India-Tunisia relations

Category: International Relations

India-Tunisia relations

Diplomatic Relations

Diplomatic relations between India and Tunisia were officially established in 1958, laying the groundwork for a robust and evolving partnership. Historically, the leaders of Tunisia have spoken highly of India's democratic values and have expressed appreciation for India's role in supporting Tunisian independence from colonial powers. In a show of mutual respect, Tunisia also backed India's annexation of Goa in the early 1960s, highlighting the strong political rapport between the two nations. The Indian diplomatic presence in Tunisia began to take shape with the establishment of the first resident mission in Tunis at the level of Chargé d'affaires in 1963; this was later elevated to an Ambassador-level embassy in 1976. Tunisia reciprocated by establishing its embassy in New Delhi in 1981, cementing ties even further.

High-Level Visits

Over the years, several high-profile visits have reinforced the bond between India and Tunisia. Indian Prime Minister Indira Gandhi's visit in April 1984 was significant, as was Prime Minister Narasimha Rao’s visit in 1992. Former Prime Minister I.K. Gujral continued this tradition by visiting Tunisia in 1999, thereby strengthening diplomatic dialogues. On the Tunisian side, First Lady Wassila Bourguiba visited India in November 1982, which was followed by Prime Minister Mohamed Mzali's visit in 1983. These visits have facilitated not only bilateral discussions but also cultural exchanges that help to forge friendship between the peoples of both countries.

Recent Cooperation and Cultural Exchanges

More recently, in February 2016, Tunisia's Chief of Navy attended the International Fleet Review held in Visakhapatnam, showcasing military ties and cooperative defense initiatives. The state visit by Indian Vice-President Hamid Ansari to Tunisia in August 2016 marked another milestone, during which two Memoranda of Understanding (MoUs) were signed to promote growth in the domains of handicrafts, information technology, and the digital economy. The discussions also centered on enhancing collaboration in counter-terrorism efforts, with Prime Minister Habib Essid affirming the strength of the relations, stating, "Our relations are very strong, our views are similar." Notably, Tunisia expressed its support for India's bid for a permanent seat on a reformed United Nations Security Council, emphasizing diplomatic solidarity.

Cultural Symbolism

Cultural ties have also been reinforced through tangible symbols. On October 4, 2016, a statue of Mahatma Gandhi was unveiled at Manouba University by the Governor of Manouba Governorate, becoming the first statue of an Indian figure in Tunisia. This event highlights the respectful recognition of Indian culture and values within the Tunisian landscape, mirroring the historical and cultural linkages that continue to flourish between the two nations. Such gestures serve to deepen the mutual appreciation and understanding that both countries share, allowing for a friendly and supportive relationship as they navigate global challenges together.

Overview of Trade Relations

The trade relationship between India and Tunisia has seen significant fluctuations over the years, influenced by various socio-economic factors. In 2012, bilateral trade reached a notable figure of US$562.65 million. However, this figure experienced a decline in 2013, dropping to $398.88 million, primarily due to political instability in Tunisia and widespread strikes by mine workers. This period of unrest evidently impacted the export-import dynamics between the two countries. By 2015, trade levels further decreased to $340.25 million, underscoring the challenges faced in maintaining robust economic relations.

Key Exports and Imports

One of the cornerstones of India-Tunisia trade has been the export of phosphates. Tunisia has consistently been a reliable supplier of phosphate to India for several decades, beginning as early as the 1950s. Notably, India imports over 50% of Tunisia's total phosphoric acid exports, indicating a strong dependency on Tunisian resources for agricultural inputs. The trade in Di-Ammonium Phosphate (DAP) is significant, as it plays a critical role in India's agricultural sector, supporting the country’s food security efforts.

Conversely, India exports a diverse array of goods to Tunisia. Major exports include knocked-down kits used for manufacturing, a variety of automobiles, electrical equipment, cotton, mechanical engines, organic chemical products, rubber, and essential commodities such as rice, coffee, and an array of spices. This varied trade portfolio highlights India's capacity in both manufacturing and raw materials, catering to Tunisia's local market needs.

Future Potential

The potential for enhancing trade relations between India and Tunisia remains significant. As both nations navigate through their respective economic challenges, there exists an opportunity to strengthen bilateral trade ties. Tunisia's geographic positioning as a gateway to both Europe and Africa can be advantageous for India in accessing these markets. Moreover, both countries can explore collaboration in sectors such as information technology, pharmaceuticals, and renewable energy, thereby diversifying their economic ties and benefiting from mutual strengths.

By fostering dialogue and partnerships, India and Tunisia can look toward becoming stronger economic partners, facilitating growth and development that could pave the way for a prosperous future.

Investment Initiatives

The investment landscape between India and Tunisia has flourished since the establishment of Tunisia-India Fertilizer SA (TIFERT) in 2006, a notable joint venture that showcases collaborative efforts in the fertilizer sector. With a significant operational kick-off in May 2013, TIFERT has become a cornerstone of Indo-Tunisian economic cooperation. The company, primarily involved in the production of phosphoric acid, stands out with a valuation of $450 million as of 2016, demonstrating both the financial viability and the strategic importance of this venture. The joint ownership structure, with Indian stakeholders, including Coromandel Fertilizers Ltd and Gujarat State Fertilizers Ltd, holding a 30% stake alongside Tunisian governmental firms, highlights the mutual benefits this partnership is built upon. The company has extended its reach to export phosphoric acid to India beginning in July 2013, underscoring expanding trade links.

The Indian presence in Tunisia does not only rest with TIFERT. Indian firms such as Jyoti Structures and KEC International Ltd. have played a crucial role in enhancing the country's infrastructure, particularly in electric transmission line installation. Moreover, the automobile sector has seen significant Indian investments, with Mahindra establishing its first assembly plant in Africa in Sousse on 30 October 2013. Following this, TATA Motors initiated local production of pickup trucks in collaboration with Tunisian partners Le Moteur and Icar by June 2015, which marks a significant localization of automotive manufacturing. Additionally, Dabur's investment of $7 million in a toothpaste manufacturing facility further illustrates the diverse sectors in which Indian firms are engaging in Tunisia.

Bilateral Cooperation

The depth of Indo-Tunisian relations is further emphasized by a series of bilateral agreements that encompass a wide range of sectors, including trade, science and technology, counter-terrorism, organized crime, drug trafficking, nuclear energy, agriculture, cultural cooperation, and communication and information technology. These agreements not only aim to strengthen economic ties but also to foster a collaborative environment conducive to achieving mutual objectives within the global context.

Education and cultural exchange also play a vital role in this relationship. Tunisian citizens have the opportunity to benefit from scholarships under the Indian Technical and Economic Cooperation Programme and the Indian Council for Cultural Relations, which encourages professional development and cultural understanding between the nations. This investment in human capital forms the backbone of future collaborations and enhances people-to-people connectivity.

In a recent advancement, the India Tunisia Business Forum in February 2021 facilitated the signing of a Memorandum of Understanding between the Indian Economic Trade Organization (IETO) and the Tunisia Africa Business Council (TABC) to establish the India Tunisia Business Council (ITBC). This initiative aims to further promote trade and economic cooperation, and the presence of dignitaries such as the Indian Ambassador in Tunisia and the Tunisian MFA highlights the high-level support behind these efforts. Such initiatives signify a forward-thinking approach to enhancing bilateral trade relations while opening avenues for emerging sectors that could leverage mutual strengths.

Indians in Tunisia

As of December 2016, there were approximately 120 Indian citizens and individuals of Indian origin residing in Tunisia. This small but vibrant community includes a mix of new arrivals and families that have settled in the country for several generations. The majority of the Indian diaspora is engaged in employment with various Indian and international companies operating within Tunisia. Their presence contributes to the local economy while fostering cross-cultural exchanges between India and Tunisia.

In recent years, the Indian community in Tunisia has been affected by regional instability, particularly the Libyan Civil War. Many Indians fled to Tunisia to escape the escalating violence in Libya. In response to this crisis, the Indian government executed Operation Safe Homecoming, a significant evacuation mission aimed at bringing back nationals stranded in conflict zones. During this operation, and following persistent unrest in Libya in 2014, India utilized the Tunisian ports of Djerba and Tunis to facilitate the safe return of over 3,500 Indian citizens. This humanitarian effort not only showcased the Indian government's commitment to its citizens abroad but also highlighted Tunisia’s strategic importance as a transit point in times of crisis.

The relationship between India and Tunisia is multifaceted, encompassing not only the personal stories of individuals but also broader diplomatic and economic ties. Recently, there has been an increasing interest in enhancing bilateral trade, cultural exchanges, and cooperation in areas such as technology and education. As globalization continues to reshape the world, Indian expatriates in Tunisia play a pivotal role in reinforcing these connections, contributing their skills and knowledge while also embracing Tunisian culture.