Explore settling trade transactions in local currency: India asks Ethiopia

India has urged Ethiopia to explore possibility of settling bilateral trade transactions in local currency as it will help boost bilateral trade and conserve foreign exchange, an official statement said on Wednesday.

The country has also invited the African nation to collaborate on the Unified Payment Interface (UPI) with Ethswitch of Ethiopia.

These issues were discussed during the sixth session of India-Ethiopia Joint Trade Committee in Addis Ababa from November 6-7.

Both sides also agreed to expeditiously address all issues impeding bilateral trade and facilitate trade promotion between the two countries.

"The Indian side urged Ethiopia to explore the possibility of settlement of trade transactions in local currency which will help boost bilateral trade and conserve foreign exchange," the commerce ministry said.

"The Indian side also requested the Ethiopian side to expedite the early finalization of the Bilateral Investment Treaty," it added.

Ethiopia is one of the fastest growing economies in the African region, with an estimated growth of 6.4 per cent in 2021-22.

Bilateral trade stood at USD 642.59 million in 2022-23. India is the second largest exporter to Ethiopia.

Indian companies are among the top three foreign investors in Ethiopia with existing Indian investment of USD 5 billion. The companies have invested in various sectors like agriculture and floriculture, engineering, plastics, manufacturing, cotton and textiles, water management, pharmaceuticals and healthcare.