This article covers the economic relationship between India and Botswana: the place of diamonds in Botswana's economy and in bilateral trade, the trade figures for recent years, the goods India exports, and Indian investment in banking, diamond processing, infrastructure and energy. It is based on the Ministry of External Affairs (MEA) bilateral brief of April 2026, and figures are reproduced as the brief gives them.

Diamonds and Botswana's economy

According to the MEA brief of April 2026, Botswana has transformed itself from one of the world's poorest nations to an upper middle-income economy, largely due to the discovery of diamonds in 1967. The brief states that Botswana is the world's leading producer of rough diamonds by value and the second-largest by volume.

The brief gives the following figures:

  • In 2023, Botswana's rough diamond production stood at 25 million carats, up from 24 million in 2022.
  • In value terms, diamond exports fell from USD 6.4 billion (2023) to USD 4.4 billion (2024).

India is among the principal destinations for Botswana's rough diamond exports.

What the two countries trade

The brief states that diamonds dominate bilateral trade. Botswana exports rough diamonds to India, while Indian exports to Botswana include pharmaceuticals, machinery, iron and steel, and electrical equipment.

In the brief's assessment, there is considerable scope for India to expand exports in healthcare, pharmaceuticals and medical devices, digital technologies, agriculture, textiles, mining (copper, nickel, uranium), renewable energy, tourism, insurance, automobiles, tyres, ICT solutions and entertainment industries.

Bilateral trade figures

The brief gives the following bilateral trade figures from the Department of Commerce, in USD million:

  • 2018-19: India's exports 178.31; India's imports 974.48; total trade 1152.79
  • 2019-20: India's exports 178.74; India's imports 744.00; total trade 922.74
  • 2020-21: India's exports 172.69; India's imports 461.72; total trade 634.41
  • 2021-22: India's exports 278.87; India's imports 527.96; total trade 806.83
  • 2022-23: India's exports 171.27; India's imports 459.97; total trade 631.24
  • 2023-24: India's exports 109.26; India's imports 326.75; total trade 436.01
  • 2024-25: India's exports 173.44; India's imports 332.90; total trade 506.34
  • 2025-26: India's exports 105.59; India's imports 309.98; total trade 415.57

All values are those given in the brief.

Indian investment

The brief describes Indian investment in Botswana in the following sectors.

Banking: Bank of Baroda has been operating in Botswana since 2001 with 4 branches. Its total volume of business in Botswana for the year 2025-26 is estimated at Rs. 4000 Crores.

Diamonds: About 30 Indian-owned cutting and polishing firms operate in Botswana, including M. Suresh, KGK, Aurostar, Arjav, Dia-Rough, Urostar and Karp Impex. The brief states that they provide employment and skills training.

Rail and infrastructure: RITES Ltd. has a presence in Gaborone. On 19 December 2025, it signed a Memorandum of Understanding with Botswana's Ministry of Transport and Infrastructure for the Development of Railways and Related Infrastructure and Information Technology Services. Mahindra operates through franchises.

Power: Jindal Steel & Power is implementing a 600 MW coal-fired power project, with 300 MW already under agreement with BPC. The groundbreaking took place in October 2023.

Renewable energy: A Memorandum of Understanding was signed on 17 December 2025 between KP Group and the Government of Botswana for large-scale renewable energy and power infrastructure development, with the company ready to invest up to Rs 36,000 crore. The MoU envisages upgrading power transmission and adding around 5 gigawatt of renewable energy capacity in Botswana, including high-voltage transmission lines and cross-border connectivity.