If political relations between the two countries were always close, trade did not follow. According to the Indian Embassy in Algeria, trade between the two countries reached a peak of $2.9 billion in 2018, before falling to $1.5 billion in 2021.
The President of India, Mrs. Droupadi Murmu, will arrive today in Algiers, as part of a two-day state visit, at the invitation of the President of the Republic, Abdelmadjid Tebboune. This was announced by the Indian Ministry of Foreign Affairs in a press release, specifying that Ms. Droupadi Murmu has started a tour of Africa which will also take her to Mauritania and Malawi.
According to the same source, the Indian president will have to meet with the president, Abdelmadjid Tebboune, as well as the presidents of the two Houses of Parliament, Salah Goudjil and Brahim Boughali. She will also, add the press release, and deliver “a speech to the participants in the India-Algeria Economic Forum”, before going to the scientific and technological center of Sidi Abdellah and inaugurating the India Corner at the Hamma Garden of the Jardin d’Essay.
The first of its kind for a President of the Republic of India, this visit should be an opportunity for the two countries to remove all misunderstandings, which arose, in particular, following the rejection of Algeria’s application for membership in the club of BRICS. India would be one of the countries having vetoed the integration of Algeria into this economic entity, following lobbying from the United Arab Emirates. This matter will undoubtedly be addressed by the presidents of the two countries.
Furthermore, according to the Indian ministry’s press release, this visit “should make it possible to further strengthen bilateral ties between India and Algeria”, recalling that “the two countries already cooperate in several areas, particularly strategic ones such as oil and gas, defense and space cooperation.
Historical links
Except for the BRICS hiccup, political ties between Algeria and India have always been strong. Historical. Indeed, diplomatic relations between the two countries were established in July 1962, during the first year of Algeria’s independence. India is also among the countries that supported the Algerian liberation movement, with the opening of offices of the National Liberation Front (FLN) in this country in the late 1950s and early 1960s.
After independence, both countries were part of the Non-Aligned Movement (NAM) and both supported developing countries. Additionally, the two countries support each other on issues at the bilateral and multilateral levels. The leaders of the two countries also exchanged high-level visits. The first Algerian president to visit India was Chadli Bendjedid in 1982, 1983 and 1987.
For his part, President Abdelaziz Bouteflika was invited to the celebration of India’s Republic Day which took place from January 24 to 29, 2001. Several senior Indian officials also made visits to Algeria, including vice-president Zakir Hussain (1964), Mohammad Hidayatullah (1979), and Shri Hamid Ansari (2016). Indian Prime Minister Indira Gandhi also participated in the summit of the Non-Aligned Movement which took place in September 1973 in Algiers.
Accelerate trade
Although political relations between the two countries have always been close, trade has not followed suit. According to the Indian Embassy in Algeria, trade between the two countries reached a peak of $2.9 billion in 2018, before falling to $1.5 billion in 2021 “due to the impact of Covid-19 and the restriction strategies on imports adopted by Algeria. According to the same source, trade rebounded by 24% in 2022 to reach $2.1 billion. India exports to Algeria in 2023-2024 the equivalent of 848.16 million dollars.
These exports mainly consist of rice, pharmaceutical products, polyethylene terephthalate, granite, and meat. India imports from Algeria the equivalent of $885.54 million (2023-2024) in petroleum oils, LNG, natural calcium phosphates, and saturated methanol.
In terms of investment, several Indian companies are active in Algeria in the public and private sectors. They participate, in particular, in the realization of housing projects, the construction of hospitals, the railway, and digital services.
India’s GDP increased by 6.7% in the first quarter of fiscal year 2024-2025 (April-June) compared to the same period of the previous year. This rate – lower than various forecasts, the Indian Central Bank was counting on growth of 7.1% – is a sign of a slowdown in economic growth in India, according to Les Echos.
This is the lowest quarterly GDP growth rate in fifteen months. And in the previous quarter (January-March), growth reached 7.8%. The various experts interviewed on the economic situation had anticipated this slowdown, in particular because of the marathon elections of May-June which returned the Prime Minister, Narendra Modi, to power, but also because of the intense heat wave which overwhelmed the north of the country at the same period, notes the same source.
For the authorities in New Delhi, there is no reason to worry, note the periodical. “India was the most dynamic major economy during this quarter,” said V. Anantha Nageswaran. “Despite the slowdown, the data is positive, with a notable increase in private consumption and a slight increase in investments,” said Sujan Hajra, chief economist at broker Anand Rathi, quoted by Les Echos.
