Present status of Trade:
- India’s total trade with the African region during 2017-18 was USD 62.69 billion (8.15% of India’s total trade with the World).
- India’s share of exports to African countries as a percentage of India’s total exports to the world was of the order of 8.21% in 2017-18.
- Africa region’s share in India’s total imports from the World accounted for 8.12% in 2017-18.
Trade opportunities in Africa:
- Africa present immense opportunities for India with the world’s largest land mass, 54 countries, a population growing to be almost equivalent to that of India, huge mineral resources, oil wealth, a youthful population, falling poverty levels and increasing consumption patterns.
- Thus, Africa has a huge demand for new business models for market entry, stable market access, entrepreneurship and investments in transport, telecom, tourism, financial services etc.
- Indian Diaspora in Africa constitutes 9.11% of the total Diaspora of India which is playing a vital role in all fields like politics, business and education.
The major issues highlighted by the Indian Business Community in Africa are:
- Improving the Line of Credit system and developing a facility for an affordable funding.
- Setting up of Indian Banks/financial institutions in Africa.
- Reviewing and liberalizing visa policies from both sides.
- Need for direct flights between the India and African countries.
- Exploring the possibility of rupee trade to address the issue of shortage of dollars in region.
- Development of a robust trade dispute settlement mechanism.
- Establishment of country chapters of FICCI or CII in Africa.
- Frequent visits of policy makers, chamber of commerce and investors for familiarization with local business and investment regime for informed decisions.
