Indian Companies Operating in Tanzania

Development Partnership & Lines of Credit (LOC)

4.1 LOC Project Portfolio — Full Record

4.2 Humanitarian & Technical Grants (Beyond LOC)

Diplomatic & Political Relations

5.1 Institutional Mechanisms & Joint Commissions

Strategic Cooperation Areas

6.1 Maritime & Defence Security

6.2 Special Rupee–Shilling Currency Trade Mechanism

People-to-People Ties & Diaspora

Data-Driven Outlook & Projections to 2026

8.1 High-Growth Frontier Sectors Driving the Next Phase

Key Takeaways & Summary Analysis

Research Methodology & Data Sources

Primary Data Sources

How to Cite This Report

Meet the TICGL Research Team

Found This Analysis Valuable?

Access TICGL's Full Suite of Tanzania Economic Intelligence

Quick Links

Upcoming Events

Insights

Contact Us