India Djibouti Relations: Trade, Agreements, Recent Developments - UPSC Notes

The longstanding alliance between India and Djibouti is marked by mutual trust and collaborative goals. Serving as a regional power in the Africa / Horn of Africa, Djibouti has a considerable impact on global political and security issues. India established diplomatic ties with Djibouti in 1977, setting the stage for a lasting and multifaceted partnership. India and Djibouti share a Resident Embassy in Djibouti City, each having an embassy in the others capital, fostering strong bilateral ties. India and Djibouti have a Bab-el-Mandeb strait, anti-piracy, Indian Ocean security relationship, with defense ties, economic cooperation, cultural diplomacy, and joint security goals playing a central role. 

• India and Djibouti work together in Maritime security, capacity building, trade, infrastructure such as defense, nuclear energy, trade, space exploration, oil and gas, cybersecurity, culture, and education. 
• In order to deepen bilateral relations, India and Djibouti have committed to agreements in key areas such as Trade Agreement (2003), FOC MoU (2017). 
• With a trade volume of USD 8145 million (2022-23), India and Djibouti continue to strengthen their bilateral economic relations. 
• India’s export relationship with Djibouti is marked by the regular supply of Rice, sugar, pharmaceuticals, iron & steel across various industries. 
• India and Djibouti maintain strong trade ties, with Hides & skins, scrap metal (historically) being among the main imports. 

ITEC training, scholarships, e-VidyaBharati, e-AarogyaBharati cooperation between India and Djibouti includes joint research, digital initiatives, and university-level exchanges. For India Djibouti Relations, we have examined Tourism and Taxation Agreements, Education Cooperation, and Cultural Exchanges—critical aspects for UPSC Mains (GS Paper 2) and PSIR Optional. 

India Djibouti Relations Establishment of Diplomatic Ties

Historical connections such as Diplomatic relations post-independence, NAM context mark the beginning of India–Djibouti relations. The diplomatic history of India and Djibouti includes significant visits like President Ram Nath Kovind (2017), which fostered long-term cooperation. 

• The diplomatic journey between India and Djibouti comprises stages such as Early ties, recent focus on maritime and strategic engagement.

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Strategic & Political Cooperation of India Djibouti Relations

The Bab-el-Mandeb strait, anti-piracy, Indian Ocean security of India and Djibouti cooperation includes mutual defense interests, economic partnerships, cultural engagement, and joint actions on global security issues. 

• Through Naval visits, information sharing, capacity building, India aims to strengthen regional stability, promote peace, and enhance its defense capabilities. 
• India and Djibouti work together through Shared concerns, cooperation through multilateral forums, maintaining cooperation by sharing information and tracking terrorist threats. 
• India’s strategic IT capacity building through Indian programs partnership with Djibouti advances innovation, digital infrastructure, and security coordination. 
• UN, African Union, NAM, IORA (Djibouti is Dialogue Partner) facilitate engagement between India and Djibouti, strengthening regional and international collaboration. 
• The two nations are advancing their Potential for renewable energy projects by supporting joint projects in solar, wind, and energy storage sectors. 
• No DTAA in force between India and Djibouti play a crucial role in easing tax-related barriers for businesses and investors.

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Trade and Economic Overview of India Djibouti Relations

• Through key agreements in areas such as Trade Agreement (2003), FOC MoU (2017), India and Djibouti aim to boost their cooperative efforts. 
• India and Djibouti have reached a trade volume of USD 8145 million (2022-23), highlighting the deepening of their economic ties. 
• Investment flows highlight Limited, Indian interest in port, infrastructure and include important joint ventures promoting bilateral growth. 
• Formal sessions like Foreign Office Consultations, organized annually or biennially, aim to review and enhance the trade and investment cooperation. 
• As part of their strategic economic cooperation, India and Djibouti have extended several LOC for cement grinding plant (2017) to boost growth and financial synergy. 
• Exports from Djibouti to India stood at USD 118 million (2022-23). 
• Among India’s main exports to Djibouti are Rice, sugar, pharmaceuticals, iron & steel, reflecting strong and balanced trade between the two countries. 

The total value of goods imported by Djibouti from India stood at USD 8027 million (2022-23). Indian companies operating in Djibouti include Few, primarily in trading and services, contributing to economic collaboration.

Socio-Cultural & Diaspora Engagement

India and Djibouti gain from the impactful presence of their diaspora, which plays an essential part in enhancing Trade facilitation, small businesses. Activities like ICCR scholarships, occasional cultural events help people from both sides come together and appreciate each other’s heritage. ITEC slots, Pan-African e-Network Project participation is helping students and teachers from both India and the partner country learn from each other. 

• The Estimated around 600 individuals in Djibouti plays a pivotal role in enhancing the cultural and economic relationship between India and Djibouti. 
• By harnessing Naval port calls, development assistance, training, India and Djibouti seek to reinforce their strategic strength and broaden their global influence.
• The strong ties between India and Djibouti are underpinned by Data not readily available, which have a major impact on economic growth.

India Djibouti Relations Recent Developments

Strategic priorities and bilateral goals have been discussed extensively during MoS External Affairs V Muraleedharan (2023) between the two nations.  

• The two countries continue to work on Cement plant (LOC), IT capacity building, which reflect their evolving development priorities. 
• Ongoing discussions seek to mitigate Small market, infrastructure development needs, regional instability and build mutual trust. 
• India and Djibouti hold promising Enhanced maritime cooperation, port logistics, SME development in multiple areas of bilateral cooperation.

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UPSC Relevance of India Djibouti Relations

• Questions on India’s bilateral relations with Djibouti may feature in UPSC Prelims under International Relations or Current Affairs.
• A strong grasp of challenges and future prospects enhances answer quality in international relations essays.
• Diaspora support, humanitarian aid, and cultural diplomacy demonstrate ethical foreign engagement.
• International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.