India Africa Trade Relations

Following India’s economic liberalization from 1991 onwards, Africa has emerged and is likely to remain crucial for natural resources and developing markets. India’s growing synergy with Africa is evident from the recent trends in trade. The total trade was than $1 billion in 1990-1991 and has grown to $71 billion in 2014-15. India is now Africa’s fourth largest trading partner, though raw materials make up over 80% of Africa’s exports to India. While petroleum crude accounted for a significant 67 percent of India’s total imports from Africa during 2014-15, other major items imported from Africa include gold, inorganic chemicals, metal ores and metal scrap and cashew nuts. In the case of India’s imports South Africa is the second largest source of import followed by Angola, Egypt, Ghana and Tanzania.

South Africa, remains the leading destination for India’s exports to Africa in 2014-15. Other major export destinations include Kenya, Egypt, Nigeria, Tanzania, Mozambique and Mauritius. Important items of export include transport equipment, machinery and instruments, pharmaceuticals, non-basmati rice, cotton yarn fabrics, semi-finished iron and steel. Further, India’s private sector has played a pivotal role in the expansion of trade relations.

Indian investments in Africa have multiplied and are currently pegged at around $ 35 billion dollars. They are spread across sectors such as telecommunications, information technology, hydrocarbons and agriculture.