Paper: GS – II, Subject: International Relations, Topic: India Relations with Major Countries, Issue: Strengthening India-Africa Relations.
Context:
India and Africa stand at a critical juncture in their partnership. A decade after the landmark 2015 India-Africa Forum Summit, both regions have undergone major economic and geopolitical shifts.
Key Highlights:
Opportunities and Challenges:
- Demographic and Economic Potential: By 2050, Africa will house a quarter of the world’s population, while India will be the third-largest economy. This presents a significant growth corridor for commerce, technology, and development.
- Investment and Trade: India is among Africa’s top five investors, with cumulative investments of $75 billion. Trade has surpassed $100 billion. However, India lags behind China in trade volume.
- Shifting Engagement Model: The focus is shifting towards collaborative building, from infrastructure projects to vaccine production and digital tools.
- Security Partnership: The Africa-India Key Maritime Engagement (AIKEYME) signifies a growing security partnership rooted in shared oceanic geography.
- Financial Support: India’s Exim Bank extended a $40 million credit line to the ECOWAS Bank for Investment and Development (EBID), signaling interest in African-led development.
- Education and Knowledge Partnerships: The new IIT Madras campus in Zanzibar and programs like the Pan-African e-Network and ITEC contribute to knowledge exchange and capacity building.
- Global Representation: India supports African representation in global institutions and contributes to UN peacekeeping missions in Africa.
- Value Chain Advancement: India needs to move up the value chain by co-investing in future-facing sectors like green hydrogen, electric mobility, and digital infrastructure.
- African Continental Free Trade Area (AfCFTA): The AfCFTA is creating a single continental market, which India’s UPI and digital stack can complement.
- Innovation Ecosystems: African innovation ecosystems are growing in cities like Kigali, Nairobi, and Lagos, creating competition for India.
India and Africa are moving beyond exchanging goods to exchanging confidence, capacity, and ideas, and connecting futures. A decade after the last IAFS, it is time to write the next chapter by joining hands and building together.
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