PM Modi's Ethiopia visit: A study in economic contrasts

India Dec 16, 2025

PM Modi recently arrived in Ethiopia on his latest international tour, aiming to spark new trade and investment deals between the two countries.
India's economy is massive—about $4.1 trillion and growing fast—while Ethiopia's is much smaller at around $109-127 billion, though it's one of Africa's fastest-growing.

Why does it matter?

The big gap in income levels and economic size could shape what both sides get out of this partnership.
India has a higher GDP per person and more public debt, while Ethiopia offers a young workforce and is attracting foreign investors thanks to recent reforms.
Despite their differences, both countries see real opportunities to team up for growth.