India and Tanzania have strengthened bilateral economic ties, with merchandise trade reaching USD 9.02 billion in 2025–26, up from USD 8.64 billion in the previous year. The progress was reviewed at the 5th India–Tanzania Joint Trade Committee (JTC) meeting held on April 29–30, 2026 in Dar es Salaam.
Trade grew consistently in the previous fiscal year, prompting discussions on local currency trade settlements and the facilitation of long-term business visas to sustain this momentum.
A core pillar of the discussions was Digital Public Infrastructure, with India offering expertise in India Stack components like real-time payments and DigiLocker to modernize Tanzanian digital services.
Furthermore, India’s developmental footprint in Tanzania was highlighted through Lines of Credit exceeding USD 1.1 billion for massive water infrastructure projects designed to serve 6 million people across 24 towns. Educational ties were also underscored by the growing role of IIT Madras Zanzibar as a regional center for technological excellence.
Key Statistical and Infrastructure Benchmarks
Bilateral Trade Value: Reached USD 9.02 billion in FY 2025–26.
Financial Cooperation: Over USD 1.1 billion in Lines of Credit for water networks across 24 towns.
Educational Hub: IIT Madras Zanzibar highlighted as a key driver for regional skill development.
Digital Integration: Technical review of MoUs on UPI-style real-time payments and digital public goods.
Sectoral Expansion: New focus areas include shipbuilding, oncology care, and gemstone value addition.
Agro-Trade: Emphasis on technology transfer and the stable trade of pulses like pigeon peas.
What is "India Stack"?
India Stack is a set of open APIs and digital public goods that allow governments, businesses, and startups to utilise a unique digital infrastructure to solve problems through presence-less, paperless, and cashless service delivery.
In the context of the India-Tanzania JTC, the two nations are exploring how this framework, including real-time payments (UPI) and Digilocker, can be implemented in Tanzania to enhance digital cooperation and public service efficiency. By sharing these technologies, India aims to help partner nations build resilient digital economies that foster innovation and inclusive growth.
The Policy Relevance Block
Secures Strategic Energy and Mineral Corridors: Collaboration in geological exploration and natural gas ensures India has a reliable partner for critical resources in East Africa.
Broadens the Reach of Indian Technology: By exporting India Stack and shipbuilding expertise, India transitions from a commodity trader to a high-value technology and infrastructure partner.
Mitigates Global Currency Risks: Transitioning to local currency settlements provides a hedge against US Dollar volatility for Indian MSMEs trading in African markets.
Strengthens Soft Power through Education: The success of IIT Madras Zanzibar creates a pipeline of Indian-trained African professionals, cementing long-term diplomatic and industrial ties.
Supports Global Health Security: Partnerships in oncology and telemedicine allow Indian healthcare providers to expand their service footprint while addressing Tanzania's urgent medical needs.
Relevant Question for Policy Stakeholders: With trade crossing USD 9 billion, how can India and Tanzania operationalise local currency settlement and digital systems to deepen long-term economic integration?
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