Shri Anand Sharma, Union Minister of Commerce and Industry during the bilateral meeting with Mr. Hailemariam Desalegn, Deputy Prime Minister and foreign Minister of Ethiopia here today, expressed satisfaction at the impressive growth in bilateral trade, which has grown from US $ 83 million in the year 2005-06 to US $ 272 million in 2009-10, registering a growth of 227% in the last 4 years. He informed that India's exports to Ethiopia have increased from US $ 74 million in 2005 - 2006 to US $ 253 million in 2009- 2010, and India's imports from Ethiopia have grown from US $ 8 million in 2005 -06 to US $ 18 million in 2009- 2010. 

Shri Sharma also conveyed that there was potential to further increase the bilateral trade between both countries, especially the Ethiopian exports to India, in view of the Duty Free Tariff Preference (DFTP) Scheme announced by India. The Scheme provides for duty free market access on 85% of India's total tariff lines and Margins of Preference (MOP) on 9% tariff lines. "There is scope for increased trade and joint ventures in areas such as agriculture & agro-processing industries, floriculture, textile and garments, leather and leather products, IT sector, drugs and pharmaceuticals etc. 

Interacting with the visiting Minister, Shri Sharma said that India is the largest foreign investor in Ethiopia with approved investment of US $ 4.4 billion. Of this, approximately US $ 1 billion is already on ground or in the pipeline. About 40% of Indian investment is in the field of commercial agriculture. 

Major items of export to Ethiopia were machinery & instruments; electronic goods, transport equipments, manufacture of metals, paper wood products etc. while major item of imports from Ethiopia were pulses, oil seeds, leather, spices, non-ferrous metals, raw hides & skins etc.  Duty Free Tariff Preference expands market access, boosting potential for increased bilateral trade and investment ties. The release stresses that India-Ethiopia trade rose substantially with Indian exports predominating, and that the Duty Free Tariff Preference Scheme-providing duty free access on most tariff lines and Margins of Preference on others-creates market access to expand Ethiopian exports. It identifies priority sectors for trade and joint ventures (agriculture and agro processing, floriculture, textiles, leather, IT, pharmaceuticals) and notes significant Indian approved investment focused largely on commercial agriculture, positioning investment alongside tariff preferences as drivers of further bilateral economic engagement.