Foundation of India-Angola trade ties
Energy cooperation is the foundation of India-Angola trade ties, with Angola playing a vital role in India's energy security. India is one of Angola's top three trading partners and its second-largest oil importer, with the energy sector accounting for roughly 80-90% of the bilateral trade.
About Angola
Angola is a southern African country known for its rich natural resources, including oil and diamonds, and its history of Portuguese colonialism and civil war. The country gained independence in 1975, but a devastating civil war followed, lasting until 2002.
Geography
- Location: Angola lies on the western Atlantic Coast of Southern Africa, bordering Namibia, Zambia, and the Democratic Republic of the Congo. The exclave of Cabinda is separated from the rest of the country by the DRC.
- Topography: The country consists of a narrow coastal plain that rises abruptly to a vast interior plateau. Mount Moco is the highest point, at 8,596 feet.
- Climate: The climate varies, with a semi-arid region in the south and along the coast and a hot, rainy season (November to April) and cool, dry season (May to October) in the north.
Economy
- Natural resources: Angola's economy is heavily reliant on its vast natural resources, primarily crude petroleum and diamonds.
- Other industries: In addition to oil and gas, significant industries include diamond mining, agriculture, fishing, construction, and telecommunications.
- Post-civil war growth: Since the end of the civil war in 2002, Angola's economy was among the world's fastest-growing for a time, though growth is highly uneven and corruption is widespread.
Current Status and Key Highlights (as of November 2025)
Recent high-level engagements, including the historic state visit of Indian President Droupadi Murmu to Angola in November 2025, have reinforced and sought to expand this partnership.
- Trade Volume: Bilateral trade stood at approximately $4.192 billion in FY 2023-24.
- Primary Import/Export: India's main import from Angola is crude oil (mineral fuels and oil), while India primarily exports pharmaceuticals, rice, engineering goods, and machinery to Angola.
- Strategic Dialogue: During the recent visit, both nations agreed to further diversify trade and investment ties beyond hydrocarbons into new and emerging areas such as technology, agriculture, health, defence, critical minerals exploration (including diamonds), and infrastructure.
- Investment Opportunities: Indian oil and gas companies are actively seeking long-term purchase contracts and proposing investments in Angolan onshore/offshore upstream projects, refining, and fertilizer production.
- Global Initiatives: Angola has joined two major Indian-led global initiatives: the Global Biofuels Alliance (GBA) and the International Big Cat Alliance (IBCA), underscoring cooperation on environmental and biodiversity challenges.
- Defence Cooperation: Defence has emerged as a priority area, with discussions underway to finalize a $200 million Line of Credit (LoC) to support Angola's defence modernization and training systems.
In essence, the energy trade is the cornerstone of the relationship, which is now expanding into a broader strategic partnership encompassing economic diversification, defence collaboration, and shared global objectives.
Download Pdf
