PLUTUS IAS REGISTERED BY ARGASIA EDUCATION PVT. LTD
Context:- The Government of India has designed a forward looking strategy to deepen relations with African countries. New Delhi’s engagement with the African continent has been multifaceted, with projects implemented under Indian lines of credit, capacity building initiatives, and cooperation in a range of sectors which is critical to its foreign policy matrix.
India and Africa relation so Far:-
- India’s relations with Africa date back to ancient Indus valley civilization which had the relation with the egyptian civilisation and with mesopotamian civilisation.
- Africa was a prime target of India’s diplomatic initiatives to promote the non aligned movement.
- The geographical proximity associated with easy navigability in Indian Ocean resulted in a well-established trade network between India and the Swahili Coast.
- More concrete relations between India and Africa began to emerge during the medieval era. This can be evident through the accounts of Venetian traveler Marco Polo.
- South Africa became colonized and M.K. Gandhi established Indian Natal Congress in 1894.
- Political connection during the colonial era was linked through Gandhi who began to protest in South Africa around the issues of registration of certificates etc.
Why Africa is important for India:-
- Africa has 65% of the world’s uncultivated arable land
- Africa employs over 60% of the workforce which accounts for almost 20% of Sub-Saharan Africa’s GDP, agriculture is critical to Africa’s economy.
- The African Continental Free Trade Area agreement is expected to improve cost competitiveness by reducing and abolishing the tariffs.
Analysis of Chinese engagement in Africa:-
- China is one of Africa’s largest trading partners along with Africa’s single biggest creditor.
- Its corporations dominate the region’s infrastructure market and are now entering the agri infra sector.
- Primary drivers of Chinese engagement with the region are:-
- Access to Africa’s natural resources along with its untapped markets
- Huge Support for ‘One China Policy’ from African nations.
- Chinese built industrial parks and economic zones in Africa which are attracting low cost, labour intensive manufacturing units that are relocating from China for low cost benefit.
- Chinese tech companies are laying critical telecommunications infrastructure, venture capital funds are investing in African fintech firms which are ever expanding across the region.
- Chinese firms are introducing agritech to combat traditional challenges in agriculture such as pest attack by using drone technology.
India’s Developmental Efforts in Africa:-
- Support in Fight Against Covid-19: India has shared Covid-19 management strategies through the e-ITEC initiative by providing Africans training, webinars exclusively aimed at training health-care professionals from Africa by Indian health experts.
- India is also sending consignments of essential medicinal supplies such as hydroxychloroquine (HCQ) and paracetamol to many African countries in addition to doctors and paramedics.
- Increasing Political and Economic Engagement: In the last few years, Africa has been the focus of India’s development assistance and also diplomatic outreach, as evident in plans to open 18 new embassies.
- Focusing on commercial issues as a priority by the Indian missions in the African countries.
- Review of trade and related issues with the 24 African countries through institutional mechanisms such as the Joint Trade Committee.
- Increased interaction among business houses and communities through joint business councils, joint business groups and CEO forums.
- India’s duty-free quota free tariff preference scheme for Least Developed Nation (LDCs) launched in 2008 has benefited 33 African states.
- Grants in Aid:- Africa is the second-largest recipient of Indian overseas assistance with Lines of Credit (LOC) worth nearly $10 billion spread over 100 projects in 41 countries after South Asia .
- Pan-African E-Network:- India has invested $100 million in the Pan-African E-Network to bridge the digital divide in Africa, this will help African in leveraging its strengths in information technology.
- Indian military academies offer training to military officers from a number of African states.
- India has also unveiled the Vision Document of the Asian Africa Growth Corridor which is jointly prepared by Indian and Japanese think tanks.
- Asia Africa Growth Corridor:-The corridor will focus on Developing Cooperation Projects, Quality Infrastructure and Institutional Connectivity, skill enhancement, and People-to-People Partnership.
What India Must Do or way forward:-
- It is important for India to make African foreign policy in cognizant of China’s increasing footprint in the region.
- A thorough impact assessment needs to be conducted on existing capacity building projects.
- A detailed survey of participants who have returned to their home countries in Africa.
- The Government of India should incentivize Indian industries to tap into African agribusiness value chains and connect Indian technology firms and startups with partners in Africa.
- We know that African agritech sector as the startup ecosystem in the continent enjoyed a 110% growth between 2016 and 2018 so further this opportunity must be trapped.
- There are also proposals to create a jointly owned brand of Africa Kollam cashews such other areas must be scrutinised by the sub national governments in other sectors.