Initiatives by Commerce Ministry to Boost Trade with African Countries (Download PDF)

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In order to strengthen the trade and economic partnership between India and Africa, a two days Digital Video Conference (DVC) interaction was organized. This interaction was organized on 3rd and 6th May 2019.

This is image of Indian trade and Africa

This is Image of Indian Trade and Africa

This is image of Indian trade and Africa

Interaction Overview & Highlighted Issues

  • Over 400 members of the Indian business community in 11 African countries attended the DVC.

  • Adoption of a long term multiprolonged strategy would help in achieving the trade and economic objectives of both the countries.

  • As per the ministry of commerce, India’s total trade with the African region during 2017 - 18 was USD 62.69 billion which stands at 8.15 per cent of India’s total trade with the World.

  • Some Issues including improving the line of credit system and develop a facility for affordable and competitive funding and Setting up of Indian Banks and Financial institutions in Africa.

  • Liberalization of Visa polices from both sides thereby enabling direct flights between both the countries was highlighted during interaction.

  • In 2017 - 18 Credit lines to Africa had a 40 % disbursement rate, and of the $10 billion in credit promised between 2015 - 2020, only $1.5 billion have been committed through 2019 and an even smaller fraction disbursed.

  • India’s new concessional financing scheme, which subsidises private Indian companies bidding on African infrastructure projects, shows no signs of functioning a year after its announcement.

  • Focus on efficacy and timely action in terms of delivering promises will help India achieve this goal.

  • The objective is to be to promote south-south cooperation and boosting trade and investments between India and Africa across key sectors such as Agriculture, Renewable Energy, Education & Skill Development, Healthcare, Information Technology, IT enabled Services and so on.

India’S Relations with Africa

  • With India’s attention on South Asia and on inward looking foreign policy, Africa was neglected by India. Though India in this phase continued to support Africa against Apartheid in between 1970s and 1900s.

  • Since 2008, India and Africa relations have been institutionalized. India has started engagement with African Union (Pan African Platform). So far 3 summits have been organized under the aegis of India Africa Forum Summit. It is to be noted that the approach of Government of India is also influenced by China. China has also initiated the Forum for Africa and China cooperation in the year 2000.

  • Indian government promoted several strategies towards Africa:

  • Pan African level engagement

  • Partnership with regional organization

  • Development partnership through IBSA and BRICS

  • Bilateral engagement with countries

  • Involving Indian communities and Indian Diaspora

- Published/Last Modified on: July 31, 2019

Economy, International Relations/Organizations

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