African Continental Free Trade Area Offering Tremendous Prospects To India

The "Building a Resilient Africa: Enhanced Role of India" research by the India Exim Bank reveals significant trade complementarity between India and Africa. The amount of trade between India and Africa as a whole was $82.5 billion in 2021, which was a record high for both areas.

The study calculates the bilateral export potential of India and Africa at $48 billion using the ITC's export potential approach. The report also looked at how India's development cooperation with Africa has changed over time, highlighting the necessity for India to step up efforts to strengthen this developmental partnership, particularly in light of the recent changes to the global architecture. Contracts obtained by Indian project exporters in projects awarded by MDBs like the AfDB and the World Bank have also been analysed in order to understand the geographical and sectoral distribution of India's project exports to Africa.

The study also makes recommendations for ways to strengthen India's contribution to creating an Africa that is resilient in the wake of the pandemic and help it resume its earlier high growth trajectory and exports through increased cooperation in promising industries like agriculture, healthcare, and renewable energy, among others. The paper suggests looking into other infrastructure financing methods and closing the trade finance gap.

The study was announced recently during the 17th CII-EXIM Bank Conclave on India-Africa Growth Partnership, in the presence of Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Government of India; Marie Cyril Eddy Boissezon, GOSK, Vice President, Republic of Mauritius; Badara A. Joof, Vice-President, Republic of The Gambia; Dr. James Wani Igg
Speaking to the attendees during the Conclave's opening session, Goyal emphasised that India views Africa as a partner in progress.

The connection between India and Africa is best characterised by four pillars: people, business, trade, and government. He has emphasised that the relationship between Africa and India will be crucial in the future and help the developing countries escape food insecurity and achieve prosperity.
 

In her speech, Bangari, the managing director of the India Exim Bank, stressed the importance of closing trade finance gaps in order to expand both India and Africa's share of global export participation. She emphasised the expanded role of development finance institutions (DFIs) and multilateral development banks (MDBs) in developing strategies to close the trade financing gap.