India’s strategic focus on West Africa

Context: Last month, on his way to Brazil to participate in the G-20 Summit,
Prime Minister Narendra Modi made a strategic halt in Nigeria. During his first
two terms, Mr. Modi travelled to 10 African countries, including Uganda, where
he delivered a historic speech outlining India’s vision of Africa. However, his
visit to Nigeria is significant as it marks the first African visit of the
Prime Minister in his third term. This visit is also the first by an Indian
Prime Minister to Nigeria in 17 years. The Indian Prime Minister was conferred
Nigeria’s second-highest national award, the Grand Commander of the Order of
the Niger. He became the only second foreign dignitary to receive the
distinction since 1969, after Queen Elizabeth II, underlining India’s rising
global stature and the trust and recognition Mr. Modi has gained for his
commitment to the Global South.

India-Africa relations

·       Economic
and Development Cooperation: Market Potential - Africa presents an
untapped market for Indian businesses, especially in textiles, pharmaceuticals,
automobiles, and light machinery.

Trade Growth - From 2011 to
2022, India’s total goods trade with Africa surged from USD 68.54 billion to
USD 90.52 billion, reflecting a robust economic partnership. In 2022, India
recorded a positive trade balance with Africa for the first time.

·       Health
and Humanitarian Collaboration: Affordable Medicines -
Indian pharmaceutical firms are key providers of generic medicines in Africa,
improving access to essential healthcare and supporting public health systems.

Medical
Assistance - India has dispatched medical teams to assist in combating diseases like
HIV/AIDS, malaria, and Ebola, contributing to health infrastructure and
emergency response capabilities.

·       Defence
and Security Engagement: Strategic Partnerships - India has signed
MoUs with African nations along the Indian Ocean Rim, highlighting a commitment
to enhance defence collaboration and maritime security.

Joint Exercises
-
The first Trilateral Maritime Exercise with Tanzania and Mozambique in 2022
reflects a proactive approach to strengthening maritime cooperation and
addressing security challenges.

·       Technology
and Digital Initiatives: Pan African e-Network Project - Launched in
2009, this project facilitates satellite connectivity for telemedicine and
tele-education, significantly impacting access to services in remote areas.

e-VidyaBharti
and e-ArogyaBharti - These programs provide free tele-education and
continuing medical education, enhancing learning and professional development
for healthcare workers in Africa.

·       Significance
of Africa for India: Economic Potential - Projected GDP growth of
4% in 2023 and a bilateral trade reaching USD 98 billion in 2022-23, Africa is
an attractive market for Indian businesses. The African Continental Free Trade
Area (AfCFTA) creates a unified market of 1.3 billion people, enhancing export
and investment prospects.

Geopolitical
Importance - Africa’s 54 nations form a significant bloc in international forums,
crucial for India’s aspirations for greater global representation. India’s
support for African representation in the UN Security Council and the African
Union’s permanent membership in the G20 during India’s 2023 presidency
highlight this strategic partnership.

·       Significance
of India for Africa: AfCFTA Opportunities - The African
Continental Free Trade Area (AfCFTA) is poised to create the largest free trade
zone, providing India with opportunities to enhance bilateral trade and lift
millions out of poverty.

Shared
Development Goals - Both regions face similar developmental challenges,
facilitating a mutual understanding of issues like UNSC reform, climate change,
and trade negotiations.

Security
Cooperation - India and Africa can strengthen ties in addressing security challenges,
including terrorism and regional stability, enhancing peace and security across
the continent.

·       Concern
issue between Africa India cooperation: Lagging Investments -
Indian investments in Africa are significantly lower than those from China and
Western countries.

Quality Concerns
-
Some African markets perceive Indian products as inferior compared to Western
or Chinese alternatives.

Regional
Imbalance - India’s engagement has been criticized for focusing predominantly on
East and Southern Africa, neglecting West Africa.

Tariff and
Non-Tariff Barriers - African countries often impose high tariffs and
regulatory hurdles that can impede Indian exports, making market access
challenging.

·       Way
forward: Bilateral Trade Agreements - Negotiate and implement
comprehensive trade agreements that reduce tariffs and non-tariff barriers,
facilitating easier access to markets.

Risk Mitigation
Strategies - Develop mechanisms to address risk perceptions among Indian investors,
such as insurance schemes or government-backed guarantees.

Diversified
Engagement - Expand focus beyond East and Southern Africa to include West and Central
Africa, ensuring a more balanced approach.

Scholarships and
Exchanges - Increase scholarships and exchange programs for African students to
study in India, promoting people-to-people connections.

Community
Engagement - Actively involve local communities in project planning and execution to
address their concerns and needs.

Start-up
Collaboration - Encourage partnerships between Indian and African start-ups to foster
innovation and share best practices.