India And Eastern Africa Economic Relations With Special Reference To Kenya

Abstract

Economic relations between India and East Africa, particularly Kenya, have strengthened significantly in the last two decades. According to IMF data, India's exports to Kenya were US$ 420 million in 2005, which is projected to reach US$ 4,850 million in 2025. Imports have increased from US$ 90 million to US$ 900 million during the same period. The trade balance has consistently been in India's favour, rising from US$ 330 million in 2005 to US$ 3,950 million in 2025. The statistical analysis shows that India's average exports over the last 20 years have been US$ 2,574.29 million, with a minimum of US$ 420 and a maximum of US$ 4,850 million, with a compound annual growth rate (CAGR) of 13.01%. Imports averaged US$ 441.43 million, minimum 90 and maximum US$ 900 million and CAGR 12.20%. Trade balance averaged US$ 2,132.86 million, with a growth rate of 13.22%. It is evident from these figures that India-Kenya trade relations are steadily growing and diversifying. Despite challenges such as global slowdown, demonetisation, COVID-19 and post pandemic conditions, the trade trend has been positive. India's exports are concentrated in pharmaceuticals, machinery, auto components and petroleum products, while imports are mainly of tea, coffee and minerals. This partnership is geared towards long term cooperation through regional development, job creation and technology transfer.