Addis Abeba — The most overused phrase in contemporary diplomacy may also be one of its most important: the Global South. It appears in declarations, summits and speeches with increasing regularity. But political vocabulary becomes meaningful only when it begins to alter economic reality. The question after the New Delhi BRICS Summit from 12-13 September, 2026, is therefore whether this growing political voice can produce institutions, investment, technology and opportunity. India and Ethiopia offer an interesting place to look for the answer.
Prime Minister Narendra Modi's meeting with Prime Minister Abiy Ahmed Ali on the sidelines of the 18th BRICS Summit came less than a year after Modi's visit to Addis Abeba in December 2025, when the relationship was elevated to a Strategic Partnership. In New Delhi, discussions ranged from defence and investment to healthcare, critical minerals, clean energy and capacity building.
The India-Ethiopia relationship poses a larger question after the New Delhi BRICS Summit: can the Global South move from demanding a greater voice in the world to building greater capacity within it?
From ancient commerce to modern capability
Follow us on WhatsApp | LinkedIn for the latest headlines
The contemporary agenda rests upon an unusually old relationship. Commercial connections between India and Ethiopia stretch back roughly two millennia, when the Aksumite world traded through the Red Sea port of Adulis with merchants from India. Indian teachers and merchants later became part of Ethiopia's economic and social landscape, and formal diplomatic relations were established in 1950, with Ethiopia becoming the first African country to open an embassy in New Delhi. History gives the relationship depth, but its relevance will ultimately depend on what the two countries construct from it today.
The core question remains: can the Global South move from demanding a greater voice in the world to building greater capacity within it?"Politics
Addis Abeba makes that contemporary relationship particularly significant. It is not merely Ethiopia's capital but, as the headquarters of the African Union, one of the principal meeting points of African diplomacy. Ethiopia therefore matters to India as a country situated at the intersection of African politics, the Horn of Africa and the wider Global South. India has consistently argued that Africa should not merely be discussed in institutions of global governance but should help shape them. That principle was visible when India championed permanent membership for the African Union during its G20 presidency. Ethiopia's presence as a full member of BRICS creates another avenue for African participation, while the New Delhi Declaration's support for Ethiopia's accession to the World Trade Organization adds an important institutional dimension. But representation acquires lasting value only when accompanied by economic capability.
The economic foundations already exist. Indian companies are among the top three foreign investors in Ethiopia, with more than 675 Indian companies registered with the Ethiopian Investment Commission and investments exceeding $6.5 billion. India is also Ethiopia's second-largest trading partner. Bilateral trade stood at $550.19 million in 2024/25, comprising $476.81 million in Indian exports and $73.38 million in imports. These figures reveal an interesting contrast. Investment has acquired considerable depth, yet trade remains modest relative to the size and potential of two countries whose combined population exceeds 1.5 billion. The next phase should therefore focus on widening the economic relationship rather than simply celebrating its existing scale.
That requires moving beyond the conventional structure of commerce between developing economies. Pharmaceuticals can become healthcare partnerships, agricultural trade can lead to food processing and farm technology collaboration, mineral cooperation can incorporate local value addition, and digital engagement can strengthen domestic capabilities rather than simply create another market for technology. India's relevance lies not in presenting a finished development model. Its own transformation remains a work in progress. Its experience is valuable because it has attempted to deliver digital infrastructure, affordable medicines, financial inclusion, skills and public services at an enormous scale under constraints familiar to many developing societies. Ethiopia, equally, should not be viewed simply as a destination for Indian capital. Its demographic scale, manufacturing ambitions, agricultural potential and diplomatic position make it a partner with capabilities and opportunities of its own.
This is where BRICS faces its real test. Expansion has made the grouping more representative, but numbers alone cannot make an institution consequential. Its credibility will depend on whether members can generate investment, financial mechanisms, technology partnerships and development opportunities among themselves. India and Ethiopia provide a useful test case because their relationship connects the Indian Ocean with the Horn of Africa, New Delhi with a centre of African diplomacy, and one of Asia's largest economies with one of Africa's most consequential states. The opportunity is not to construct another vocabulary of solidarity but to demonstrate what solidarity can deliver.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Two thousand years ago, merchants connected India and Ethiopia because opportunity made geography traversable. Today the instruments are capital, technology, skills and institutions. The Global South has spent decades seeking a greater place at the global table. The next stage is to demonstrate what it can contribute once it gets there. Influence does not come merely from acquiring more seats at the table. It comes from having more to place upon it. AS
Editor's Note: Malika Pandey is a public policy expert with years of experience working across key ministries of the Government of India. She can be reached at malikapandey98@gmail.com
