Free Access | 2024-04-12

UGANDA-INDIA BILATERAL RELATIONS: OPPORTUNITIES FOR TRADE, INVESTMENT AND COLLABORATION UNDER THE FOURTH NATIONAL DEVELOPMENT PLAN

Authors/Editors: Isaac M.B. Shinyekwa (PhD) ,  Aida Kibirige Nattabi ,  Philemon Okillong

Abstract:

This study assesses opportunities for deepening Uganda–India bilateral relations under the Fourth National Development Plan (NDP IV) agenda. Using both quantitative and qualitative approaches, the analysis covers trade flows, export potential and diversification, trade in services, foreign direct investment, business challenges and opportunities and, lessons from India’s experiences in Business Process Outsourcing (BPO) and health service exports. The findings show that while India is a key trading partner for Uganda, the relationship remains imbalanced, with Uganda largely exporting primary commodities such as gold and coffee while importing manufactured goods including pharmaceuticals, vehicles, and machinery. Uganda has untapped export potential to India mainly in gold, agricultural products, and emerging crops such as cashew. India’s export potential to Uganda is also substantial, particularly in pharmaceuticals, motorcycles, and agro-industrial inputs. In services, Uganda’s exports remain modest and concentrated in travel and consultancy, while India supplies high-value business and ICT services. Case studies of India’s BPO and medical tourism sectors provide useful lessons for Uganda’s diversification and service export strategies. Overall, aligning India’s investments with Uganda’s development priorities presents opportunities for mutual benefit and inclusive growth.