Abstract

Abstract:India andEthiopia have a very long history of trade relationships that are in future,projected to be getting stronger. Ethiopia is one of the fastest growingeconomies in the world, with yearly growth rates far above the world average.There are definitely huge opportunities and scope of trade expansion betweenthe two nations, but there are many challenges facing the two nations that arestopping them from achieving their full potential.                                                                           India-Ethiopia relations feature in as a prime example of growingSouth-South trade relations; especially in the context of a country like Ethiopia,which is one of the poorest in the world, trading with India, which also isalso having a low GDP per capita. However, what can also be observed is agrowing rise of China in it trade with Ethiopia. This has left India a distantsecond place in terms of Ethiopia’s foreign trade with Asian countries. Counteringthis fierce rivalry and re-emergence of ancient trade ties between the twonations are the main topics explored in this paper. What this paper seeks toestablish is a possible path that two very important regional nations, withvery similar problems economically and socially should take in order to furtherstrengthen their ties with each other, especially in the context of a growingneo-colonialism in Africa being driven primarily by China.

Keywords – India, Ethiopia, internationaltrade, South-South cooperation, China, Africa