india and africa relations
TRANSCRIPT
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INDIA AND AFRICA ECONOMIC RELATIONS SINCE 1991
INTRODUCTION
Peoples of Africa and India represent a third of humankind. They have known each other since
ages. As victims of exploitation and injustice in the colonial era, they were linked through mutual
empathy and a common goal, namely freedom from domination and discrimination
(http!!www.mea.gov.in". The India#Africa relationship is distinctive and owes its origins to a
common past that they share $ a past that witnessed a struggle against colonialism, poverty and
illiteracy. India and the African nations have %een %uilding strong and mutually %eneficial
associations since long. India esta%lished its trade relations with the African countries as long %ack
as in the &'th century. As emerging economies, India and Africa have a lot in common# rich natural
resources, similar demography and large domestic markets. This provides a natural synergy for
%uilding partnerships. The first large#scale Afro#Asian conference took place during April, &)) in
*andung, Indonesia. The twenty nine countries, which participated at the *andung +onference,
represented nearly one fourth of the arth-s land surface and a total population of &.) %illion
people. The conference was organied %y Indonesia, *urma, Pakistan, /ri 0anka and India. In
&'1, a %ilateral programme of financial assistance and mutual cooperation developed, to %enefit
%oth India and Africa, was taken care of through the Indian Technical and conomic +ooperation
(IT+" programme. This programme was a visi%le sym%ol of India-s role and contri%ution to
/outh#/outh +ooperation. 2uring the &3s increased focus was laid on Indo# African economic,
education and technical cooperation. In recent times, they have struggled together for attaining
socio#economic development and a just glo%al order. 4owever, their relationship is marked %y
awareness deficit and gaps that need to %e addressed. 5f the three pillars of Africa#India
engagement, namely 6overnment#to#6overnment (6#to#6", *usiness#to#*usiness (*#to#*" and
People#to#People (P#to#P" ties, the third pillar is uni7ue in many ways. It dates %ack to prehistoric
times8 and it has immense potential for expansion in the future. (http!!www.mea.gov.in".
In recent years, India-s economic partnership with the African countries has %een lively, extending
%eyond trade and investment to technology transfers, knowledge sharing, and skills development.
Persistent efforts are %eing put in at the government level as well as the private sector level, for a
comprehensive engagement, to march together as partners in progress. (African desk,pp#" The
:irst India#Africa :orum /ummit in 933; at
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further set at the 9nd India# Africa :orum /ummit held in Addis A%a%a, thiopia in =ay 93&&. The
India# Africa *usiness Partnership /ummit II, organised %y :I++I, during 5cto%er 93&&, also
played a catalytic role in the vi%rant relationship %etween India and Africa. (African desk ,pp#"
The India#Africa economic and trade relations have witnessed a surge, from a modest level of >/?
91.; %illion in 933'#3@ to >/? ). %illion in 93&3#&&. The total trade %etween the two grew at a
compounded annual growth rate (+A6B" of 93.;@C during the same period. :urthermore, %ilateral
trade %etween India and Africa is expected to reach >/? @3 %illion %y 93&). 5n the other hand,
over the past two decades, foreign direct investment (:2I" has %ecome a vital source of economic
development for Africa. India has %een present in Africa for decades with its :2I, mostly in the
services and manufacturing sectors. India, now the world-s 9&st largest outward investor, is the th
largest source of :2I into Africa. Indian multinational enterprises (=
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2iaspora in Africa could %e seen to have commenced from /outhern and astern Africa over 9)3
years ago with a larger num%er of its people moving towards that continent around 933 years ago.
5ur identification with issues affecting Africa was evident when India even %efore it %ecame
independent imposed sanctions against the apartheid regime in /outh Africa. The A:BI+A :und
further closely identified India with Africa-s struggle against colonialism and apartheid as the
acronym A:BI+A stood for Action for Besisting Imperialism, +olonialism and Apartheid. This
:und, in fact, was crystallised in
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India for the 0east 2eveloped +ountries has %egun to %ear fruit. The development of infrastructure
is a priority for Africa. (=.6anapati, PP."
In this context, India is contri%uting towards esta%lishing a new thiopia#2ji%outi rail network
through a line of credit worth >/? 33 million. The role of the private sector in the
operationalisation of some of the letters of credit needs no emphasis. Ehile there have %een
political engagements with Africa over the years, the emphasis, however, has moved towards
economic interaction. There is a felt need for greater engagement %etween India and Africa on
issues of a geo#strategic nature. India has always %een keen to cooperate with Africa on issues of
glo%al security. An important example in this regard relates to India %eing at the forefront of the
glo%al efforts against piracy off the coast of /omalia.The Indian
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Trade with Africa
In recent times interaction in economic cooperation has emerged a significant channel of
+olla%oration and a major factor for enhancing cooperation %etween Africa and India. The major
factor for rise of glo%al market in Africa and India-s %ooming products have led the leaders and
diplomats to scrutinie the economic relation %etween these two countries. To reiterate, trade ties
%etween India and Africa chart a long and distinguished history. These go %ack thousands of years
to the days when Indian traders, using the seasonal monsoon winds, sailed to the ast African
+oast in search of mangrove poles, elephant tusks, and gold and gemstones that made their way up
from what is now Gim%a%we. This intensified with the esta%lishment of 5mani suerainty in the
&@th century over Gani%ar and its hinterland. There was also the large immigration of Indian
la%our during the colonial period, %rought over to work on the railways in ast Africa, and on
sugar and other plantations in =auritius, =adagascar and /outhern Africa. =any descendants form
the %ulk of the Indian diaspora in Africa today. As the population of the diaspora grew, so did trade
%etween their original homeland and their new#found ha%itat. Indians %ecame critical links in the
export of African commodities such as tea, coffee and cotton and the import of manufactured
goods and grains such as rice, pulses and textile. /ince independence, India has had cordial and
friendly trade relations with Africa in general. Trade relations have expanded considera%ly since
&1@, particularly after the transition into the 9nd millennium. =oreover, the %ilateral trade
touched yet another milestone at the onset of glo%aliation (www.ijsrp.org". Additionally,
economic relations %etween the two countries have grown many#fold as a conse7uence of
formalisation of diplomatic relations %etween the two, in &.
India-s trade relation with Africa took a new direction when Indian :oreign Trade Policy (I:TP"
9339#3@ came along with a programme of H:ocus Africa, under the JI= Policy 9339#3@.
6overnment of India launched this Programme in 9339#3 to increase the inter#state interaction,
specifically, with the /u%#/aharan Africa region", %y identifying potential areas of %ilateral trade
and investment. Target countries identified during the first phase of the programme included
=auritius, Denya and thiopia (file!!!+!>sers!200!2esktop!dissertation!India#Africa
C93TradeKC936ainingC93=omentum.html--". The H:ocus Africa programmeLs commercial
focus is expansive and %eyond regular fiscal incentives, where%y export promotion activities are
conducted %y various export promotion councils and %usiness associations with grant under
=arket 2evelopment Assistance (=2A" and =arket Access Initiative (=AI" /chemes. It was a
part of a larger Indian strategy to diversify trade relationships %eyond traditional markets.
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(International Mournal of /cientific and Besearch Pu%lications, Nolume 1, Issue , =arch 93&1
I//< 99)3#&), PP#@, www.ijsrp.org".
=ore recently, India # Africa trade has grown significantly in the last decade (:I++I Africa
2esk ,PP##)". This upward trend in %ilateral trade is partly the conse7uence of India-s duty#free
tariff preferential scheme for 1 least developed countries (02+s", which was announced in April
933;, and which has %enefited African countries (International Mournal of /cientific and
Besearch Pu%lications, Nolume 1, Issue , =arch 93&1 I//< 99)3#&), PP#@, www.ijsrp.org".
/ince &3-s trade %etween india Africa increased. =ajor exports from india was engineering
goods, textiles, vehicle, oil etc. .apart from these indian companies like Arvind
pharma,+ipla,ncure and Ban%axy have esta%lished themselves in most of african markets .India
exports from Africa cashew nuts, high 7uality crude oil, petroleum products, precious metals etc
.In the last decade india has launched a no of initiatives to promote trade with Africa not only
pu%lic sector %ut private sector olso has pitched into African markets %oth sectors have adopted
wide range like The association cham%ers of commerce and industry ,the confederation of Indian
Industry, the federation of Indian cham%ers of commerce and industry. India has made extensive
investments in Africa and its expanding %eyond its traditional commonwealth partners.in 9339
Indian enterprises had a total of o million invested in 1 projects. Indian companies are also
active in chemical ventures =orocco F Tanjania, coopermines in Mam%ia , oil in =auritius,
telecommunication in =alawi. In >ganda India is now rd largest source of :2I..these lead to
stronger relations %etween India and Africa..
Idia!Africa Trade
The %ilateral trade has witnessed a massive growth from a mere >/?& %illion in &3 and &)
(file!!!+!>sers!200!2esktop!dissertation!India#AfricaC93tradeKC93aC93uni7ue
C93relationship.html" to >/? %illion in 9333, reaching up to the level of >/? '%illion in 933@#
3; and clim%ing up high to the level of >/? @3 %illion in 93&9#& (International Mournal of
/cientific and Besearch Pu%lications, Nolume 1, Issue , =arch 93&1 I//< 99)3#&), PP#@,
www.ijsrp.org". *ilateral trade %etween 933#31 and 933;#3 alone increased threefold, from ?9.)
%illion to ?@.) %illion. In Manuary 93&&, following a visit %y India-s commerce and industry
minister, Anand /harma, to /outh Africa, an unprecedented new %ilateral trade target of ?&) %illion
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%y 93&1 was agreed upon (file!!!+!>sers!200!2esktop!dissertation!India#AfricaC93tradeK
C93aC93uni7ueC93relationship.html ".
Ta"#e $%1$
Idia & Africa Trade
(Nalue in >/ ? million"
Oear xports Imports Total Trade
933)#3' )11&.@3 131&.; 1;.3;
933'#3@ ;13@.) &&'9.@' &@@3.9
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Provisional
Including Petroleum Product xports from India
/ource 26+IF/
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Idia e'()rt* t) Africa
Africa imports products that support the fundamental economic activities of the African countries,
such as transportation and communication e7uipment. :ood products, :=+6, telecommunication
and pharmaceutical products are among the other significant imports. *esides these, the African
countries with their %udding manufacturing sectors, increasingly import diverse component
products (:I++I Africa 2esk, PP##)".
Ta%le&
INDIA+S E,PORT TO AFRICA -US . MILLION/
RE0IO
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S)2ther
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(source http!!commerce.nic.in!eid%!ergn.asp"
As can %e seen from the data, Indian exports to Africa have %een showing an upward trend since
the inception of H:ocus Africa programme. Eith around 3C share of total exports to Africa, ast
Africa has %een a major importer followed %y /outhern Africa (91.' percent" and
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with large tracts unexplored still. Eith increasing glo%al demand for energy, Africa will remain
critical to the world economy.
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have seen an upward trend. India is a major importer of crude oil from this region. *esides oil,
edi%le fruits and nuts, especially shelled cashews are significant import item. :ollowing up the
footsteps of /outhern and Eestern Africa, sers!200!2esktop!dissertation!India#AfricaC93tradeKC93aC93uni7ue
C93relationship.html".
/ince 933@, India has %een having a trade deficit that is primarily due to the import of mineral
fuels. In general, India has %een exporting to Africa products such as, 4igh /peed 2iesel (4/2",
Aviation Tur%ine :uel (AT:", medicines and pharmaceutical products, vehicles including motor
cars and motor cycles, electrical machinery F e7uipment, mineral! chemical fertiliers, other
motor spirits, tyres used on %uses! lorries, printed %ooks, polypropylene (a polymer used in a wide
variety of applications including packaging, textiles etc.", garments, fa%rics, household articles of
stainless steel and so on. 5n the other hand, India generally has %een importing petroleum oils F
oils o%tained from %ituminous minerals, crude and other non#monetary unwrought forms of gold,
coal, copper ores F concentrates, manganese ore, co%alt ores F concentrates, natural calcium
phosphates, ground and other different ores, slag and ash, nuts # fresh!dried#in a shell, phosphoric
acid, diamonds, unwrought silver, woods and articles thereof, coffee, tea, mate, spices and so on
( :I++I Africa 2esk ,PP##) ".
5il %eing a central commodity shaping the economic relationship %etween Africa and India, merits
special attention. =ining and hydrocar%ons are key drivers of Indian engagement in Africa.
According to /outh Africa#%ased +onfederation of Indian Industry (+II", India is the world-s fifth
largest consumer of oil and will %e in third place %y 933. Eith the projected rise in India-s
population and wealth, energy consumption levels are also predicted to dou%le over the next two
decades. In addition, %ecause of the lack of oil reserves, India is highly dependent on foreign
http://www.ijsrp.org/http://var/www/apps/conversion/tmp/scratch_4/file:%2F%2FC:%5CUsers%5CDELL%5CDesktop%5Cdissertation%5CIndia-Africa%25252525252520trade_%25252525252520a%25252525252520unique%25252525252520relationship.htmlhttp://var/www/apps/conversion/tmp/scratch_4/file:%2F%2FC:%5CUsers%5CDELL%5CDesktop%5Cdissertation%5CIndia-Africa%25252525252520trade_%25252525252520a%25252525252520unique%25252525252520relationship.htmlhttp://www.ijsrp.org/http://var/www/apps/conversion/tmp/scratch_4/file:%2F%2FC:%5CUsers%5CDELL%5CDesktop%5Cdissertation%5CIndia-Africa%25252525252520trade_%25252525252520a%25252525252520unique%25252525252520relationship.htmlhttp://var/www/apps/conversion/tmp/scratch_4/file:%2F%2FC:%5CUsers%5CDELL%5CDesktop%5Cdissertation%5CIndia-Africa%25252525252520trade_%25252525252520a%25252525252520unique%25252525252520relationship.html
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producers. ven within the crude energy suppliers,
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=orocco as the top reformer glo%ally during the survey period, with /ao Tome and Principe, +ape
Nerde, /ierra 0eone and *urundi also among the top &3 reformers. +hanges in domestic policy in
these countries improved the process of dealing with construction permits, protecting investors and
paying taxes, among other areas. Improved %usiness climate, prudent macroeconomic and fiscal
policies, rising 62P and 62P per capita, increasing ur%aniation, improved infrastructure,
growing middle class and most importantly a%undance of natural resources has made Africa an
attractive investment destination. The average annual :2I inflows in Africa increased from >/ ?@
%illion during &3s to >/ ? ) %illion during 9333#93&9. :2I inflows reached its peak during
933;, recorded at >/?) %illion %ut su%se7uently declined for three years due to glo%al financial
crisis (>
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The trend of Indian investment in Africa is also positive. In /outh Africa, for example, cumulative
investment %etween Manuary &1 and Manuary 93&& was around ?9&9 million, and &39 Indian
firms are now in operation in the country. 5verall, Indian investment in Africa is %elieved to %e
around ? %illion. 2r Alex Nines, who heads the Africa Programme at +hatham 4ouse, %elieves
that Hwe are seeing the %eginning of an Indian re#engagement with Africa, which is private#sector
driven. Indian %usinesses have %een telling India-s foreign ministry it needs to step up its presence
on the continent. The state appears to %e responding. In the wake of a high#level visit led %y
Indian Prime =inister 2r =anmohan /ingh, a num%er of important development, investment and
trade deals have %een signed.
(file!!!+!>sers!200!2esktop!dissertation!India#AfricaC93tradeKC93aC93uni7ue
C93relationship.html".
THE FICCI CONNECTION
:I++I works closely with African missions in India, Indian mission in Africa, counterpart cham%er
of commerce in Africa, industry associations and private players in India and Africa, to develop
synergies for mutual development. :I++I has hosted several %usiness and official delegations from
and to countries across the African continent. :ocused interactions have %een organised for %etter
mutual understanding of policy and market conditions in India and Africa at various levels.
:I++I-s initiatives in Africa can %e %roadly classified as *ilateral, /ectoral, Begional, Pan African
*ilateral :I++I has set up %ilateral institutional mechanisms called Moint *usiness +ouncils
(M*+s" with counterpart apex +ham%ers in all major African countries to facilitate %usiness to
%usiness interaction on a regular %asis. Alongside the M*+s, :I++I signed =o>s with leading
cham%ers in Africa to promote Indo#Africa %usiness interactions regularly. M*+s provide a variety
of %usiness facilitation services %y closely working with 6overnment and %usiness promotion
organiations in India and the respective partner countries. Moint *usiness +ouncil Agreements
with African countries acted as a stepping stone to expand :I++I-s activities from %ilateral
dialogues to regional, sectorial and Pan#African %usiness forums.
/ectoral :I++I takes up sectorial initiatives in regular intervals. :I++I organises India#Africa
4ydrocar%ons +onference %iennially since 933@, in colla%oration with =inistry of Petroleum and
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India and The Eorld *ank. =any other sectoral initiatives like ducation :airs, Eater /ummits,
4ealth /ummits, etc. had %een organied from time to time.
Begional :I++I-s regional initiatives include distinguished %usiness events like R/ +olla%oration in Africa and *BI+/ (:I++I Africa 2esk, PP##) ".
INDIA AND AFRICA COOPERATION ON ENER06
Eer78 a* a i4()rtat c)4()et )f trade
nergy co#operation is one of the important areas of economic partnership %etween India and
Africa. India-s economy is projected to grow at a rate of somewhere %etween ;C and &3C
annually over the next two decades and currently it is the fifth largest consumer of energy in the
world, accounting for some .@C of total glo%al consumption. 5ne#third of it comes from
traditional sources of fuel, including wood, dung, crop residue, %iogas and waste.
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(http!!www.erewise.com!current#affairs!india#africa#
relationKart)9;f%%c)').htmlS.Np"
5il is a central commodity shaping the economic relationship %etween Africa and India =ining
and hydrocar%ons are key drivers of Indian engagement in Africa. According to the +onfederation
of Indian Industry (+II", %ased in /outh Africa, India is the world-s fifth largest consumer of oil
and will %e in third place %y 933. As India-s population continues to rise and %ecome wealthier,
energy consumption levels are predicted to dou%le over the next two decades. (http!!www.glo%al#
%riefing.org!93&9!&3!india#africa#trade#a#uni7ue#relationship!
In order to diversify its energy sources, India is investing in energy assets overseas. Africa-s energy
resources are very significant for India. +urrently, India gets over @3 percent of its oil from the
=iddle ast, with /audi Ara%ia followed %y Iran %eing their most important suppliers. 4owever,
2elhi is now eager to diversify its portfolio of crude energy suppliers, mainly %y %oosting the
amount of oil it purchases from African countries. .( http!!www.glo%al#%riefing.org!93&9!&3!india#
africa#trade#a#uni7ue#relationship! ". Almost one 7uarter of India-s crude oil imports are sourced
from Africa. The 5il and /,+hina and Mapan. India according to
International nergy Agency (IA" ,due to the current growth rate ,India will have to increase its
energy consumption %y atleast .' percent annually .According to IA, *y 939), India willtake
over Mapan and %e the worldLs thrid largest net importer of oil after >nited /tates A
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government will have to follow a stratergy to meet the rising demands of oil and look for num%er
of options related to various energy sources.
IndiaLs foreign policy has two main aspects on energy %ases a%road ,one is 2INB/I:I+ATI5<
and other is I
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of over ?&9 %illion investment a%road specially in Africa. In 933) , =ittal /teel and 5 with =auritius for
exploration of hydrocar%on deposists off the island nationLs coast.(I/T :5B 5I0
A
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development cooperation uses aid to facilitate other financial flows, technical assistance, few
grants, export credits, de%t relief and unilateral ero#tariff access for African products. India also
refrains from the use of political and economic conditionalities in its development cooperation
programme. The third summit promises to %e a milestone and is much %igger and grander than
the two previous summits held in
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social leaders. The reasons for India-s involvement in >< peacekeeping operations in Africa are
the de#escalation of conflict, creating an atmosphere suita%le for safeguard of its national interest.
India and Africa can also cooperate on piracy of the coast of /omalia.
Idia Techica# Ec))4ic C))(erati) Pr)7ra44e -ITEC/
India poses skilled manpower and technology more appropriate for development in poor countries
around the world for this purpose India started the Indian Technical and economic cooperation
(IT+".this programme has helped to strengthen the administration and economy of infrastructure
projects. India was the first Asian country to %ecome a full mem%er of the African capacity
%uilding foundation and committed a million dollar ? to %uild capacity for poverty alleviation and
sustaina%le development in Africa.
TEAM 9 ad LOCS
The government of india and ; west African country# +had, *urkina faso, 6hana, =ali, /enegal,
+oted-s Ivoire, 7uatorial 6uinea , 6uinea $*issau have a regional cooperation called
technoeconomic approach for Africa india movement. Its aim is to evolve a strong %ond through
the development of greater economic institutional linkage and partnership in trade and industry.the
economic importance of team to india lies in the oil reserves of the gulf of 6uinea consisting
@3C of africa-s oil production.
ISA! a triit8 )f iterati)a# trade
The India *rail /outh Africa dialogue on economic imperatives formulates agenda of cooperation
in the spirit of south south cooperation. According to (>
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time. =oreover, India and Africa can jointly undertake active and aggressive patrolling, make the
2ji%outi +ode of +onduct as legally %inding as possi%le, make payment of ransom illegal, look at
modalities of prosecution and expand capacities within the prisons. India and countries in Africa
share similar challenges of dealing simultaneously with energy security, climate change and socio#
economic development. 6iven that India and Africa will %e one of the most vulnera%le to the
negative impacts of climate change and its varia%ility, decision#makers in India and Africa are
%eginning to cooperate at a myriad of levels. It would %e naVve to expect countries to %e driven %y
anything less than domestic stakeholders, national interests and local realities, %ut it is understood
that they co#operate on mitigation, adaptation, on further improving projections and predictions of
climate change data, deforestation and incentive mechanisms for %est practice, technology transfer
(especially renewa%le sources of energy of which India is a major producer" and capacity %uilding,
and to cope with insecurity and climate#related development challenges. This will ena%le India
and Africa to arrive at a multilateral agreement that is e7uita%le and represents the development
concerns of the developing world.
India-s foray in Africa has led to improved impact on the terms of trade for raw materials
especially oil, coal, metals and minerals. This has led increased prices for commodities.
+onse7uently, African countries have greater export earnings and higher growth rates. Africa has
%een growing at approximately 'C for the last five years and provides a huge market for Indian
manufacturing goods like textiles, pharmaceuticals, light machinery, transport vehicles like trucks.
India-s relations with Africa are time#tested and historical. 4owever, in recent years the affiliation
has %een revitalised. *oth continuity and change feature in India-s evolving relations with Africa.
India-s foray into Africa may %e seen as a continuation of the past trend of supporting weaker
allies. India and Africa can cooperate with each other. The cooperation should have a positive
impact on the development aspects of India and Africa. http!!%logs.lse.ac.uk!ideas!93&9!31!india#
and#africa#towards#greater#cooperation#and#growth! " Terrorism is challenge the proliferation of
terrorist and extremist groups in the continent like Al#aeda in the =aghre%,
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It has %een o%served that though the trade relationship %etween two countries is improving,
however, there are some of the hindrances that are faced %y the %usiness firms in %oth the
countries. 4igh transaction costs due to exporting goods from India to Africa have %een a major
impediment for Indian exporters. The shipping and insurance costs keep on increasing, which is
why, Indian exporters prefer to sell on Hon delivery %asis. /econdly, /mall and medium
enterprises in India, accounting roughly 13C of total Indian exports are unaware a%out the
developments of Africa. /o a need has %een felt to update the knowledge a%out the African market
among the Indian %usiness market#%oth large and small. =oreover, getting work permit!visa is
particularly difficult in some of the African countries .This create hurdle for the employees who
want to work in Africa. /ome of the other hurdles impeding Indian investments in Africa that has
%een o%served as access to capital8 a%sence of %ilateral investment treaties8 and, smaller market
sieW (International Mournal of /cientific and Besearch Pu%lications, Nolume 1, Issue , =arch 93&1
I//< 99)3#&), PP#@, www.ijsrp.org".
/ome of the challenges are Internal distur%ance, adverse impact on ecosystem ,china factor, etc.
5il producing states of
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Ste(* t) (r)4)te c))(erati)
(&" There is a need of cooperation on %asic needs ,for example India is in need of energy sources
for the development of its economy while
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7uality#conscious middle class consumers has enhanced the attractiveness 7uotient of %oth Africa
and India. The India#Africa trade is estimated to %e around ?@3 %illion, and if the current optimistic
trends are anything to go %y, the two sides should %e a%le to ramp up their %ilateral trade to ?&33
%illion in the next 9# years.
De5e#)(4et )f the Parter*hi(
/ince %oth India and Africa launched an am%itious and multi#layered summit process in the
summer of 933;, India has pledged over ?;.) %illion in 0ines of +redit for a wide array of
development projects across the emerging continent. 5ver ') per cent of this soft loan package has
already %een dis%ursed. 6oing %y past record, the new Indian government is expected to announce
an am%itious multi#%illion dollar developmental package at the < cele%rates its @3th anniversary, India and Africa should join hands to
fructify the long#deferred dream of the reform and expansion of the >< /ecurity +ouncil, with
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seats for %oth
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faster than India. Eith a population of a %illion#plus, Africa is a market of tremendous
conse7uence. It is home to 3 per cent of all minerals found in the world. The >/ 6eological
/urvey estimates over &1 %illion %arrels of gas and 9)3 trillion cu%ic feet of gas reserves in coastal
AfricaYmore than that in >A and Neneuela. IndiaYa net importer of fuel and consumer of rare
mineralsYcan scarcely afford to ignore the alternate view of the continent.
Partnership with Africa is an idea that visited India in the past and escaped success. India-s
engagement with Africa was anchored more in political rhetoric and less in strategic realismYits
history is littered with notions of civiliational connections, acronyms like
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instance, India needs fertilisers. =orocco has phosphate reserves, 6a%on has gas. Ehy not set up a
fertiliser plant in Africa for IndiaU If =ake in India is to succeed, India will need to carve a share
of Africa-s consumption story. This re7uires expansion and setting up overseas facilitiesY%y auto#
makers, pharma giants, and consumer goods makers.
India has much to share and It is emerging as a major centre for renewa%les. Africa needs powerY
renewa%les and off#grid solutionsYand India has the expertise. Eith a land mass of over 3
million s7 km, Africa could well %e the food %asket of the future. India could help with yield
improvement and dairy development. It could also site farms for strategic reserves of perennial
imports like oils and pulses. *etween now and 93)3, the highest growth in working age population
will %e in India and Africa.. India can set up and train manpower.
Oes, India will %e hard put to find resources to fund the initiatives. It must leverage its mem%ership
of the *BI+/ *ank. It must seek partnerships with Mapan and the >/. It is also an opportunity to
create a sovereign fund. =ore importantly, it needs a dedicated cadre to promote economic
diplomacy.
The narrative a%out India among the countries in Africa is rife with unmet expectations and failed
opportunities. A 933; proposal for a power project was delayed till 93&& for clearances and the
promised credit#line to fund the project. Eithout exception most complaints are a%out the Hslow
administrative process that stalls potential.
Identity and credi%ility is esta%lished on delivery, not promises. The perception of no#show or one
of poor show must %e erased. /uccess in geo#politics demands India must invest in the culture of
outcomes.
(http!!www.newindianexpress.com!columns!shankkarKaiyar!The#India#Africa#Partnership#Idea#
Third#Time#0ucky!93&)!&3!9)!article3)@;.ece "
Referece*:
http://www.newindianexpress.com/columns/shankkar_aiyar/The-India-Africa-Partnership-Idea-Third-Time-Lucky/2015/10/25/article3095738.ecehttp://www.newindianexpress.com/columns/shankkar_aiyar/The-India-Africa-Partnership-Idea-Third-Time-Lucky/2015/10/25/article3095738.ecehttp://www.newindianexpress.com/columns/shankkar_aiyar/The-India-Africa-Partnership-Idea-Third-Time-Lucky/2015/10/25/article3095738.ecehttp://www.newindianexpress.com/columns/shankkar_aiyar/The-India-Africa-Partnership-Idea-Third-Time-Lucky/2015/10/25/article3095738.ece