Modi's Ethiopia Visit: Strategic Bet Amidst Civil Strife, $5 Billion Investment at Stake

• PM Modi's visit elevated India-Ethiopia ties to a strategic partnership, with India as a key Global South partner.
• India has accumulated $5 billion in direct investments in Ethiopia and is its second-largest trading partner, focusing on machinery, agriculture, and pharmaceuticals.
• Major Indian companies like Raymond, Cadila Pharma, and Kanoria Africa Textiles have significant industrial footprints in Ethiopia.
• India extended nearly $1 billion in soft lines of credit for infrastructure projects, acknowledging geopolitical costs.
• Despite India's support for Ethiopia's BRICS entry and economic reforms, the resurgence of civil war in the Amhara region poses a significant risk to India's investments and strategic goals.

Why It Matters: India's strategic partnership with Ethiopia is a high-stakes bet on its economic potential amidst civil unrest.