India Mozambique Free Trade Agreement

India and Mozambique recently signed a free trade agreement (FTA) on August 23, 2021, which aims to enhance the bilateral trade and economic relations between the two countries.

The FTA between India and Mozambique covers trade in goods, services, and investments. The agreement is expected to reduce or eliminate tariffs on a range of products, including pharmaceuticals, textiles, and agricultural goods. This will lead to an increase in trade flow between the two countries, which will ultimately result in increased economic growth for both nations.

With the signing of this FTA, India sees an opportunity to expand its footprint in the African market. Mozambique, on the other hand, is expected to benefit from India`s expertise in technology and other sectors.

India and Mozambique have had a longstanding relationship. Mozambique has been one of India`s most important partners in Africa and is a key destination for Indian investments. India accounts for about 15% of Mozambique`s imports and exports.

The signing of the FTA between India and Mozambique comes at a time when both countries are facing economic challenges due to the COVID-19 pandemic. The FTA is expected to help them overcome these challenges and boost their economic recovery.

In addition to the FTA, India and Mozambique have also signed several other agreements in the areas of health, culture, education, and defense. This highlights the growing importance of the relationship between the two countries.

The FTA between India and Mozambique has the potential to be a game-changer for the economies of both countries. The agreement will not only increase trade between the two nations but also enhance their overall economic cooperation. It is a positive step towards strengthening the relationship between India and Mozambique and will help them achieve their shared economic goals.