India-Angola Relations

The diplomatic relations between India and Angola were established in 1975 when Angola attained its independence. Angola was under Portuguese colonial rule. India continued its support to the MPLA – Popular Movement for the Liberation of Angola, that remained at the helm of affairs of the country since its Independence.

India exports 223 USD worth good to Angola annually (2015 – 16). It includes agricultural equipment, cosmetic products, rice, pharmaceuticals, spirits, beverages, food and meat products, leather, wood, paper products, etc. The State Bank of India has opened a branch in Luanda in 2005 to extend the commercial line of credit for the supply of tractors from India.

The imports of Angolan goods are of worth 2767 USD (2015 – 16). Angola is the second largest crude oil supplier in the sub – Saharan Desert after Nigeria. GAIL imports LNG from Angola. India suffers trade deficit with Angola. This is mainly because of the barriers of Indian investments in Angola. They are language barrier, business ethics, complicated procedure in business visas, issue of work permits. The major constraint is that the local authorities have imposed restrictions on repatriation of foreign currency as the foreign exchange reserves of Angola is declining.

Angola is not a member of IAFS – India Africa Forum Summit. It is held once in 3 years. In 2015, the then Union External Minister (state) V K Singh personally visited Angolan Vice President to provide the invite. But Angola failed to participate.

India extended a line of credit of 40 million USD for the RITES project – Railway India Technical and Economic Consultancy services. It is a railway rehabilitation project in Angola. The EXIM bank of provided 28 million USD for agricultural equipment purchases. India also provided 30 million USD to establish cotton spinning plants and 15 million USD for cotton grinning plants in 2010.

There are around 500 Indians in Angola. They are mainly business professionals working in offshore oil fields.