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Africa emerging market for Indian exports to expand rapidly: Commerce secretary
He said New Delhi is considering doubling exports to African countries to $200 billion by 2030 by focusing on potential areas such as automobiles, agro-products, pharmaceuticals, and logistics
New Delhi: Africa is an emerging market for Indian exports to expand rapidly, commerce secretary Sunil Barthwal said on Thursday, adding that New Delhi is considering doubling exports to African countries to $200 billion by 2030 by focusing on potential areas such as automobiles, agro-products, pharmaceuticals, and logistics.
India can help African countries in ensuring their food security, he said. Indian agriculture and agro-tech firms could play an instrumental role in expanding Africa’s food production capacity through various measures, such as the sharing of seed technology and the setting up of incubation centres, he said.
India’s bilateral merchandise trade with African countries stood at $100 billion in 2022 and is expanding, he said. Barthwal was speaking at the valedictory session of the 19th India-Africa Business Conclave, organised by the Confederation of Indian Industry (CII) in New Delhi. The session was attended by vice presidents of five African nations: The Republic of Burundi, Republic of The Gambia, Republic of Liberia, Republic of Mauritius, and Republic of Zimbabwe.
Speaking at the session, ministry of external affairs (MEA) secretary, economic relations, Dammu Ravi urged Indian investors to establish deep footprints in Africa’s manufacturing zones and proposed them to consider expanding special economic zones (SEZs) in Africa.
Barthwal said the African Continental Free Trade Area (AfCFTA) has identified four potential areas of trade: automobiles; agriculture and agro-processing; pharmaceuticals; and transportation and logistics. “We firmly believe that these sectors have huge potential for collaboration in terms of investment, trade, technology, and capacity building between Africa and India,” he said.
While processed foods and seed technology have better prospects in the area of agricultural trade, pharmaceuticals is another major area with huge potential for Indian exports, he said adding India’s pharmaceutical exports to Africa stood at $3.8 billion in 2023, which can grow multifold as Indian firms can provide affordable medicines and healthcare to the African people.
Africa can also supply critical minerals to Indian industries, a fundamental input for India’s green energy transition. Critical minerals, like cobalt, copper, lithium, nickel, and rare earths, play a crucial role in the manufacturing of EVs and other clean energy products such as wind turbines.
Speaking on the occasion, Republic of Gambia vice president Muhammad B.S. Jallow said that the conclave facilitated discussions with Indian companies in key areas such as energy, infrastructure development, affordable housing, and healthcare, which in turn will further strengthen the India-Africa partnership.
Republic of Mauritius vice president Marie Cyril Eddy Boissézon described India and Africa as natural allies with shared civilisational values. He called for sustained and focused efforts to derive concrete benefits from India-Africa cooperation in areas such as digitalization, healthcare, space development, pharmaceuticals, infrastructure, power, and capacity building.
Speaking about India-Africa ties at the same forum on Wednesday, Union commerce minister Piyush Goyal said, “We are very aligned in our desires, ambitions, and aspirations. We are looking for a better quality of life for our people, greater investments, and economic growth and prosperity. While our trade and investments have been strong, there is so much more that we can achieve together.”
Goyal minister recalled Prime Minister Narendra Modi’s vision of a compact between countries of the Global South, which opens new avenues for mutual interest and expanded cooperation, and mentioned India’s assistance to Africa through 196 lines of credit amounting to over $12 billion, benefiting 42 countries.
Highlighting the collaborative efforts under the leadership of PM Modi to bring the African Union (AU) into the G20 as a full member, Goyal noted that India’s efforts to raise African issues in various global forums mark the beginning of a strengthened partnership between India and Africa.
