By Business Insider Reporter

Trade between India and Tanzania has accelerated sharply over the past five years, reaching US$3.68 billion in 2023, according to the latest data from the Tanzania Revenue Authority (TRA).

The surge highlights growing economic ties, particularly in energy, pharmaceuticals, agriculture, and precious metals, as both nations deepen commercial cooperation.

According to Trading Economics, bilateral trade between India and Tanzania surged to a record US$ 6.71 billion in 2024, marking a significant increase from previous years.

India’s exports to Tanzania climbed to US$ 4.9 billion, driven by petroleum products, pharmaceuticals, and manufactured goods, while imports from Tanzania – including gold, cashew nuts, and other high-value commodities – reached US$ 1.81 billion, underscoring the growing commercial interdependence between the two economies.”

Exports and imports overview

India’s exports to Tanzania have steadily climbed, rising from US$1.13 billion in 2019 to US$1.67 billion in 2023. Key export sectors include petroleum products, medicaments, sugar, and vehicles, reflecting Tanzania’s expanding energy needs and growing industrial and consumer markets.

Notably, petroleum exports alone surged to S$662.7 million in 2023, underscoring India’s role as a reliable energy partner.

On the import side, India’s purchases from Tanzania rose sharply, driven by high-value commodities, especially gold. Total imports reached US$2.01 billion in 2023, up fromUS $867 million in 2019, with gold accounting for over US$922 million.

Other significant imports include dried legumes, cashew nuts, and, more recently, penicillin and scrap of precious metals, indicating diversification in trade flows.

India has generally maintained a favourable trade balance, although surges in Tanzanian exports have introduced some volatility.

The trade surplus peaked at US$779.8 million in 2022 but narrowed to US$344.3 million in 2023 as imports, especially gold, expanded.

More Info: Tanzania’s top trading partners

EXPORTS — TOP 5 DESTINATIONS (2023):

India — US$ 1,554 million ( 21.4 %)
South Africa — US$ 1,123 million (15.4 %)
United Arab Emirates (UAE) — US$ 686 million (9.4 %)
Switzerland — US$ 466–466 million ( 6.4 %)
China — US$ 428–428 million (≈5.9 %)

IMPORTS — TOP 5 SOURCES (2023):

China — US$ 4,159 million (27.5 % of total imports)
India — US$ 1,949 million (12.9 %)
United Arab Emirates (UAE) — US$ 1,418 million (9.4 %)
Saudi Arabia — US$ 919 million (6.1 %)
Japan — US$ 650 million (4.3 %)

Key insights and implications

Bilateral trade between India and Tanzania grew nearly 85 percent between 2019 and 2023, reflecting a steady increase in economic integration and closer commercial ties.

India’s exports to Tanzania have become increasingly diversified, catering to the country’s industrial, healthcare, and consumer needs, with key products ranging from vehicles to pharmaceuticals. On the import side, gold continues to dominate, highlighting Tanzania’s rich mineral resources and the significant role of precious metals in bilateral trade.

The overall rise in trade volumes and the diversification of traded goods indicate a robust and deepening economic relationship, which has the potential to expand further as Tanzania continues to develop its infrastructure, energy, and industrial sectors.

Analysts note that India – Tanzania trade is poised for continued growth. Tanzania’s infrastructure expansion, energy projects, and industrialization initiatives, combined with India’s focus on new markets for industrial and pharmaceutical products, suggest that the partnership could serve as a model for South-South trade relations in Africa.

Looking ahead

With both nations exploring investment, technology transfer, and industrial cooperation, the trade relationship is likely to extend beyond commodities into value-added manufacturing, renewable energy, and healthcare sectors. Business observers say this could solidify India’s role as a strategic partner in Tanzania’s economic transformation while providing Indian companies with lucrative growth opportunities.

India–Tanzania trade overview (2019–2023)

Year	India’s exports to Tanzania	India’s imports from Tanzania	Total trade volume	Trade balance (in favour of India)
2019	1,126.82	866.68	1,993.50	260.14
2020	1,087.09	525.95	1,613.04	561.14
2021	1,007.42	1,209.75	2,217.17	202.33
2022	1,181.41	1,961.19	3,142.60	779.78
2023	1,667.85	2,012.12	3,679.97	344.27