Staging A Comeback, Re-Energising India’s Africa Policy

Context: Regarding Africa policy, India needs to make new commitments, developing and deepening links in health, space and digital technologies.

Africa’s place in India’s foreign policy

• Forward-looking strategy:
  • To deepen relations with African countries, enriched by political will invested in expanding multi-faceted engagement.
  • During the pandemic India took new initiatives to assist Africa through prompt despatch of medicines and later, vaccines.
• Strategic role: In peacekeeping in Africa, in lending support to African counter-terrorism operations, contributing to African institutions through training and capacity-enhancing assistance and economic development aids.
• Composition of India-Africa trade:
  • India’s top five markets in Africa are South Africa, Nigeria, Egypt, Kenya and Togo.
  • India’s top three exports to Africa: Mineral fuels and oils (processed petroleum products), pharmaceutical products and vehicles.
  • Top five imports are from South Africa, Nigeria, Egypt, Angola and Guinea.
  • Mineral fuels and oils (essentially crude oil) and pearls, precious or semi-precious stones, are the top two imports accounting for over 77% of our imports from Africa.

Challenges to India’s Africa policy

• Declining trade: According to the Confederation of Indian Industry, in 2020-21, India’s exports to and imports from Africa stood at $27.7 billion and $28.2 billion, a reduction of 4.4% and 25%.
  • Bilateral trade, valued at $55.9 billion in 2020-21 fell by $10.8 billion compared to 2019-20, and $15.5 billion compared to the peak year of 2014-15.
  • Composition of India-Africa trade has not changed much over the last two decades.
• Declining India’s investments in Africa: From $3.2 billion in 2019-20 to $2.9 billion in 2020-21.
  • Total investments over 25 years, from April 1996 to March 2021, are now just $70.7 billion, which is about one-third of China’s investment in Africa.
• Setback to India’s ‘vax diplomacy’: India failed to match China in the outflow of vaccines in the wake of debilitating second wave of COVID-19.
• Shifting priorities: In the wake of geopolitical tensions in Asia and the imperative to consolidate its position in the Indo-Pacific region, India has been compelled to concentrate on its ties with the United Kingdom, EU, and the Quad powers, particularly the U.S.

Recent shift in outlook towards Africa:

• In pandemic management: Africa is ill-equipped - A recent WHO survey revealed that 41 African countries had fewer than 2,000 working ventilators among them, and flows of assistance and investment to Africa have decreased.
• The third scramble – Sharpening international competition in Africa: Reported by recent Gateway House study, Engagement of External Powers in Africa – Takeaways for India.
  • A dozen nations from Americas, Europe and Asia have striven to assist Africa in resolving its political and social challenges and, in turn, benefit from Africa’s markets and resources.

Way forward: For mutual benefit, Africa and India should remain optimally engaged

• Revive India-Africa Forum Summit: Third summit was held in 2015, the fourth summit, pending since last year, should be held as soon as possible, even if in a virtual format.
• New commitments: Fresh financial resources for grants and concessional loans to Africa must be allocated, as previous allocations stand almost fully exhausted.
• Prioritise strategic economic relations: Developing and deepening collaborations in health, space and digital technologies.
• Increase cooperation between Indian and its allies: To counter China challenge in Africa. E.g. Quad plan for Africa shall be announced.