General : India-Tanzania relations have traditionally been close and friendly characterised by active bilateral cooperation and mutual understanding. Founding President Julius Nyerere was held in high esteem in India; Till mid-1980s the political relationship was driven largely by shared ideological commitments to anti-colonialism, anti-racism, socialism and NAM. In the general post-Cold War readjustment of policies steps are being taken by both countries to strengthen existing friendship by creating avenues for mutually beneficial business and economic co-operation and partnership.
High level visits: Regular political-level exchanges, particularly frequent in the Nyerere period (1961-85). Major recent visits: President Kalam (September 2004); President Mkapa (December 2002); Foreign minister Dr Asha- Rose Migiro ( working visit in November 2006); Minister of Information & Culture Muhammed Seif Khatib, (January 2007 for Satyagraha conference); ministerial-level EAC delegation (February 2007); Industry Minister Basil Mramba ( May 2007 for Joint Trade Committee meeting).
Bilateral institutional framework: Joint Commission (last session in April 2003 in Dar es Salaam); Joint Trade Committee ( last meeting in May 2007 in New Delhi); BIPPA (Proposed in 2002; drafts exchanged; Comments awaited by both sides); Avoidance of Double Taxation Agreement (The 2nd round of talks for updating the agreement held in August 2007 in Dar es Salaam).
Defence cooperation : A defence cooperation MOU signed in October 2003. Indian naval ships pay goodwill visits occasionally, last in August 2002. Six to eight courses in India under ITEC. The curriculum in the prestigious national Command and Staff College at Monduli. Was set up by India in the 1980s.
Grants/Credits: Inter-governmental credits extended in the 1970s and 1980s were waived during the visit of the President to Tanzania in 2004; some commercial credits are still outstanding, rendering direct credit availability difficult.
Technical cooperation: Tanzania is one of the largest beneficiaries under ITEC with 100 places in 2007-08. Currently three Indian funded projects are under implementation: a small industry information centre (by NSIC); a Centre of Excellence in ICT ( by C-DAC ); and the pan-African e-network project (to be implemented by TCIL). At the JTC meeting in May 2007 India agreed to provide technical support for preparation of a feasibility report of a cyber city project in Arusha region.
Bilateral Trade: India’s exports US$ 237.02million, imports US$56.56 million (2006 estimate). Principal commodities: Exports – Mineral fuels, pharmaceuticals, cotton textiles, engineering goods, iron & steel, motor vehicles, consumer goods, garments; Imports – raw cashew nuts, gemstones, raw cotton, pulses, timber.
Investment from India: According to Tanzanian government statistics, during 1990-2006, 118 companies with “Indian interest” have invested a total of $825 million. Recently, Reliance Industries Ltd acquired a majority stake and management control of major oil company Gulf Africa Petroleum Corporation. In September 2007, the Tanzania Railways Limited (TRL), in which RITES holds 51% shares, was given the concession to run Tanzania railways for 25 years. Other major Indian companies are : Bank of Baroda (branches in Dar es Salaam and Arusha); Bank of India ( in the process of opening a branch in Dar es Salaam); Air India; Tata International (has a MOU with the National Development Corporation of Tanzania for setting up a soda ash factory at Lake Natron); National Mineral Development Corporation; Tanzindia Assurance Company Ltd, promoted by a consortium of Indian insurance companies.
Indian Community : About 40,000 people of Indian origin (referred to as Asians) mainly from Gujarat (Kutch and Kathiawad) mostly engaged in business; and about 5,000 Indian nationals (referred to as expatriates) employed mainly in industry and services.
11 December 2007
Last update: 11 December 2007 |
