Strengthening bilateral Relations: A Multifaceted Approach

India and Angola are solidifying their relationship through a series of agreements spanning trade, defense, culture, and traditional medicine. These developments signal a deepening partnership between the two nations, with meaningful implications for both economies.

Key Agreements Signed

Several key agreements were formalized recently, demonstrating the commitment of both countries to enhanced collaboration:

• Traditional Medicine: memoranda of Understanding were signed to foster collaboration in Ayurveda and other traditional medicine systems, reflecting a growing global interest in choice healthcare practices.
• Cultural Exchange: A cultural cooperation program for 2025-2029 was established, aiming to promote mutual understanding and recognition of each other’s cultural heritage.
• International Solar Alliance (ISA): Angola ratified the framework agreement of the International Solar Alliance (ISA), becoming the 123rd member. This move underscores Angola’s commitment to sustainable energy and aligns with global efforts to combat climate change. The ISA, an initiative spearheaded by India, aims to promote solar energy deployment across member countries.

Defense Cooperation and Financial Assistance

The Indian government has approved a ample credit line of $200 million USD for Angola, specifically earmarked for defense acquisitions. This financial assistance highlights the growing strategic partnership between the two countries in the defense sector.

High-Level Meetings and Investment Promotion

Prior to the signing of these agreements, Angolan President João Lourenço engaged in discussions with Indian Prime Minister Narendra modi and Foreign Minister Subrahmanyan Jaishankar. These high-level meetings underscore the importance both nations place on this bilateral relationship.

President Lourenço is scheduled to participate in a business event aimed at boosting investment and commercial ties between Angola and India. This event seeks to attract Indian businesses to explore opportunities in Angola and vice versa.

Trade and Economic Ties: A Flourishing Partnership

Bilateral trade between India and Angola has witnessed significant growth,reaching $4.192 billion USD during the 2023-2024 period, according to New Delhi. Cooperation in capacity progress and defense has also expanded in recent years.

Energy Sector Dominance

The energy sector remains a cornerstone of the India-Angola relationship. Hydrocarbons, primarily crude oil and liquefied natural gas, constitute approximately 90% of the total bilateral trade. India is Angola’s second-largest commercial partner, accounting for about 10% of Angola’s external exchange.

Hydrocarbons represent 90 percent of total bilateral trade, mainly in crude oil and liquefied oil imports…

angolan Authorities

Angola has consistently been among the top six suppliers of liquefied natural gas to India over the past five years.Indian exports to Angola include refined oil products, pharmaceuticals, chemicals, engineering goods, automobiles, plastics, and food products.

Indian Businesses in Angola: A Diverse Presence

Approximately 200 Indian companies have established a presence in Angola, operating across various sectors, including:

• Plastics
• Metals
• Diamond polishing
• Pharmaceuticals
• Healthcare (hospitals)
• Cement manufacturing

Lines of Credit for Development Projects

The Indian government, through the Exim Bank, has extended three lines of credit to Angola, totaling $85 million USD. these funds are allocated to support critical infrastructure and industrial development projects, including railway rehabilitation, the creation of an industrial park, and the implementation of a textile project.