India looks to Morocco for Europe, but the kingdom exports only 2 % to its neighbors

India is rapidly expanding its positions in Morocco, Egypt, Algeria and Tunisia, but has not managed to link these operations into a genuine North African industrial chain. This is the finding reported on September 18 by EnterpriseAM.

In this strategy, Morocco stands out for its proximity to Europe, its trade agreements and its port infrastructure. It can serve as a production platform for Indian companies wishing to sell on the European and African markets.

Rabat and New Delhi also agreed in August to double their trade in five years. This had reached approximately 4 billion dollars in 2025. A working group is also to examine the possibility of concluding a preferential trade agreement.

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India’s presence in Morocco is already based on several industrial projects. The Tata group inaugurated its first defense plant abroad in Berrechid, where WhAP 8x8 armored vehicles are produced. The site has already delivered its first armored hulls manufactured in Morocco.

In the phosphates sector, the Indian group Chambal Fertilisers is partnered with OCP within IMACID, in Jorf Lasfar. This presence directly meets India’s needs, as the country has been seeking for several years to secure its supplies of Moroccan fertilizers.

Morocco ranks last in the region for trade with its neighbors

These investments do not yet form an industrial corridor linking the different countries of North Africa. Indian operations in Morocco, Egypt, Algeria and Tunisia function essentially as independent national projects.

The problem extends beyond Indian companies alone. In 2021, trade between North African countries accounted for only 4 % of the region’s total exports, compared with approximately 60 % within the European Union.

Morocco recorded the lowest rate among the four economies studied: 2 % of its exports were destined for other North African markets, compared with 4 % for Algeria, 5 % for Egypt and 7 % for Tunisia. These figures, cited by Malinne Blomberg, Deputy Director General of the African Development Bank for North Africa, concern 2021 and not 2026.

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Morocco, Algeria, Egypt and Tunisia’s membership in the African Continental Free Trade Area is not enough to solve the problem. Products simply shipped from India cannot automatically benefit from African tariff preferences: they must comply with rules of origin, which encourages Indian groups to produce locally.

To turn these scattered investments into a regional value chain, maritime links would also have to be improved, customs procedures harmonized and industrial standards brought closer together. Morocco therefore appears to be India’s main gateway to Europe, but its very limited trade with its neighbors still restricts its role as a platform for all of North Africa.