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India and Tanzania plan to expand trade in local currencie

Home > Blog > Financial > India and Tanzania plan to expand trade in local currencie

India and Tanzania plan to expand trade in local currencie

Tanzanian President Samia Suluhu Hassan held talks with Indian Prime Minister Narendra Modi in New Delhi to strengthen trade via local currencies.

Win-win economic agreement between India and Tanzania

Indian Prime Minister Narendra Modi and Tanzanian President Samia Suluhu Hassan recently expressed their desire to expand bilateral trade using local currencies, according to a joint statement issued after their meeting in the Indian capital, New Delhi.

The Reserve Bank of India has cleared the way for trade in local currencies, namely the Indian rupee and the Tanzanian shilling. This agreement will enable authorized banks in India and Tanzania to coordinate, the statement issued by the Indian Ministry of External Affairs said, adding that both parties have agreed to continue trade. Consultations will continue to address any concerns and ensure the sustainability of this economic partnership.

At the end of the meeting, it was also reported that both sides had agreed to increase the volume of bilateral trade and directed their respective officials to explore new areas of business.

State visit to boost the local economy

Samia Suluhu Hassan made a state visit to India from October 8-10 at the invitation of Indian President Droupadi Murmu. She met with Indian Prime Minister Narendra Modi and signed several economic agreements.

Modi said he had an « excellent meeting » with President Samia, during which the two leaders reviewed the overall relationship between India and Tanzania.

« Our nations have decided to work together to develop a five-year roadmap in the defense sector. This will benefit military training, maritime cooperation, capacity building, and the defense industry », he said.

Tanzania and India in figures

Tanzania and India are both major commodity producers with export-oriented economies.

In 2022, Tanzania produced:

  • 9 million tons of maize
  • 5 million tons of cassava (12th largest producer in the world)
  • 8 million tons of sweet potatoes (4th world producer, just behind China, Malawi and Nigeria)
  • 4 million tons of bananas (10th world producer, 13th plantain producer)
  • 3 million tons of rice

According to the IMF, by 2022 India will be the 5th largest economy in the world in current dollars, with a gross domestic product (GDP) of USD 3,530 billion, with tourism, industry, and agriculture being among India’s most important sectors.

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