NEW DELHI: India has a fairly substantial presence in Africa and trade and investments in the continent are increasing. It is for the same reason that India is looking at a Pan-Africa Free Trade Agreement.“India’s trade is $98 billion with Africa. India’s investments are $75 billion, and we are expecting both this trade and investments in Africa to grow, so there is a pan-African larger continental Free Trade arrangement in the making. As it unfolds, I think it makes it easier to both trade with Africa and invest in Africa,’’ said External Affairs Minister S Jaishankar while addressing the Indian diaspora in Tanzania.
It may be recalled that less than a month ago, Commerce Minister Piyush Goyal after interacting with 15 Ambassadors from the African region had said India was open to FTA with Africa as a whole or with individual countries.
“India and Africa share remarkable friendship across decades and have the potential of becoming the powerhouse of the future. India would act as a trusted partner to expand trade, commerce, business, investment and opportunities with Africa,” Goyal had said in June.
Meanwhile, Africa is becoming the second-largest recipient of credit from India. 42 African nations have received about $32 billion which translates into a little less than 40 per cent of all credit extended by India during the last decade. India is trying to catch up with China which has a deep imprint across Africa primarily through its Belt and Road Initiative (BRI).
India finds a unified market in Africa but unified markets still require points of entry, regional hubs. That is why it is important for India to be connected with countries within Africa individually too.
India has just signed a Memorandum of Understanding for establishing the first IIT campus in Zanzibar.