High Commission of IndiaAccra, Ghana

Economic & Commercial Brief

India and Ghana share a multifaceted economic relationship driven by trade, investment, and development cooperation. The partnership continues to grow as both nations explore new opportunities and address challenges to enhance bilateral economic ties. India is among the top trading partners of Ghana and is among the largest destination for Ghanaian exports. Ghana has a positive trade balance with India, mainly due to large imports of gold by India which accounts for over 70% of total imports from Ghana. Ghana’s main exports to India are gold, cocoa, cashew nuts and timber products. India’s major exports to Ghana include pharmaceuticals, agricultural machinery, transport vehicles, electrical equipment, plastics, iron and steel, ethyl alcohol beverages and spirits, cereals, made-up textiles etc. 

Both countries discuss trade and economic relations under the structured framework of Joint Trade Commission (JTC). The 4th session of the India-Ghana Joint Trade Committee meeting was held in Accra on May 2-3, 2024. The discussions, aimed at strengthening bilateral trade and economic ties between the two countries, took place in a friendly and cordial atmosphere reflecting the traditional bonds between the two countries. 

Bilateral Trade

Bilateral trade between India and Ghana crossed the US$ 1 billion mark in 2011-12 and more than tripled in five years, recording US$ 3.6 billion in 2015-16. The following year, it dropped by a billion dollar to US$ 2.6 billion which increased to US$ 3.3 billion and peaked at US$ 4.4 billion in 2018-19, mainly due to jump in India’s import from Ghana (gold alone constituted over 80% of total imports). Bilateral trade then dropped 46.6% to US$ 2.39 billion in 2019-20 and further decreased to US$ 2.31 billion in 2020-21. As world economies emerged from the pandemic, bilateral trade also improved and recorded US$ 2.6 billion in 2021-22 and US$ 2.8 billion in 2022-23. The table below shows the bilateral trade since 2017.  

(In US$ million)

(Source: DoC, GoI) 

India’s export to Ghana has not seen much growth in since 2011-12 when it was US$ 800 million. Even after ten years, export value stood at US$ 862 million in 2020-21 which crossed one billion in 2021-22 but then decline below. On the other hand, India’s import (Ghana’s export to India) has increased significantly from US$ 341 million in 2011-12 to US$ 1.3 billion in 2020-21. Bilateral trade is in favour of Ghana. Major items of India’s export to Ghana are engineering goods, agricultural machinery, pharmaceuticals, chemicals, vehicles, electrical and electronic goods, plastics products, iron and steel and articles, beverages and spirits, cereals, and textiles. India’s major import items from Ghana are gold, cocoa, cashew nuts, wood products, timber.

Major Commodities of Export by India to Ghana

Major Commodities of Import by India from Ghana

India’s Investment in Ghana

India is among the top investors in Ghana. Indian investments spread across diverse sectors such as pharmaceuticals, construction, manufacturing, trading, agro-processing, etc. In 2021, India was the 2nd largest investors by number of projects with 25 projects [after China] and the 3rd by value of FDIs aggregating to US$ 98.84 million [after Singapore, Australia]. India’s FDIs constituted 7.61% of Ghana’s total FDIs of US$ 1,298.66 million in 271 projects in 2021. Historically between 1994 and 2021, Indian wholly-owned companies and JVs invested FDIs of US$ 2.2 billion in 870 projects as recorded by the GIPC (see table).

In 2022, India was the 2nd largest investor by number of projects with 21 projects and the 5th by value with FDI of US$ 66.34 million. This represents 4.17% of Ghana total FDIs of US$ 1,588.96 million in 211 projects. 

In 2023, India was the 3rd largest investor by number of projects with 13 projects (after China and USA) as well as 3rd  with regards to FDI of US$ 77.93 million (after China and Türkiye).

Business Exchanges

The trade chambers and associations in Ghana and India have maintained strong relations over the years, frequently organizing business delegations. India’s premier trade bodies, such as CII, FICCI, and PHDCCI, have signed MoUs for cooperation with the Association of Indian Industries (AGI) and the Ghana National Chamber of Commerce and Industry (GNCCI). Following the subsiding of the Covid-19 pandemic and the lifting of travel restrictions, several Indian business delegations have visited Ghana. The Mission has organized business events to facilitate interaction between Indian and Ghanaian businesses, collaborating with various export promotion councils of India to promote Indian exports to Ghana. Below are notable events and delegations:

1. CII-Exim Bank Conclave:

1. CII-EXIM Bank Conclave on India Africa Growth Partnership (18th Session: 14-16 June 2023; 17th Session: 19-20 July 2022)

2. Business Promotion Events:

1. India-Ghana Business Summit on Strengthening India-Ghana Business Relations Post-Covid (6 April 2022)

2. Business Meet on Exploring Opportunities in Pharmaceuticals & Healthcare in Ghana (26 April 2022)

3. Africa-India Partnership Day on Africa’s Transition through Solar: Sharing India’s Experience (26 May 2022)

4. India-Ghana Pharma Business Summit on Managing the Economic Challenges in Pharma Business in Ghana (13 December 2022)

5. Boardroom Interactive Discussion on ‘New Horizons For India-Ghana Trade, Economic and Investment Ties” (29 February 2024)

3. Indian Business Delegations to Ghana:

1. 48 Indian companies for Agritech West Africa 2022 (23-25 March 2022)

2. 50 Indian companies for West Africa Pharma & Healthcare Expo (27-29 April 2022)

3. 28 Indian companies for India-Africa ICT Expo (14-15 September 2022)

4. 36 Indian companies for Power & Energy Ghana Expo 2022 (14-16 Nov. 2022)

5. 43 Indian companies for India-Ghana Pharma Business Meet (27 February 2023)

6. 48 Indian companies for Agritech West Africa Expo 2023 (15-17 March 2023)

7. 8 Indian companies for India-Ghana Business Meet (4 April 2023)

8. 60 Indian companies for West Africa Pharma & Healthcare Expo (14-16 May 2023)

9. 22 Indian companies for Power & Energy Ghana Expo 2023 (11-13 October 2023)

10. 13 officials from Indian Economic Trade Organization (IETO) (18-24 February 2024)

11. 10 Indian companies from Job and Economic Transformation (JET) (26-29 February 2024)

12. 56 Indian companies for 3rd Agritech West Africa exhibition (19-21 March 2024)

13. 39 Indian companies for 3rd West Africa Pharma Healthcare Show, Ghana (8-10 May 2024)

4. Virtual Events:

1. Digital Session on Business Opportunities between India and Ghana (16 February 2022)

2. India-Ghana BSM with MPEDA (11 February 2022)

3. India-Ghana BSM with PEPC (23 February 2022)

4. India-Ghana BSM with TEPC (25 March 2022)

5. India-Ghana ICT Business Networking Meet with ESC (28 July 2022)

6. India-Ghana Business Meet/BSM with PEPC (2 August 2022)

7. India-Ghana Webinar-cum-B2B Session on Exploring Pharmaceutical Opportunities with Pharmexcil (23 November 2022)

Development Cooperation

Ghana was included as one of the nine West African countries under the Government of India (GoI)’s TEAM 9 Initiative launched in 2004. India has been supporting Ghana’s development by providing assistance for projects through concessional Lines of Credit (LoCs) and grants. Since 2003, GoI extended 10 LoCs, with aggregate value of US$ 390.27 million, to Government of Ghana. Most of the LoC-funded projects have been completed while some are yet to be executed or at various stages of implementation. The most outstanding projects are the Flagstaff House/Presidential Complex in the heart of Accra (under LoC), India-Ghana Kofi Annan Centre of Excellence for ICT (under Grant) and the Foreign Service Training Institute.  For project exports from India, especially in the infrastructure sector, Exim Bank of India extended three loans to the Government of Ghana, viz. US$ 447.17 million for Tema-Akosombo-Mkpakadan railway project, US$ 158.62 million for Tamale to Walewale road project phase-1, and US$ 24.98 million for the assembly plant for agricultural machinery.

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July 2024