India's High Commissioner to Mozambique Rudra Gaurav Shresth handed over the amount to Mozambique's Minister of Trade and Industry yesterday, primarily to purchase wheat.
"The gift from India for purchase of wheat is a gesture of solidarity for a country which we see as one of our most important future partners," External Affairs Ministry Spokesperson Vikas Swarup said.
He said the grant-in-aid was provided in response to a request from Mozambique, which has faced two consecutive years of drought leading to severe difficulties for its people.
India and Mozambique have strong bilateral ties and the relations are on an upswing in the last few years.
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Mozambique is also home to nearly 20,000 people of Indian origin.
Mozambique is also among India's most important economic partners in Africa, and accounts for almost 25 per cent of India's net foreign Direct Investment into Africa.
Mozambique was the first country in mainland Africa that Prime Minister Narendra Modi visited earlier this year.
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