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Uganda and India push for strategic partnership to reduce trade deficit 

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Uganda and India push for strategic partnership to reduce trade deficit 

by Ugnewsline Reporter
July 10, 2026
in News
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The Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna has held talks with the High Commissioner of India to Uganda, H.E. Upender Singh Rawat, with the discussions focused on how the two countries can leverage on the long-standing partnership to address the trade imbalance, enhance investment and support Uganda to achieve the Ten-Fold Growth Strategy. 

The meeting that took place at the offices of the Ministry of Trade aimed at strengthening Uganda–India trade and investment relations, expanding economic cooperation, and identifying new opportunities for collaboration especially in industrialisation, agriculture, digital transformation and skills development.

During the meeting, H.E. Rawat underscored India’s commitment to supporting Uganda’s economic transformation through increased private sector investment, innovation and technology transfer. He highlighted India’s strengths in manufacturing, irrigation, digital technologies and industrial development, expressing his country’s readiness to partner with Uganda in these priority sectors.

On trade, the High Commissioner observed that Uganda has significant potential to increase her exports to India especially under the Duty-Free Tariff Preference Scheme (DFTP) under which 94 percent of the products from Least Developed Countries are granted duty-free and preferential market access to the Indian market. He encouraged Ugandan producers and exporters to continue improving product quality and comply with international sanitary and phytosanitary standards to enhance competitiveness and expand market access especially for the agricultural exports.

Speaking during the meeting, Hon. Sanjay Tanna welcomed India’s continued commitment to Uganda’s socio-economic transformation and reaffirmed the Ministry’s dedication to fostering strategic partnerships that drive trade, investment and industrial development.

He however noted that although India has offered duty-free and preferential market access, some of the products where Uganda has a comparative advantage like milk and cocoa are still restricted. He said Uganda is working hard to increase production and value addition to the products like shea butter, honey, avocado among others which are included in the DFTP scheme.

Tanna urged H.E Singh Rawat to cooperate with his ministry to push for import substitution by encouraging Indian investors to start manufacturing establishments in Uganda. “We need you to help us to market Uganda to the Indian investors as an investment destination because the Ugandan government has invested a lot in the infrastructure especially the roads, power, water, the airline, and also defense making Uganda a much safer country to invest in”, said Tanna

Recognising the importance of human capital development, the meeting also focused on expanding cooperation in skills development through specialised training programmes and skilling hubs. The two sides acknowledged that equipping young people with industry-relevant skills is essential for boosting productivity, innovation and competitiveness.

The discussions also explored opportunities to strengthen cooperation in digital transformation. India expressed its willingness to share its experience in digital public infrastructure, digital payment systems and the digitalisation of public services to improve efficiency, promote financial inclusion and support Uganda’s digital economy.

Both sides further discussed collaboration in manufacturing and industrial development as Uganda works towards achieving its Vision 2040 aspirations. India reaffirmed its interest in supporting local manufacturing, value addition and industrial growth through investment, knowledge sharing and technology transfer

The High Commissioner also reaffirmed India’s continued support in the health sector, including facilitating medical travel for Ugandan patients seeking specialised treatment in India through more efficient visa processing and strengthened healthcare cooperation. The discussions further highlighted opportunities to expand Uganda’s exports of value-added agricultural products such as avocado oil and cocoa butter, while exploring new avenues for increasing bilateral trade and investment.

Hon. Tanna implored the Indian government to put in place a facility for the business community in Uganda to access affordable financing from the Indian Exim Bank.

H.E. Rawat used the meeting to extend an invitation to Uganda to the 18th BRICs Heads of State Summit that will be hosted by India in September 2026. He noted that the summit will serve as an important platform for strengthening commercial ties, promoting investment opportunities and expanding economic cooperation between the two countries.

India remains one of Uganda’s most significant trading and investment partners, resulting in a bilateral trade volume well in excess of $1.3 billion annually. The trade balance heavily favors India, with Uganda exporting primary commodities and importing higher-value manufactured goods, capital equipment, and pharmaceuticals.

Ugnewsline Reporter

Ugnewsline Reporter

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