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 routes into a living diaspora of approximately 55,000–60,000 people of Indian origin resident in Tanzania today.
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 through the 1980s, both nations were united by shared post-colonial ideologies: anti-colonialism, socialism, and South-South cooperation, exemplified by the close friendship between Julius Nyerere and India's leadership.
Today, India is Tanzania's second-largest trading partner in Africa (after China), its largest export market, and consistently ranks among the top five sources of Foreign Direct Investment. The relationship spans trade, infrastructure financing, defence cooperation, education, health, and people-to-people links — making it a genuinely multidimensional strategic partnership.
Key Diplomatic Milestones
Diplomatic Events Summary Table
| Year | Event | Outcome / Significance |
|---|---|---|
| 1961 | India opens Mission in Tanganyika | Pre-independence; one of earliest African missions |
| 1966 | First India–Tanzania Trade Agreement | Formal trade framework established |
| 2003 | MOU on Defence Cooperation signed | Foundational defence partnership |
| July 2016 | PM Modi visits Tanzania | First Indian PM visit in decades; multiple LOCs & agreements; health grants |
| 2022 | Bilateral Defence Cooperation Agreement | Upgraded framework; India-Tanzania-Mozambique trilateral maritime exercise; IWTS gifted |
| July 2023 | India FM visits; IIT Madras Zanzibar MOU | Health, education, pharma MOUs; first overseas IIT campus planned |
| Oct 2023 ⭐ | President Samia's State Visit to India | STRATEGIC PARTNERSHIP DECLARED; 15 agreements signed incl. Rupee trade mechanism & industrial park |
| July 2025 | Tanzania–India Business Forum 2025 | USD 10B trade target set; pharma, agro-processing & ICT focus |
Sources: High Commission of India Dar es Salaam · Ministry of External Affairs India · TICGL Research Compilation
Bilateral Trade & Economic Relations
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 263% increase in just four years — driven by post-COVID recovery, strong demand for Indian petroleum products, and growing Tanzanian commodity exports. Projections based on linear regression of 2020–2025 data point to bilateral trade crossing USD 10 billion by 2026.
At the July 2025 Tanzania-India Business Forum, both governments formally set a target of achieving USD 10 billion in bilateral trade — a target TICGL analysis suggests is achievable by 2026 at the current growth trajectory of ~8–10% per annum.
Bilateral Trade Data Table (2019–2026)
| Year | Bilateral Trade (USD B) | YoY Growth | India Exports to TZ (USD B) | TZ Exports to India (USD B) | Status |
|---|---|---|---|---|---|
| 2019-20 | 2.76 | — | ~1.40 | ~1.36 | Actual |
| 2020-21 | 2.37 | -14.1% | 1.63 | 0.74 | Actual |
| 2021-22 | 4.58 | +93.2% | ~2.80 | ~1.78 | Actual |
| 2022-23 | 6.48 | +41.5% | 3.90 | 2.58 | Actual |
| 2023-24 | 7.91 | +22.1% | 4.62 | 3.29 | Actual |
| 2024 (CY) | 8.60 | +8.7% | ~4.67 | ~3.93 | Actual |
| 2025 (Est.) | ~9.50 | ~+10.5% | ~5.20 | ~4.30 | Estimate |
| 2026 (Proj.) | ~10.22 | ~+7.6% | ~5.60 | ~4.62 | Projection |
Sources: DGCI&S India · High Commission of India Dar es Salaam · TanzaniaInvest. Yellow rows = estimates/projections based on ~10-15% average growth trend. 2026 projection based on linear regression on 2020-2025 data.
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.
The pharmaceutical sector is emerging as a key growth pillar, with Tanzania designated as a prospective regional pharma manufacturing hub for East, Central and Southern Africa — an initiative formalized in the October 2023 Strategic Partnership agreements.
| Product Category | Value (USD B, 2024) | % Share | Trend |
|---|---|---|---|
| Petroleum Products (Refined) | 3.05 | ~65% | Core / Stable |
| Pharmaceuticals & Chemicals | 0.50 | ~11% | ↑ High Growth |
| Motor Vehicles & Auto Parts | 0.40 | ~9% | Growing |
| Machinery & Electrical Equipment | 0.30 | ~6% | Stable |
| Sugar, Textiles & Other | 0.42 | ~9% | Stable |
| TOTAL | ~4.67 | 100% |
Source: OEC World Trade Data · High Commission of India. Total ~USD 4.67B in 2024.
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 rising middle class and increasing demand for health foods. Zanzibar cloves represent a historic trade link that persists to the present day.
Tanzania's total exports to India reached approximately USD 3.93 billion in 2023-24, with gold and minerals accounting for the largest share. Cashew nuts remain a strategically important export, and Tanzania's government is pushing to increase local processing from roughly 10% to 60% of total production — a transformation that could significantly increase export value.
| Product Category | Value (USD B, 2023-24) | Notes | Growth Outlook |
|---|---|---|---|
| Gold & Minerals (Dore) | ~1.50 | Largest export; growing | ↑ Growing |
| Cashew Nuts & Seeds | ~1.00 | Major agricultural export | Stable |
| Pulses (Pigeon Peas, Soybeans) | ~0.50 | India is key buyer | Stable |
| Avocados & Horticultural Products | ~0.30 | Emerging, fast-growing | ↑ High Growth |
| Timber & Precious Stones | ~0.30 | Tanzanite & others | Stable |
| Spices (Zanzibar Cloves) | ~0.13 | Historic trade link | Stable |
| Other Products | ~0.20 | Various | |
| TOTAL | ~3.93 | India = TZ's largest export market |
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 FDI 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 pharmaceuticals. An estimated USD 4.20 billion in cumulative FDI is projected by 2025.
During the October 2023 Strategic Partnership summit, Tanzania set an ambitious 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 specifically for Indian investors — a first of its kind in Tanzania.
| Year | Indian FDI in Tanzania (USD B) | Change | Key Sectors in Focus |
|---|---|---|---|
| 2020 | 2.50 | — | Agriculture, Telecommunications |
| 2022 | 3.65 | ↑ +46% | Energy, Construction, Water Infrastructure |
| 2023 | 3.74 | ↑ +2.5% | Vaccines/Biosciences, Mining, Pharma |
| 2025 (Est.) | ~4.20 | ↑ +12.3% | Agro-Processing, ICT, Industrial Parks |
Source: Tanzania Investment Centre (TIC) · Ministry of External Affairs India. 2025 estimate based on 10-15% annual FDI growth trajectory.
Major Indian Companies in Tanzania
Indian business presence spans multiple strategic sectors. Key highlights include Airtel Tanzania (one of the country's largest telecom operators), three Indian public sector banks, Larsen & Toubro's landmark USD 500 million water infrastructure project, Mahindra & Tata vehicles widespread across commercial and agricultural use, and Hester Biosciences producing veterinary vaccines for the broader East African market.
| Company / Group | Sector | Presence & Notes |
|---|---|---|
| Airtel Tanzania | Telecom | Major mobile operator; millions of subscribers; market leader in several regions |
| Bank of Baroda, Bank of India, Canara Bank | Banking | 3 Indian public-sector banks operational in Tanzania; trade finance, retail banking |
| Tata Motors / Tata Africa | Automotive | Commercial vehicles; Eicher buses widely used in public transport across Tanzania |
| Mahindra & Mahindra / Sonalika | Agriculture | Tractors supplied via LOC; widespread in rural Tanzania — transforming smallholder farming |
| Larsen & Toubro (L&T) | Infrastructure | Lead contractor for USD 500M water LOC project — one of the largest infrastructure contracts in Tanzania |
| Bajaj / TVS / Hero | Two-Wheelers | Motorcycles & three-wheelers (Bajaj-type) dominant in Tanzania's informal transport sector |
| Kamal Group | Steel | Steel manufacturing operations in Tanzania |
| Hester Biosciences | Animal Health | Veterinary vaccines production serving East Africa's livestock sector |
| Kalpataru | Power | Electricity infrastructure and power transmission line projects |
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. These projects have focused almost entirely on water infrastructure, directly impacting the lives of millions of Tanzanians through improved access to clean water.
Beyond infrastructure, India has provided significant humanitarian and health grants: USD 1 million in medicines (2016–2020), a Bhabhatron-II cancer therapy machine at Bugando Medical Centre (Mwanza), 10 ambulances to the Ministry of Health (2023), and over 130,000 science textbooks for secondary schools. India's ITEC programme provides 650 scholarships annually, while ICCR provides 85 cultural scholarships.
LOC Project Portfolio (2013–2022)
| Year | Project | Amount (USD M) | Status |
|---|---|---|---|
| 2013 | Tractors & Agricultural Equipment | 40.0 | Complete |
| 2015 | Water Supply – Dar es Salaam & Chalinze | 178.1 | Complete |
| 2017 | Lake Victoria Pipeline – Tabora, Igunga & Nzega | 268.4 | Complete |
| 2018 | Water Infrastructure – Multiple Towns (L&T) | 500.0 | Ongoing |
| 2022 | Water Supply Rehabilitation – Zanzibar | 92.2 | Near Complete |
| TOTAL | All LOC Projects (2001–2022) | ~1,100+ |
Sources: High Commission of India Dar es Salaam · Ministry of External Affairs India · Exim Bank India