Relations between India and Uganda have been problem-free, but episodic. The Indian community in Uganda played a prominent role prior to and in the early years of independence and this factor, as also the inspiration of Indian support to anti-colonialism resulted in cordial relations from 1962 till the Idi Amin's take-over in 1972. Relations suffered during the Amin era. With the establishment of the NRM Government in 1986, relations have steadily improved since and now are reasonably cordial.

The number of persons of Indian origin in Uganda is currently estimated between 12,000-15,000. Out of this, about 5000 hold Indian passports and the remaining hold British, Canadian, Ugandan and other passports. The profile of the Indian community is changing: apart from the return of the South Asian/Indian community which was ousted by Idi Amin in 1972, there is an inflow of fresh entrants mostly in the category of professional/skilled, semi-skilled workers including executives in banking and insurance sectors and IT professionals. The Indian community in Uganda is by and large well placed financially

Bilateral Trade

The volume of trade between India & Uganda has risen from US$ 5.6 million in 1984 to US$ 105.5 million in 2003. During the last four years, India’s exports to Uganda have significantly increased. India is now the second biggest exporter to Uganda (after Kenya). Our exports constitute around 8.5% of Uganda's total imports. Major exports items are: pharmaceuticals, bicycle & bicycle parts, automobile components, tyres, small industry & agro-processing machinery, 2-wheelers, textile fabrics, sports goods etc.

Pharmaceuticals account than 25%. Of the total pharmaceutical imports into Uganda, Indian products account for 30%. India is the largest exporter of pharmaceuticals/chemicals to Uganda.

Our performance in the field of tyres/tubes is satisfactory with a share of 25%. India is second biggest exporter of tyres and tubes, after Kenya. Indian tyres, notably MRF, are known for quality and cost effectiveness.

India's Exports to Uganda
 

Year	Exports (Million US $)	Annual Increase
2000	48.1	--
2001	56.8	18%
2002	71.3	26%
2003	105.5	48%

Some Country-wise Export Figures(2003)
 

Country	Exports (Million US $)	Place
KENYA	202	I
INDIA	105.5	II
SOUTH AFRICA	102.4	III
JAPAN	83.3	IV
UK	89	V
UAE	83.4	VI
USA	80.8	VII
CHINA	72.5	VIII

India's place as exporting country & percentage share of total imports into Uganda
 

Year	India's Place	% of Total imports into Uganda
2000	FIFTH	5.6
2001	FIFTH	6.51
2002	SIXTH	7.2
2003	SECOND	8.5

Imports from Uganda are negligible because manufacturing base of Uganda is very narrow. India-Uganda trade is tilted largely towards India. Mainly raw hides and skins, cobalt & allows, teak wood, scrap etc are imported in very small quantities.
 

Year	Imports (Million Us $)
2000	3.12
2001	0.34
2002	0.19
2003	1.2

Investments

According to Uganda Investment Authorty, India is potentially, the largest investor in Uganda. Tata Group of Companies, APTECH Uganda, Roadmaster Cycles, Mahindra Tractors have registered local companies for their operations in Uganda. Total amount of investments by ethnic Indians (PIOs and recent arrivals) at approx $ 34 m; investments planned is around $ 144m. Bank of Baroda has been successfully operating in Uganda for 49 years. Government of Uganda has disinvested its 51% shares in Bank of Baroda (Uganda). Bank of Baroda [Uganda], carried out IPO of 20% of its capital in Sep. 2002, and listed with Uganda Securities Exchange in Nov. 2002. Leading ethnic Indian Groups are Madhvanis, Mehtas, Mukwanos and Ruperelias.

Economic and technical co-operation between India and Uganda have steadily increased. Some current proposals under consideration are mentioned below:

(i) Gujrat Communications and Electronics limited had won US$ 3.5 million contract to set up a Digital Video/Audio Earth Station in Kampala, and to supply 10 FM Transmission Stations on turn key basis. However, they were unable to fulfil this contract because of the company's difficulties in India.

(ii) In January, 2000, Tungabhadra Steel Products Ltd., who are already present in Uganda since 1995 when they were awarded a World Bank-funded project to supply and install gate, hoists and cranes for Uganda Electricity Board, got yet another similar job worth US$ 1.5 million.

(iii) In April, 2000, HMT won an AfDB-funded order worth US$ 1,43,187 for supplying educational equipment to Government of Uganda’s educational institutions.

(iv) Uganda has expressed strong desire for a replica of EDII Ahmedabad - initial proposal sent to MEA.

(v) This Mission has also sent to MEA, a proposal to revive India's participation in SITI/SIPI mini hydel projects. NHPC have shown preliminary interest in the large Bujagali Hydropower Project.

(vi) APTECH has been successfully running an IT training institution in Kampala with degrees offered by Manipal University.

(vii) In December 2002, RITES successfully completed work on Kampala Urban Traffic Improvement Plan (KUTIP). The project was funded by World Bank/IDA and coordinated by Kampala City Council (KCC)

(viii) GOI has, in Dec 02, written off $ 5.234 m. of Govt. credit + interests as a part of the HIPC initiative. Still around $ 83.0 m. of commercial credit + interests are outstanding.

(ix) RITES Ltd., won the world Bank funded Construction Supervision of Kikorongo-Katunguru and Equator Road project in western Uganda. The job is due to start in February 2004. RITES have started the preliminary work, Road Admn. Formation Unit (RAFU) of Government of Uganda.

(x) Intercontinental Consultants & Technocrats (ICT) Pvt. Ltd . of India have been short-listed for providing Consultancy Services for the Feasibility Study and Detailed Engineering Design for the up-gradation of Kabale-Kisoro-Bunagana Road project in Uganda. ICT is one amongst seven companies short-listed. The Government of the Republic of Uganda received funds from African Development Bank for the services.

(xi) TVS Motor Company India Ltd. has appointed M/s Nirma International Ltd. of Uganda as their authorise dealer for sale of TVS (Victor, Max & Scooty) in Uganda. Motorcycles form one of the major hire transportation system in Uganda and adjoining countries. Presently, the market is dominated by second hand Yamaha motorcycles .

(b) Commercial

i) & ii) Total Exports to Uganda Rs 4.7 billion* (0.21% of total Indian Exports^)

Total Imports from Uganda Rs 54 million* (0.002%of Total Indian Imports^)

* Approximate figures based on Uganda Revenue Authority Statistics; ^ DGFT, India

3. Annual Growth of Exports over the years:

 

Year	Exports (Million US $)	Annual Increase
2000	48.1	--
2001	56.8	18%
2002	71.3	26%
2003	105.5	48%

Source: Indian High Commission, Uganda