By KT Reporter
Despite making up less than one per cent of Uganda’s population, the Indian Community, according to reports from the Ministry of Finance, Planning and Economic Development, contributes at least 65 per cent of the nation’s income tax revenue.
This contribution was the basis for President Yoweri Kaguta Museveni’s speech, in which he commended the Indian Community for shielding Uganda’s economy through investment in industry and services.
President Museveni made the remarks at State House, Entebbe during the Diwali, also known as the Festival of Lights, celebrations on Sunday, 26th October, 2025.
“The economy is growing on account of your entrepreneurial capacities. By investing in factories and services, you are helping us to create a middle and skilled working class and revenue base for the government from which we can get money to educate Ugandans so that through business and education, we can create a modern society. I therefore appreciate what you are doing,” President Museveni said.
He thanked the Indian Community for restoring their trust in Uganda despite initial setbacks climaxed by the 1972 economic war orchestrated by Idi Amin Dada that saw at least 80,000 Indians expelled from Uganda.
“I went to an Indian temple in London and found some Indians there who were lamenting about Amin’s actions. I told them that Amin did more damage to Africans than Indians; he damaged our economy and killed several people. I am therefore very glad that you came back when we called you, thank you for trusting Uganda again,” he added.
By 1972, Uganda had a population of 80,000 Indians with property totaling to 40,000. Today, the Indian Community is estimated to have about 40,000 members, many of whom are rooted in enterprises that support production, supply chains and employment across the country.
The Indian High Commissioner to Uganda, H.E Singh Rawat expressed gratitude to President Museveni for his public acknowledgement of the Indian community’s substantial contribution to Uganda’s socio-economic development.
“We welcome your continued encouragement for investment in value-addition and manufacturing. We also commend the steps taken under your administration to restore property rights and welcome back members of the diaspora who have revived economic activity,” H.E. Rawat noted.
The Minister for Presidency, Hon. Babirye Milly Babalanda, also commended the Indian community for “shielding our economy and President Museveni for enabling the environment.”
She called for more Indian investors in Uganda.
“We should use this year’s Diwali to attract other strategic friends to join you in investing in Uganda.”
Mr. Paresh Mehta, the chairman of the Indian Association of Uganda, concurred with President Museveni that the expulsion of Asians was more painful to Ugandans than it was for Asians themselves.
“Uganda lost a part of its productive and enterprising spirit, but it is the same land, the same people, only the vision has changed. But under your Excellency’s leadership, the vision has transformed Uganda into a country of opportunity and progress.”
An example of Indian families, Ruparelias, Madhvanis and Mehtas stand as pillars of Uganda’s industrial and social progress. Sudhir Ruparelia specifically arrived in Uganda with 25,000 USD (Shs86m) but through an opportunity under the NRM government, he has managed to build a business empire worth USD 1.6bn.
On an international level, Uganda and India share deep historical ties that have matured into broad engagement across trade, investment, development cooperation, technology transfer and defence cooperation. Accordingly, bilateral trade between the two countries has crossed the $1.2 billion USD mark.
From a humanitarian perspective, so far, the Indian community has sent 238 children to India for life-saving heart surgeries along with their caretakers, and another 100 children will be sent next year.
The community has also collectively donated 65,000 units of blood through their ongoing drives to celebrate Diwali, including the most recent at Singo Military Training School in Nakaseke and at the Sai Centre on Mawanda Road in Kampala.
This is the 8th Diwali Dinner being hosted by President Museveni since 2013.
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