Doubling India-Africa trade by 2030, more economic integration in focus: Govt

Trade between India and Africa can double by 2030

India will focus on doubling India-Africa trade by 2030 while also laying stress on more  economic integration, government representatives said at the India Africa Business Conclave organised by Confederation of Indian Industry (CII) in New Delhi on August 22.

“The sectors identified by African Continental Free Trade Area area, namely, automobiles, agriculture, pharmaceuticals and logistics, have huge potential for collaboration in terms of trade, investment, technology empowerment and capacity building between Africa and India,” said Sunil Barthwal, commerce secretary.

Barthwal noted that given the current growth and opportunity, the countries were well in line to double trade between the two regions to around $200 billion by 2030.

India-Africa trade had reached its highest level ever of around $100 billion in 2022-23, but dipped in the previous fiscal.

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“Trade is growing, but this number game is misleading. The binary relationship needs to be seen from a larger context. India-Africa economic integration is vital,” said Dammu Ravi, Secretary (economic relations), Ministry of External Affairs.

Ravi noted that time has come to set up Indian owned economic zones in Africa to become more invested in development in the region.

“We have to see that we have more of Indian assembly plants and zones with Africa,” he pointed out.

On the other hand, Barthwal called for more collaboration in the field of agriculture.

“Despite facing its own food security challenges, India has prioritised food security for African nations,” the commerce secretary noted.

He also highlighted that India can share its experience in infrastructure development leveraging on the strengths of PM Gati Shakti masterplan.

Barthwal called for greater participation on WTO issues as well.

“India and Africa are believed to emerge as twin growth centres, let us leverage our combined strengths,” Barthwal noted.

India needs to look at trade from a deeper context of collaboration on global value chains, said Ravi, highlighting that Agenda 2063 should set broader context of partnership between the regions in days to come.

Agenda 2063 is blueprint to achieve development of Africa over a 50-year period.