India's Africa Policy: Toward a More Coherent Engagement
Africa is considered a foreign policy priority by India because even in the COVID-19 pandemic New Delhi took new initiatives to assist Africa through prompt despatch of medicines and later vaccines.
India’s Africa Policy need re-energizing
- Decline in India-Africa Trade: According to the Confederation of Indian Industry, in 2020-21, India’s exports to and imports from Africa stood, respectively, at $27.7 billion and $28.2 billion, a reduction of 4.4% and 25% over the previous year.
- The bilateral trade valued at $55.9 billion in 2020-21, fell by $10.8 billion compared to 2019-20, and $15.5 billion compared to the peak year of 2014-15.
- Decrease in investment by India in Africa: India’s investments in Africa saw a decrease from $3.2 billion in 2019-20 to $2.9 billion in 2020-21.
- The total investments over 25 years, from April 1996 to March 2021, are now just $70.7 billion, which is about one-third of China’s investment in Africa.
- Lack of diversity in India-Africa Trade: The composition of the India-Africa trade has not changed much over the two decades.
- India’s top three exports to Africa are mineral fuels and oils (processed petroleum products), pharmaceutical products and vehicles.
- The mineral fuels and oils, (essentially crude oil) and pearls, precious or semiprecious stones are the top two imports accounting for over 77% of our imports from Africa.
- India’s focus is confined to Indo-Pacific region: The geopolitical tensions in Asia and the imperative to consolidate its position in the Indo-Pacific region have compelled New Delhi to concentrate on its ties with the United Kingdom, the EU, and the Quad powers.
- Confinement of India’s security role: India’s security role in the Africa’s continental littorals has struggled to move beyond the anti-piracy agenda.
- The institutional capacity building efforts in terms of the provision of security and surveillance assets and critical technology to African navies have remained rudimentary.
Significance of India’s Africa Policy
- India has major centres of exports and imports in Africa: India’s top five markets today are South Africa, Nigeria, Egypt, Kenya and Togo and the countries from which India imports the most are South Africa, Nigeria, Egypt, Angola and Guinea.
- Geo-political and social engagement of India in Africa: India’s role in peacekeeping in Africa, in lending support to African counter-terrorism operations, and contributing to African institutions through training and capacity enhancing assistance.
- India’s technical cooperation with Africa: Information technology (IT) is an important pillar given the role of the information and communication technology (ICT) sector in India’s growth story and the importance most African leaders attach to ICT sector development.
- India-Japan-Africa Growth Corridor (IJAGC): It represents a joint Indo-Japanese effort aimed at building infrastructure in Africa which is meant to be complemented with digital connectivity across Africa.
- Economic importance of India’s Africa Policy: The Indian and African economies represent two of the world’s most dynamic economic growth stories.
- Many of the world’s fastest growing economies are in Africa and the combined GDP of the continent is $2.4 trillion.
- By 2030, Africa will represent almost a quarter of the world’s workforce and consumers.
Measures to be adopted to re-energize India’s Africa Policy
- Fresh allocation of financial resources to Africa: India must allocate fresh financial resources for grants and concessional loans to Africa as previous allocations stand almost fully exhausted.
- International ally support for India’s Africa Policy: India-EU Summit has identified Africa as a region where a partnership-based approach will be followed.
- A robust partnership plan for Africa should be announced when the first in-person summit of the Quad powers which is going to be held in Washington.
- Ability to raise its security game in Africa: Africa’s maritime sector has shown great promise for economic development with rising economic development and the gradual integration of African states into the global economy.
- Economic relations should receive the top priority: Indian and African governments must exert themselves more to address the concerns and grievances of Indian business and industry.
- The formation of an ‘India-Africa Business Forum’ for each of the five regions of Africa should be considered.
- Focus on multiple sectors of mutual complementarity: The priority needs to be accorded to healthcare and pharma, agriculture, education and capacity building, energy, digital cooperation especially fintech, trade and investment, and the Blue Economy.
- Capacity building in India-Africa cooperation: The flagship programme i.e. India Technical and Economic Cooperation (ITEC) needs an independent, critical evaluation with a view to making it more modern, effective, and responsive to African needs.
Road ahead
- It is time to seize the opportunity and restore Africa to its primary position in India’s diplomacy and economic engagement.
- It is essential to impart a 21st century complexion to the partnership with Africa which means developing and deepening collaborations in health, space and digital technologies.
- There is now a growing view among Indian analysts and policymakers that India’s growing maritime influence leaves New Delhi with little option but to raise its involvement in maritime security of coastal Africa.
- Clear strategy for African development: It should prepare a focused Africa strategy for the next decade and identify a few areas for closer cooperation.
- It will help improve development outcomes and make India’s development cooperation programme more effective.
- Harness Indian civil society organisations, NGOs, and Indian diaspora: The Indian government should explore greater collaboration with these organisations to implement development projects in Africa at low costs.
- Promote development-friendly private investments: India should try to support Indian companies making investment in development-friendly projects for mutual benefit.
- Improve the experiences of Africans in India: The Indian government should ensure that Africans studying or working in India are safe and enjoy their stay in the country.
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