Professional Documents
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Submitted To:
Dr. Anuj Sharma
TABLE OF CONTENTS:
Introduction
Objectives
India-Africas Burgeoning
Trade & Investment Relationship
India-Egypt Economic &
Commercial Engagement
India-Nigeria Economic &
Commercial Engagement
India-Morocco Economic &
Commercial Engagement
India-Ghana Economic &
Commercial Engagement
Factors Hindering India's Trade &
Investment Relationship with Africa
Indias Development Assistance to Africa
Indian AssistanceAfrican &
Indian Business Views
Key Findings
Recommendations
References
03
03
04
08
11
13
15
17
18
20
20
22
25
05
06
09
16
06
07
08
16
18
19
21
INTRODUCTION:
Trade between India and Africa has a long and distinguished history. It goes back thousands of
years to the days when Indian traders, using the seasonal monsoon winds. 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
been building strong and mutually beneficial associations since long. India established its trade
relations with the African countries as long back as in the 16th 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 building partnerships. In recent years, Indias
economic partnership with the African countries has been lively, extending beyond trade and
investment to technology transfers, knowledge sharing, and skills development. India is Africas
fourth-largest trading partner behind the EU, China and the US, and a significant investor across
the continent.
The global economy is increasingly being driven by the growth and dynamism of the "South". The
financial crisis and the subsequent recovery led by many countries in the 'South' has served to
further underline the seismic shift reshaping the global economic order. The traditional North-South
trade equation is being increasingly complemented by a dynamic trade and investment relationship
between developing countries, and this is becoming a major source of economic growth and
employment generation. India's and Africa's rapidly expanding trade and investment relationship
is one example of this dynamic change. And countries like Nigeria, Morocco, Ghana, and Egypt
contribute to this development in a major way.
Bilateral India-Africa trade has grown by nearly 32% annually between 2005 and 2011, including
through the economic crisis. India-Africa trade is projected to reach US$ 90 billion by 2015. Even
more importantly, Indian private investment in Africa has surged, with major investments having
taken place in the telecommunications, IT, energy, and automobiles sectors.
India and Africa's partnership has entered a new era. Close political relationships are being
invigorated by a flourishing trade and investment relationship. This new trade and investment
relationship could be crucial in the struggle to lift millions out of poverty.
Indian private sector organizations, under the stewardship of the Confederation of Indian Industry
(CII), have been active in Africa for the last several years. They have done so through mobilizing
government, institutional as well as private initiatives, forging stronger public-private partnerships
(PPPs) and joint venture initiatives between African and Indian firms.1Particularly, the annual CIIEXIM Bank India-Africa Project Partnership Conclaves (hereinafter, the India-Africa Conclaves)
have developed into a platform for businesses and government enterprises to find a credible access
point for appropriate technologies and partners.
OBJECTIVES:
To analyze India Africa trade relations to countries Nigeria, Morocco, Ghana and Egypt.
To identify the barriers to bilateral trade between the two blocs and to identify measures that would
help integration into each other's value chains.
To examine how IndiaAfrica business and investment ties could be further strengthened.
To identify the key aspects of India Africa trade relations to countries.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)
Table 2: Position of countries in Africa continent with respect to trade with India
Rank in
India's
Total
Export to
Trade
with
African
Region
(Year
2008)
1
Importers
Total
Trade
value in
2007 (in
USD Bn)
%age
Growth
Over
Previous
Year
Total
Trade
value in
2008 (in
USD Bn)
%age
Growth
Over
Previous
Year
%age
Share of
Country
in India's
Total
Trade
Year
2008
Nigeria
8.01
21.09
11.49
43.49
2.31
Egypt
3.07
42.75
3.84
25.23
0.77
Morocco
0.69
1.86
1.25
80.14
0.25
13
Ghana
0.9
143.94
0.75
-16.69
0.15
Another measure of the India-Africa economic story is investments that have seen an upward trend
in recent years. Particularly, Indian investments in Africa have grown substantially across the
continent and sectors. Today, Indian multinational enterprises (MNEs) presence in Africa can be
felt in sectors ranging from energy to mining, and telecommunications to IT-enabled services.
Although data on Indian investments to Africa remain sketchy, some sources estimate the stock of
investment at over US$ 32 billion. African MNEs, particularly from South Africa, have also
ventured into India over the past decade with presence in infrastructure development, breweries,
financial and insurance services.
There are some distinctive features of Indian operations in Africa. Indian companies investing in
Africa vary in size and are typically either privately owned or under public private ownership. Most
Indian firms in Africa also acquire established businesses, or Brownfield investments; are less
vertically integrated; prefer to procure supplies locally or from international markets engage in far
more sales to private African entities; and encourage the local integration of their workers.
India and Africa are two energetic regions whose dynamism is feeding into each other's growth.
However, as this report highlights, there is significant scope to extend further the already dynamic
bilateral commercial relationship. Particular scope exists to broaden the goods and services traded,
and also the number of partners involved.
FY (July-June)
2011-12
2010-11
2009-10
2008-09
2
3
5
5
11
12
11
12
The total bilateral trade increased by more than 37 per cent to reach US$ 4.63 billion during the
financial year 2011-12 from US$ 3.18 recorded in the previous year. In 2012 (Jan-Oct), the bilateral
trade stood at US$ 3.54 billion. During the FY 2011-12, Indias export to Egypt grew by 37 per
cent to reach US$ 2.06 billion up from US$ 1.50 billion in FY 2010-11. The major five exports
item includes frozen meat, Milled Rice, Cotton yarn, Synthetic Filament Yarn and Light Oils.
During the same period, Indian imports from Egypt increased by more than 37 per cent to reach
US$ 2.30 billion. Chief import items include Petroleum, LNG, Calcium Phosphate, Cotton and
partially refined oil. The bilateral trade balance is adverse to India and stood at US$ 2.38 billion,
largely due to import of petroleum and petroleum products which comprises about 85 per cent of
our imports basket. Indian Investments in Egypt. The total Indian Investment in Egypt is around
US$ 2.5 billion which covers more than 50 projects. Indian companies continued to invest in the
Egyptian economy during the year and no Indian company left the country during the year.
Under the umbrella of ASSOCHAM, twenty five Indian companies participated in the
International Fair 2012 in Cairo from 18-30 March.
SKG Sangha, a leading Indian Non-governmental organization (NGO) in May 2012 signed an
MOU in the field of renewable energy in partnership with UNDP and the Egyptian Ministry of
State for Environmental Affairs for setting up 100 biogas plants in Asuit and Fayoum
governorates of Egypt.
Maharashtra Knowledge Commission Ltd (MKCL India) set up a joint venture company,
MKCL Arabia Egypt to provide e-learning, e-governance solutions to both Egyptian
educational institutions as well as governmental organizations.
A ten-member CII business delegation led visited Cairo from 2nd to 6th November, 2012. On
3rd November, at the initiative of Indian Embassy, India Business Forum is launched by the
CII in the presence of major Indian investors in Egypt.
An 11-member delegation led by Minister of Works of Nigeria visited India from February 27
to March 2 2012 to study the business model of National Highways Authority of India.
The S&T Minister led a 4-member delegation for the India-Africa S&T Ministers Conference
on March 1-2, 2012.
Minister of Labour & Productivity led a 3-member delegation for IBSA International
Workshop on March 1-3, 2012.
Former Nigerian President Olusegun Obasanjo visited India in March 2012 mainly for
encouraging economic ties and was received by Honble PM on March 12 2012 and CITM on
March 13 2012.
A delegation led by MOS of Defence of Nigeria Honble Mrs. Erelu Olusola Obada visited
Delhi on a 4-day official visit in April 2012 to participate in the DefExpo India 2012.
Nigerian FM Dr. Ngozi Okonjo-Iweala paid an unscheduled visit to India on March 28 2012
to lobby for her candidature for the President of World Bank with the leaders of BRICS.
A 6-member Nigerian delegation led by Honble Minister of S&T visited India to participate
at 3rd Bengaluru Space Expo on September 12-15, 2012.
Nigerian Minister of Agriculture & Natural Resources visited India to attend 40th Year
Celebration of ICRISAT at Hyderabad on Sept 24-26.
A delegation led by Governor of Borno visited India in September 2012. He met Honble
Minister for Renewable Energy, among others.
Prof.(Mrs) Ruqayyatu A. Rufai, Nigerian Education Minister led an 11-member delegation to
attend Ninth E-9 Ministerial Review Meeting in New Delhi from 8-10 November, 2012.
Permanent Secretary in the Ministry of Local Govt of Nigeria led a delegation to India on a
study tour and said on May 9, 2012 measures taken by India to eradicate poverty and also
steps to bring in economic reforms are worth emulating.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)
10
H.E. Ms. Ama Peppele, Minister of Land & Housing went to India in last week of October to
take part in Commonwealth Conference.
Governor of Benue State visited India for 5 days starting March 14, 2013.
Governor of Lagos attended India-Africa Conclave in New Delhi in March 2013.
Governor of Kano visited India in February 2013 to attend the Garment Fair.
Minister of Communication Technology visited New Delhi / Kolkata from March 19 -21, 2013
to attend IndiaSoft-2013. She also had a meeting with her Indian counterpart.
11
Furthermore, a number of Indian companies are participating in Nigerias Upstream Sector of Oil
and Gas, for example, ONGC Mittal, Sterling and Essor won 6 oil blocks during the 2005 2007
Nigeria Oil block bids, which not only boosts existing trade and investment relations between the
two countries but to a large measure, strengthen the efforts of the two Governments to make
economies, trade and investment the central focus of their long- term relations.
Nigeria is home to a large population of Indian nationals. The High Commission of India in Nigeria
estimates that the Indian nationals in Nigeria are over 35,000. More important than the numbers is
the fact that the Indian Community is well entrenched in Nigeria and they are involved in several
local and community Projects and activities.
Many in the Indian Community are of 3rd to 4th generation descent, their grandparents or great
grandparents having arrived during the colonial period. Many Indian nationals are now naturalized
Nigerians and most of them are actively involved in general trading; the service sector;
manufacturing; construction and aviation/air services industries and enterprises.
In this regard, an Indian National established in 1923 a family business called K. Chellarams which
has become a major group of companies with investments in agriculture and commodities, retailing,
manufacturing, motor vehicles, etc. It may surprise you all to know that Olam International Group,
a Singaporean Company, has its origin in Nigeria having been established by K. Challarams.
Similarly, Nigerians living in India is estimated to be 15,000. In 2012, 40,000 Nigerians were issued
visa to India, out of which 80 % are medical tourist followed by students, officials and business
travelers. All these show the extent of the strong ties and bond that exist between Nigeria and India.
12
13
In October 2010, Honble Minister of State for Commerce and Industry, Shri Jyotiraditya Scindia
visited Morocco. During the visit, the Honble MOS(C&I) met with the Moroccan Minister for
External Commerce, Mr. Abdellatif Maazouz and discussed various aspects of bilateral trade and
commerce. The Honble MOS(C&I) also participated in the World Economic Forum for Middle
East and North Africa held in the city of Marrakech.
For long, India has been one of the major markets for Moroccan phosphate and its derivatives.
Other main items of export to India are metallic ores and metal scrap, semi-finished products
and inorganic chemicals. The main items of Indias exports to Morocco are cotton yarn,
synthetic fiber, transport equipment, pharmaceuticals, agricultural implements, chemicals,
spices and manufactured metals. The balance of trade has been in favour of Morocco because
of imports of phosphoric acid and rock phosphate by India. The quantum of bilateral trade,
which was US$ 1.63 billion in 2010, reached US$ 2.04 billion in 2011 (including Indias exports
to Morocco at US$ 587.2 million and Indias imports from Morocco at US$1.45 billion). The
trade turnover between the two countries stood at US$1.61 billion in 2012 (including Indias
exports to Morocco at US$ 517.7 million and imports at US$1,101.6 million); the slight decline
in trade vis-a-vis 2011 could be attributed to the global economic meltdown, the current weak
state of the European economy, regional turmoil and also due to the huge trade growth in the
base year. Trade volumes are expected to pick up in the following years.
An India-Morocco joint venture in fertilizer sector in Morocco, called IMACID, located at Jorf
Lasfar, about 150 Kms south of Casablanca, was set up in November 1999 between M/s
Chambal Chemicals & Fertilizers Ltd. of the Birla Group and Office Cherifien des Phosphates
(OCP) on the Moroccan side to produce phosphoric acid. In 2005, Tata Chemicals Ltd. joined
as a third equal partner in this joint venture. At present, the JV is producing around 430,000 MT
per annum of phosphoric acid, nearly all of which is imported by India. The Moroccan
phosphate organization, OCP, has invested in Paradip Phosphates Ltd. in India.
Among other business activities, TATA Motors has a plant in Casablanca for manufacturing
bus bodies. Ranbaxy has a technical collaboration with Afric-Phar for distribution of their
finished products. It has set up their manufacturing plant for medicines in Casablanca and
commercial production is expected to begin. PepsiCo India has acquired the beverage makers
entire franchise bottling operations in Morocco. Indian industry and business associations CII,
FICCI and ASSOCHAM have institutional arrangements with Moroccan industry and business
associations. A number of trade delegations from various industry and export promotion
councils of India, such as led by ASSOCHAM, CAPEXIL, TEXPROCIL and EEPC have been
visiting Morocco periodically. During these visits, a number of trade promotion activities such
as expositions, buyer-seller meets, etc., are organized.
14
Agriculture: Agriculture is the Moroccos strongest economic sector shares wheat, barley,
citrus fruit, vegetables, olives, Fish and livestock. Moroccos agricultural output makes it
one of the best ranking countries in the world. Moroccan farmers have lately carved a large
niche in Europes booming organic foods market. The country is missing out on a
significant opportunity exporting agricultural produce without processing as it is not
getting real value from European market. India as the second largest producer of fruits and
vegetables knows to deal this issue effectively and Indian investors are more than welcome
in this very field.
Industrial Sector: There are strong sectors working in mining (phosphates, manganese,
lead, silver, and copper), energy, manufacturing (which includes handicrafts), construction,
services and tourism plays an important role in the Moroccan economy.
15
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
1.
EXPORT
537.85
390.52
579.77
800.35
744.05
2.
%Growth
-27.39
48.46
38.05
-7.04
3.
178,751.43
251,136.19
305,963.92
300,274.12
4.
%Growth
-3.53
40.49
21.83
-1.86
5.
%Share
0.29
0.22
0.23
0.26
0.25
6.
IMPORT
172.63
147.01
159.75
403.67
281.66
7.
%Growth
-14.84
8.67
152.69
-30.22
8.
288,372.88
369,769.13
489,319.49
491,945.05
9.
%Growth
-5.05
28.23
32.33
0.54
10.
%Share
0.06
0.05
0.04
0.08
0.06
11.
TOTAL TRADE
710.48
537.52
739.52
1,204.02
1,025.71
12.
%Growth
-24.34
37.58
62.81
-14.81
13.
467,124.31
620,905.32
795,283.41
792,219.17
14.
%Growth
-4.47
32.92
28.08
-0.39
15.
%Share
0.15
0.12
0.12
0.15
0.13
16.
TRADE BALANCE
365.22
243.51
420.02
396.69
462.38
17.
-118,400.95
-109,621.45
-118,632.94
-183,355.57
-191,670.93
185,295.36
303,696.31
488,991.67
The Government of India has extended $228 million in lines of credit to Ghana which has been
used for projects in sectors like agro-processing, fish processing, waste management, rural
electrification and the expansion of Ghana's railways. India has also offered to set up an IndiaAfrica Institute of Information Technology (IAIIT) and a Food Processing Business Incubation
Centre in Ghana under the India-Africa Forum Summit. India is among the largest foreign investors
in Ghana's economy. At the end of 2011, Indian investments in Ghana amounted to $550 million
covering some 548 projects. Indian investments are primarily in the agriculture and manufacturing
sectors of Ghana while Ghanaian companies manufacture drugs in collaboration with Indian
companies. The IT sector in Ghana too has a significant Indian presence in it. India and Ghana also
have a Bilateral Investment Protection Agreement between them
India's Rashtriya Chemicals and Fertilizers is in the process of setting up a fertilizer plant in Ghana
at Nyankrom in the Shama District of the Western Region of Ghana. The project entails an
investment of US$1.3 billion and the plant would have an annual production capacity of 1.1 million
tonnes, the bulk of which would be exported to India. There are also plans to develop a sugar
processing plant entailing an investment of US$36 million. Bank of Baroda, Bharti Airtel, Tata
Motors and Tech Mahindra are amongst the major Indian companies in Ghana.
16
17
Removing the bottlenecks to investments will be imperative for African countries to ensure that
they move to a sustainable investment-led development model. Investments from India will also
bring in technology that is "Appropriate, Affordable and Adaptable", pitched as the "Triple A"
technology transfer mode, during the 8th India-Africa Conclave.
18
For capacity building, the ITEC programme is collaborating with 48 Indian institutions that offer
as many as 220 courses in a wide variety of areas. For instance, in 2011-2012 nearly 8000 African
civilians benefited from training courses under ITEC and other bilateral schemes. Another 250
civilians received training under the programme through regional schemes conducted with AfroAsian Rural Development Organization (AARDO), African Union (AU), Pan African Parliament
and EAC among others.
At the 2nd India-Africa Forum Summit in 2011, India pledged to extend LOCs worth US$ 5.4
billion until 2014 to support the developmental requirements of India's African partners. The
triennial Summits, starting in 2008, are recognition of the growing importance of India-Africa ties
where the highest leadership from India and African countries come together for a structured
interaction and political and economic cooperation. The Summits have also become a platform
where the Government of India identifies the areas of co-operation, and where in existence, monitor
and expand such cooperation. It did so through the "Framework of Co-operation" in the 2008
Summit and adopted a follow-up "Framework for Enhanced Co-operation" during the 2011 Summit
that act as a road-map for implementing agencies in India and Africa.
19
KEY FINDINGS:
INDIA-AFRICA TRADE GROWTH 2005-11 HAS BEEN HIGHER THAN CHINAAFRICA TRADE.
India has been the fastest growing export market for African exports with growth of over 41.8%
annually between 2005 and 2011 higher than the 28% recorded with China. Similarly India's
exports to Africa grew at a brisk 23.1% between 2005 and 2011 -comparable to the 25.6% exports
growth achieved by Chinese exports to Africa. India-Africa overall trade grew at 32.4% during the
period, which is higher than China-Africa trade growth at 27%. However, the total value of IndiaAfrica trade (at US$ 63 billion in 2011) is only 38% of the value of China-Africa trade (at US$ 166
billion). India-Africa trade from a lower base, but has been largely fuelled by commodity exports
from Africa and a diverse range of high to medium technology exports from India.
20
The two products, crude oil and liquefied natural gas, account for nearly two-thirds of Africa's
exports to India. The top six products, at the HS 6 level, account for over 87% of African
exports. This denotes a high product concentration of exports that are mainly in commodities.
Due to the persistent rise in global commodity prices between 2005 and 2011, value of Africa's
exports to India have risen faster than the volume of commodity exports, thus exposing exports
to global commodity price shocks.
25% of Africa's exports have some technology content, mostly in medium to low technology
goods. This export segment has grown over five-fold since 2001. Growth in oil and other
natural resources has obscured this fact. The top six exporters from Africa, viz., Nigeria, South
Africa, Angola, Egypt Algeria, and Morocco account for 89% of total African exports to India.
They are also the major exporters of commodities: Nigeria, Angola, Egypt and Algeria are
exporters of crude oil; South Africa's major exports are gold and coal; while, Morocco exports
mainly phosphates. The top six exporters also run a trade surplus of US$ 24.5 billion with India
that is partly offset by India's trade surplus with 40 of the 54 African countries.
India's exports to African countries are diversified at the product level and in destinations.
India's export basket to Africa is composed of refined petroleum products, automobiles, and
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)
21
pharmaceuticals, electrical and industrial machinery. Nearly 98% of Indian exports to Africa
have undergone some value addition with medium to low technology products accounting for
37% of the export basket. Exports share of high technology products (14%) and medium to
high technology products (26%) have seen an increase from the baseline levels in 2001, while
exports of low technology products (22%) have declined sharply from 41% in the baseline
period.
The top six destinations for India's exports account for just over 60% of total exports to Africa.
India's exports are also well diversified among the five regions of Africa, with East Africa
emerging as the top destination. This bears testimony to the efforts made by the Indian private
sector and the government that have stepped up the market expansion activities by making
African markets more accessible for Indian goods.
RECOMMENDATIONS:
TO BOOST AFRICA'S EXPORTS OF GOODS AND SERVICES TO INDIA
To sustain the growth in India-Africa trade there is a need to broaden the trade basket,
especially for Africa's exports. Greater value-addition to commodities within Africa is
necessary to enable African economies to benefit further from expanding trade with India.
Exports of value-added products require, inter alia, a positive business environment, access to
capital, skilled labor and sustained FDI that can be achieved through mainstreaming of trade in
national development strategies.
In the short to medium-term, African countries should look to overcome the hurdles faced by
African firms in exporting to India. From the CII-WTO Survey, it emerged that for African
exporters' access to Indian buyers, trade finance and informal controls and shipment delays are
some of the major concerns. The mitigation of transaction costs will have a significant impact
in enhancing the export competitiveness of African products. The focus, therefore, should be
on trade facilitation.
India's DFQF scheme DFTPI scheme for LDCs, holds great potential in boosting African
exports to India. The DFTP-I came into full force in August 2012 eliminating applied tariff
rates on about 85% of Indias total tariff lines, particularly, on tariff lines that comprise 92.5%
of global exports of all LDCs. This can significantly improve market access for 33 African
LDCs. WTO figures for 2010 show that only 5.3% of LDCs' imports into India came in dutyfree. Moreover, only 21 African LDCs are currently beneficiaries of the scheme while many
LDC exporters may simply be unaware of it. During the latest India-Africa conclave, African
leaders have suggested that Indias DFTP-I scheme should be made more comprehensive.
Preferential access has not yet been provided to LDC exports of poultry dairy products,
vegetables, fruits, unshelled cashew, coffee, tea, cereals, oilseeds, cocoa preparations,
beverages and spirits, chemicals, tobacco, rubber, raw silk, silk yarn, copper, iron and steel,
that are of major export interest to many African LDCs.
Diversification in African exports of services is also crucial for development of African
economies. Tourism, accounting for over 50% of African services exports, still holds immense
potential in exports to India by tapping into the growing tourism and business travel sector in
India. Bilateral co-operation and promotion of African tourism in India would increase
visibility and popularity of Africa as a travel destination.
22
For Indian exporters transport and logistics costs, poor business environment along with access
to African buyers are cited as major difficulties. The annual India-Africa Conclave is an
important forum to bring buyers and sellers together. In addition, dedicated trade meets
connected with a particular country or sector will help address information asymmetries as well
as bring the growth markets of Africa closer to Indian producers.
Due to high shipping costs, and cost of insurance in exports to African countries many Indian
exporters prefer to sell free on-board basis instead of on-delivery basis. This is generally not a
good practice when exploring new markets and engaging with newer or smaller buyers.
Lowering transaction costs and risks are crucial to enhanced trade between India and Africa.
The export credit and trade finance institutions of India are playing a major role in market
access initiatives of Indian firms in Africa.
EXIM Bank LOCs have historically galvanized Indias exports to Africa. However, there are
certain areas that mandate urgent attention, such as, delays in the release of sanctioned LOC,
monitoring of projects supported by LOC, greater transparency in the selection of projects to
be supported by LOC, and synchronization of different LOC projects that have received
funding from multiple sources.
Indian services exporters cite poor business environment and access to buyers as some of the
major impediments in exporting services to African countries. Many services firms also find
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)
23
that getting work visas/ permits is particularly difficult in some African countries. This should
be addressed at the governmental level to facilitate services trade.
The Indian SME sector requires information on the growth prospects in Africa and how their
products can find a market there. While business associations can play a role, the commercial
wings of Indian embassies in Africa can, and are playing a facilitating role by providing incountry research on market expansion opportunities available to Indian exporters.
India's investment-led trade approach could help sustain the dynamic trade growth between
India and Africa, and help extend trade both in terms of the number of partners involved and
also the range of goods and services traded. Investments for joint ventures between the
countries would best open up the route for enhancing goods trade.
Removing bottlenecks to Indian investments, including, protection of investments through e.g.
BITs, access to capital, improved business environment, is imperative to ensure that Africa
moves to a sustainable investment-led development model.
Greater cooperation in agriculture and agro-processing would have a great bearing on the food
security situation in both Africa and India. Africas farm sector is expected to grow to the tune
of US$1 trillion by 2030, although this growth will largely depend on adequate technology
infusion. Indian companies could help Africas agriculture sector in farm mechanization, agroprocessing and storage, investments in training and development of human resources for the
farm sector, Greenfield investments, local vendor development, setting up of agro parks in
Africa, setting up of horticulture industries and floriculture units, among others. In boosting
Africas agricultural value addition, India too can meet its own food needs through imports,
especially in pulses where India faces a major shortfall.
Lack of adequate investments is a key reason for the underutilizations of Africas hydropower
potential and other renewable and non-renewable energy sources. India has proven expertise
in energy generation and can partner African countries build their energy infrastructure through
manpower, technical and financial investments and engineering inputs.
There should be strong engagement among India and African countries across diverse services
sectors. India has comparative advantage in many services sectors, including, ICT, education,
vocational skills development, health and financial services in which Indian investments will
serve the continent well.
The Southern African region is an important non-oil trading region for India. To help increase
trade India and South African countries are looking to expand the India-SACU PTA towards a
comprehensive economic co-operation agreement incorporating services and investments. The
plans for a comprehensive economic cooperation partnership agreement with Mauritius, and
similar agreements with several other regional communities in Africa should also be studied
further. A joint study is also underway to work out a free trade agreement with COMESA.
India intends to "intensify aid-for-trade assistance" in the coming years. In view of this, greater
institutional mechanisms and global co-operation would help ensure that India's assistance
becomes more effective. India could benefit from the expertise of traditional donors on project
impact analysis and best practices to improve quality of delivery and introduce mechanisms for
better assessment of Indian project assistance.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)
24
Trilateral co-operation with traditional DAC partners and emerging partners from the South
could also complement development assistance in Africa. Key gains can be made in sharing
professional skills in the design and delivery of Aid for Trade programme as well as project
finance and technology transfer.
The shortage of well-trained trade professionals is a problem for developing countries, which
lack the institutional capacity to train them. It should be a priority for India to train trade
professionals and to build institutional capacity in the African nations for negotiations at
bilateral and multilateral forums
REFERENCES:
http://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/india_africa_
report.pdf
http://mea.gov.in/Images/pdf/Nigeria-January-2012.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Morocco_December2013.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Bilateral_Brief_for_xp_December_2012.p
df
http://www.mea.gov.in/Portal/ForeignRelation/Ghana-January-2012.pdf
http://www.ficci.com/international/54523/Project_docs/AfricaDesk.pdf
http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/weoselgr.aspx
http://focusafrica.gov.in/About_Africa.html
http://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/india_africa_
report.pdf
http://mea.gov.in/Images/pdf/Nigeria-January-2012.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Morocco_December2013.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Bilateral_Brief_for_xp_December_2012.p
df
http://www.mea.gov.in/Portal/ForeignRelation/Ghana-January-2012.pdf
http://www.ficci.com/international/54523/Project_docs/AfricaDesk.pdf
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