Trade between India and Africa increased by 9.3% between fiscal year 2021/2022 and 2022/2023, reaching $98 billion, according to India’s external affairs minister, as more than 30 African countries have benefited from India’s duty-free tariff preference (DFTP) scheme for least-developed countries.
Speaking at the Confederation of Indian Industry (CII) and Exim Bank of India conclave on India-Africa partnership, External Affairs Minister, Subrahmanyam Jaishankar, also expressed “confidence that trade volume will exceed $100 billion in 2023/2024 financial year.” The head of Indian diplomacy also said that New Delhi has already granted more than $12.37 billion in concessional loans to African countries. Pointing out that his country is one of the top five investors in Africa, he noted that Indian companies have completed 197 projects on the continent, 65 are under execution and 81 are in the pre-execution stage.
Drinking water, irrigation, rural solar electrification plants and rural sugar and textile factories are part of India’s development outreach to the continent. The minister also pointed to India’s medical support to numerous African nations during the pandemic as a case of India’s continued outreach to the country. He also spoke of how Indian and African nations worked together during the pandemic to go to the World Trade Organisation (WTO) for vaccine access. “For India, the rise of Africa is key to global rebalancing.” Jaishankar said. Looking forward, he expressed the hope that the African Continental Free Trade Area Agreement (AfCFTA), which was signed in 2021, would provide a solid platform to Indian companies looking to operate in the continent.