INDIAAFRICA : SOUTHSOUTH

TRADE AND INVESTMENT FOR DEVELOPMENT

Group Number 10:

Abhinav Singh Rawat
Chittransh Verma
Prachi Aggarwal
Prateek Singh
Rishabh Jain
Sahil Sablok
Shivani Kapur

(14IB305)
(14IB321)
(14IB345)
(14IB347)
(14IB352)
(14IB354)
(14IB361)

Submitted To:
Dr. Anuj Sharma

TABLE OF CONTENTS:

Introduction
Objectives
India-Africas Burgeoning
Trade & Investment Relationship
India-Egypt Economic &
Commercial Engagement
India-Nigeria Economic &
Commercial Engagement
India-Morocco Economic &
Commercial Engagement
India-Ghana Economic &
Commercial Engagement
Factors Hindering India's Trade &
Investment Relationship with Africa
Indias Development Assistance to Africa
Indian AssistanceAfrican &
Indian Business Views
Key Findings
Recommendations
References

TABLES AND FIGURES:

03
03
04
08
11
13
15
17
18
20
20
22
25

Table 1: Basic indicators for Africa and

India in 2014
Table 2: Position of countries in Africa
continent with respect to trade with India
Table 3: Indias ranking in the exports
imports of Egypt
Table 4: India Ghana bilateral trade
Figure 1: Indian-Africa trade growth rate
Figure 2: Openness for Business
Figure 3: India's trade relationship with
Africa, by region in 2013
Figure 4: Difficulties faced by exports of
goods from India to Africa
Figure 5: Difficulties faced by Indian
investments in Africa
Figure 6: India's comparative advantage
as an assistance provider
Figure 7: Type of support that would be
most effective in helping business overcome
the barriers to India-Africa trade

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

05
06
09
16
06
07
08
16
18
19
21

INTRODUCTION:
Trade between India and Africa has a long and distinguished history. It goes back thousands of
years to the days when Indian traders, using the seasonal monsoon winds. The India-Africa
relationship is distinctive and owes its origins to a common past that they share -- a past that
witnessed a struggle against colonialism, poverty and illiteracy. India and the African nations have
been building strong and mutually beneficial associations since long. India established its trade
relations with the African countries as long back as in the 16th century. As emerging economies,
India and Africa have a lot in common- rich natural resources, similar demography and large
domestic markets. This provides a natural synergy for building partnerships. In recent years, Indias
economic partnership with the African countries has been lively, extending beyond trade and
investment to technology transfers, knowledge sharing, and skills development. India is Africas
fourth-largest trading partner behind the EU, China and the US, and a significant investor across
the continent.
The global economy is increasingly being driven by the growth and dynamism of the "South". The
financial crisis and the subsequent recovery led by many countries in the 'South' has served to
further underline the seismic shift reshaping the global economic order. The traditional North-South
trade equation is being increasingly complemented by a dynamic trade and investment relationship
between developing countries, and this is becoming a major source of economic growth and
employment generation. India's and Africa's rapidly expanding trade and investment relationship
is one example of this dynamic change. And countries like Nigeria, Morocco, Ghana, and Egypt
contribute to this development in a major way.
Bilateral India-Africa trade has grown by nearly 32% annually between 2005 and 2011, including
through the economic crisis. India-Africa trade is projected to reach US$ 90 billion by 2015. Even
more importantly, Indian private investment in Africa has surged, with major investments having
taken place in the telecommunications, IT, energy, and automobiles sectors.
India and Africa's partnership has entered a new era. Close political relationships are being
invigorated by a flourishing trade and investment relationship. This new trade and investment
relationship could be crucial in the struggle to lift millions out of poverty.
Indian private sector organizations, under the stewardship of the Confederation of Indian Industry
(CII), have been active in Africa for the last several years. They have done so through mobilizing
government, institutional as well as private initiatives, forging stronger public-private partnerships
(PPPs) and joint venture initiatives between African and Indian firms.1Particularly, the annual CIIEXIM Bank India-Africa Project Partnership Conclaves (hereinafter, the India-Africa Conclaves)
have developed into a platform for businesses and government enterprises to find a credible access
point for appropriate technologies and partners.

OBJECTIVES:

To analyze India Africa trade relations to countries Nigeria, Morocco, Ghana and Egypt.
To identify the barriers to bilateral trade between the two blocs and to identify measures that would
help integration into each other's value chains.
To examine how IndiaAfrica business and investment ties could be further strengthened.
To identify the key aspects of India Africa trade relations to countries.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

To focus on various ways of interaction of trade for mutual development.

To analyze the signs of enthusiasm to nurture a strong relationship.

INDIA-AFRICAS BURGEONING TRADE AND INVESTMENT

RELATIONSHIP
OVERVIEW:
World Bank estimates put the percentage of the population in India living on less than US$1.25 per
day at 32.7% in 2011. In Africa this percentage is estimated at around 47.5%. Together, nearly 900
million people in India and Africa live in extreme poverty almost 70% of the worldwide total.
Almost 20% more populous, India occupies just over 10% of the same land area as the 54 sovereign
nations of the African continent. 34 of the 49 LDCs are situated in Africa. Marked disparities exist
both within and between Africa's nation states and India's federal states.
Fortunately, this picture is changing, and rapidly. Strong economic growth over the past decade has
made significant inroads into poverty. In the past decade, India and Africa posted average GDP
growth rates of 7.4% and 5.7%, respectively. Nearly 10% of Africa's population escaped absolute
poverty.5 India recorded even faster poverty reduction, with nearly 17% its population exiting
extreme poverty between 1995 and 2010.
Sustained economic growth should make further inroads into poverty. Sub-Saharan Africa is
projected to grow at 5.6% and India at 6.3% in the next five years.7The International Monetary
Fund (IMF) forecasts that six of the ten highest growing economies between 2012 and 2017 will
be African economies. Ensuring that economic growth is broad-based and inclusive will further
help this process.
India and the African continent are also home to growing middle classes. Rapid urbanization, rising
disposable income and connectivity are recasting economic systems.
Trade growth has outstripped economic growth as both India and Africa leverage domestic growth
from integration into the global economy with South-South trade an ever more visible element of
the growth equation. The World Bank has reported that
capita income grew more than three
times faster for developing countries that lowered trade barriers (5.0% per year) than other
developing countries (1.4% per year)
India and many African countries have lowered trade barriers, unilaterally as well as multilaterally,
throughout the last two decades with a positive impetus to economic growth.
Africa's trade surplus with India is rising rapidly, albeit driven in large part by a narrow range of
suppliers and commodities. The top six African exporters, viz., Nigeria, South Africa, Angola,
Egypt, Algeria and Morocco account for 89% of total African exports by value to India thanks
mainly to exports of oil and gas, ores and gold. In 2011, the top six had a trade surplus of over US$
24.5 billion. If current rates of growth are sustained, Africa's trade surplus could reach US$ 67
billion by 2015.
The regional picture of trade has changed considerably over the past decade. In 2001 Southern
Africa accounted for nearly 60% of exports to India while West Africa accounted for just above
16%. Fast forward to 2011, and West Africa is the largest supplier with a share of 40%, while the
share of Southern Africa was 24%. A reinvigorated historical trading relationship with East Africa
means that it is again the largest regional market for Indian goods with a share of 34% in 2011 although its exports to India are only 2% value of Africa's exports.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

Table 1: Basic indicators for Africa and India in 2014

Source: World bank development Indicators

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

Figure 1: Indian-Africa trade growth rate

Table 2: Position of countries in Africa continent with respect to trade with India

Rank in
India's
Total
Export to
Trade
with
African
Region
(Year
2008)
1

Importers

Total
Trade
value in
2007 (in
USD Bn)

%age
Growth
Over
Previous
Year

Total
Trade
value in
2008 (in
USD Bn)

%age
Growth
Over
Previous
Year

%age
Share of
Country
in India's
Total
Trade
Year
2008

Nigeria

8.01

21.09

11.49

43.49

2.31

Egypt

3.07

42.75

3.84

25.23

0.77

Morocco

0.69

1.86

1.25

80.14

0.25

13

Ghana

0.9

143.94

0.75

-16.69

0.15

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

Figure 2: Openness for Business

India Africa Trade Ministers Dialogue

The India-Africa Trade Ministers Dialogue is an annual event, of which the first meeting was held
in Addis Ababa in May, 2011, on the occasion of the 3nd Africa-India Forum Summit held at Head
of State level and the second meeting was held in March, 2013. The ministerial level dialogue
discusses trade related bilateral issues and assesses the progress of development co-operation set
forward in Africa- India Forum Summits.
During the 2013dialogue, the bilateral trade target for 2015 was revised to US$ 90 billion from US$
70billion set during the first dialogue. The Ministers agreed on the need to strengthen the trade
relationship between the two sides through, inter alia, the building of trade-related capacity and the
conclusion of trade cooperation agreements between India and African Regional Economic
Communities (RECs). On the basis of current projections, Ministers may be in the welcome position
of having to again revise upwards this target for bilateral trade.

Another measure of the India-Africa economic story is investments that have seen an upward trend
in recent years. Particularly, Indian investments in Africa have grown substantially across the
continent and sectors. Today, Indian multinational enterprises (MNEs) presence in Africa can be
felt in sectors ranging from energy to mining, and telecommunications to IT-enabled services.
Although data on Indian investments to Africa remain sketchy, some sources estimate the stock of
investment at over US$ 32 billion. African MNEs, particularly from South Africa, have also
ventured into India over the past decade with presence in infrastructure development, breweries,
financial and insurance services.
There are some distinctive features of Indian operations in Africa. Indian companies investing in
Africa vary in size and are typically either privately owned or under public private ownership. Most
Indian firms in Africa also acquire established businesses, or Brownfield investments; are less
vertically integrated; prefer to procure supplies locally or from international markets engage in far
more sales to private African entities; and encourage the local integration of their workers.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

Figure 3: India's trade relationship with Africa, by region in 2013

India and Africa are two energetic regions whose dynamism is feeding into each other's growth.
However, as this report highlights, there is significant scope to extend further the already dynamic
bilateral commercial relationship. Particular scope exists to broaden the goods and services traded,
and also the number of partners involved.

INDIA-EGYPT ECONOMIC AND COMMERCIAL ENGAGEMENT

BILATERAL TRADE
Indo-Egypt economic and commercial engagement has not only withstood the testing times of
Egypts post-revolutionary years but also progressed distinctly defying all kinds of apprehensions
and doubts. Even during the difficult transition phase of 2012, India earned the distinction of being
the eighth largest global trade partner of Egypt
Significantly, India is the second largest destination of Egyptian Exports and twelfth largest source
for Egyptian imports. Over the past years, India continues to remain a significant global trade
partner of Egypt.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

Table 3: Indias ranking in the exports imports of Egypt

FY (July-June)

India Rank in Egypt's India Rank in Egypt's Import

Export Destination
Source

2011-12
2010-11
2009-10
2008-09

2
3
5
5

11
12
11
12

The total bilateral trade increased by more than 37 per cent to reach US$ 4.63 billion during the
financial year 2011-12 from US$ 3.18 recorded in the previous year. In 2012 (Jan-Oct), the bilateral
trade stood at US$ 3.54 billion. During the FY 2011-12, Indias export to Egypt grew by 37 per
cent to reach US$ 2.06 billion up from US$ 1.50 billion in FY 2010-11. The major five exports
item includes frozen meat, Milled Rice, Cotton yarn, Synthetic Filament Yarn and Light Oils.
During the same period, Indian imports from Egypt increased by more than 37 per cent to reach
US$ 2.30 billion. Chief import items include Petroleum, LNG, Calcium Phosphate, Cotton and
partially refined oil. The bilateral trade balance is adverse to India and stood at US$ 2.38 billion,
largely due to import of petroleum and petroleum products which comprises about 85 per cent of
our imports basket. Indian Investments in Egypt. The total Indian Investment in Egypt is around
US$ 2.5 billion which covers more than 50 projects. Indian companies continued to invest in the
Egyptian economy during the year and no Indian company left the country during the year.

PAN AFRICAN E-NETWORK

During the year, the hardware installation for the second phase of the Pan African e-Network
Project to relay tele-education and tele-medicine to other African nations was completed. The
second phase is expected to be launched in the near future. The first phase has been operational
since July 2009 at Alexandria University.

VOCATIONAL TRAINING CENTERS

During the year, efforts were made to upgrade a textile vocational training center at Shoubra El
Kheima Mechanical Maintenance Center under the Productivity and Vocational Training
Development Authority. National Small Industries Corporation, which is the implementing agency
in India is expected to start work in the first half of 2013. The project would be implemented under
the India Africa Forum Summit and would be completed in 12 months after confirmation of
readiness of infrastructure by Egyptian side. The project cost is approximately Rs. 5 crore.

VISITS OF TRADE DELEGATIONS/ORGANISATION OF BSMS

A number of Trade Delegations and businessmen visited Egypt to participate in Seminars,
Conferences and Buyer-Seller Meets during the year. The prominent visits include:

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

 Under the umbrella of ASSOCHAM, twenty five Indian companies participated in the
International Fair 2012 in Cairo from 18-30 March.
SKG Sangha, a leading Indian Non-governmental organization (NGO) in May 2012 signed an
MOU in the field of renewable energy in partnership with UNDP and the Egyptian Ministry of
State for Environmental Affairs for setting up 100 biogas plants in Asuit and Fayoum
governorates of Egypt.
Maharashtra Knowledge Commission Ltd (MKCL India) set up a joint venture company,
MKCL Arabia Egypt to provide e-learning, e-governance solutions to both Egyptian
educational institutions as well as governmental organizations.
A ten-member CII business delegation led visited Cairo from 2nd to 6th November, 2012. On
3rd November, at the initiative of Indian Embassy, India Business Forum is launched by the
CII in the presence of major Indian investors in Egypt.

PARTICIPATIONS IN SEMINARS AND CONFERENCES IN INDIA

A number of Egyptian Officials and Ministers participated in Seminars and Conferences in India
during the year. Minister of Scientific Research, Prof. Nadia Iskandar Zakhary, visited India on
March 1-2 and attended the India-Africa Conference of the Science & Technology Ministers.
Further, a four-member delegation from the Al Nahda (Renaissance) project of Egypt visited India
from November 4-9. The Nahda team members visited CII, NASSCOM, NSIC, Planning
Commission, Aadhar Project and several industrial and technological parks with a view to learn
from the Indian experience and met senior functionaries both in government and private sectors in
New Delhi, Chennai, Bangalore.

MAJOR BILATERAL VISITS DURING 2012 & FIRST HALF OF 2013

An 11-member delegation led by Minister of Works of Nigeria visited India from February 27
to March 2 2012 to study the business model of National Highways Authority of India.
The S&T Minister led a 4-member delegation for the India-Africa S&T Ministers Conference
on March 1-2, 2012.
Minister of Labour & Productivity led a 3-member delegation for IBSA International
Workshop on March 1-3, 2012.
Former Nigerian President Olusegun Obasanjo visited India in March 2012 mainly for
encouraging economic ties and was received by Honble PM on March 12 2012 and CITM on
March 13 2012.
A delegation led by MOS of Defence of Nigeria Honble Mrs. Erelu Olusola Obada visited
Delhi on a 4-day official visit in April 2012 to participate in the DefExpo India 2012.
Nigerian FM Dr. Ngozi Okonjo-Iweala paid an unscheduled visit to India on March 28 2012
to lobby for her candidature for the President of World Bank with the leaders of BRICS.
A 6-member Nigerian delegation led by Honble Minister of S&T visited India to participate
at 3rd Bengaluru Space Expo on September 12-15, 2012.
Nigerian Minister of Agriculture & Natural Resources visited India to attend 40th Year
Celebration of ICRISAT at Hyderabad on Sept 24-26.
A delegation led by Governor of Borno visited India in September 2012. He met Honble
Minister for Renewable Energy, among others.
Prof.(Mrs) Ruqayyatu A. Rufai, Nigerian Education Minister led an 11-member delegation to
attend Ninth E-9 Ministerial Review Meeting in New Delhi from 8-10 November, 2012.
Permanent Secretary in the Ministry of Local Govt of Nigeria led a delegation to India on a
study tour and said on May 9, 2012 measures taken by India to eradicate poverty and also
steps to bring in economic reforms are worth emulating.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

10

H.E. Ms. Ama Peppele, Minister of Land & Housing went to India in last week of October to
take part in Commonwealth Conference.
Governor of Benue State visited India for 5 days starting March 14, 2013.
Governor of Lagos attended India-Africa Conclave in New Delhi in March 2013.
Governor of Kano visited India in February 2013 to attend the Garment Fair.
Minister of Communication Technology visited New Delhi / Kolkata from March 19 -21, 2013
to attend IndiaSoft-2013. She also had a meeting with her Indian counterpart.

INDIA-NIGERIA ECONOMIC AND COMMERCIAL

ENGAGEMENT
(a) BILATERAL ECONOMIC TRADE AND INVESTMENT RELATIONS
Economic, trade and investment relations between Nigeria and India have improved considerably
over the years. While the relations between the two had historical and political underpinnings,
recent trends mark a dramatic move towards strong economic links. In other words, Nigeria and
India have recognized the need to make trade and economic opportunities the central focus and
hence take full advantage of the existing potentials in both countries and as emerging global powers
and reliable partners.
Nigeria continues to maintain the status of being the second largest trading partner of India in
Africa. It is also the largest market in Africa for Indias exports. According to the High
Commission of India in Nigeria, bilateral trade turn over in 2010 2011 amounted to over US$13
billion, a growth of 57% and it is expected that the figure for 2011 2012, would be over US$17
billion with crude oil accounting for the bulk of the trading. India exports to Nigeria consist of
pepper, wood products, textiles, plastics chemicals, machinery, transport equipment, steel, power
transmission equipment, drugs and pharmaceuticals.
Nigeria on her part exports Cashew nuts, woods, cotton, pearls, rubber, gum Arabic and oil to India.
Of particular note is that, Nigeria is main source of crude oil import for India. The latter views
Nigeria as an important partner in meeting its energy requirement. India imports about 12% of her
crude oil requirements from Nigeria. As a result of the huge import of crude oil from Nigeria, the
balance of trade remains in Nigerias favour. It is also reported that about a hundred Indian
companies are operating in Nigeria. These include Bharti Airtel, a major telecommunication
provider in Nigeria.
Bharti Airtel invested US$600 million in Nigeria after taking over telecom operating license of
Zain. Also in the recent privatization process of the unbundled companies of the Power Holding of
Nigeria (PHCN), Tata Energy bided as part of two consortia for Eko Distribution Company, Ikeja
Distribution Company and Benin Distribution Company with expected investment inflow of
US$900 million. Two Indian IT companies NIIT and Aptech have invested in IT education with
over 42 study centers across Nigeria where over 75,000 Nigerians have benefitted in computer
education. Primus Super-Specialist Hospital is the premier India health care provider to operate a
hospital in Nigeria with a view to easing the outflow of patients outside Nigeria in search of medical
treatment. Other major Indian companies are Bajaj Auto, Birla Group, Kirlosker, Mahindra, Astock
Leyland, New India Assurance, Bhushon Steel, DEC and Skipper Electronics etc. India has
partnered with NAFDAC in setting up Food Laboratory testing in Nigeria.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

11

Furthermore, a number of Indian companies are participating in Nigerias Upstream Sector of Oil
and Gas, for example, ONGC Mittal, Sterling and Essor won 6 oil blocks during the 2005 2007
Nigeria Oil block bids, which not only boosts existing trade and investment relations between the
two countries but to a large measure, strengthen the efforts of the two Governments to make
economies, trade and investment the central focus of their long- term relations.
Nigeria is home to a large population of Indian nationals. The High Commission of India in Nigeria
estimates that the Indian nationals in Nigeria are over 35,000. More important than the numbers is
the fact that the Indian Community is well entrenched in Nigeria and they are involved in several
local and community Projects and activities.
Many in the Indian Community are of 3rd to 4th generation descent, their grandparents or great
grandparents having arrived during the colonial period. Many Indian nationals are now naturalized
Nigerians and most of them are actively involved in general trading; the service sector;
manufacturing; construction and aviation/air services industries and enterprises.
In this regard, an Indian National established in 1923 a family business called K. Chellarams which
has become a major group of companies with investments in agriculture and commodities, retailing,
manufacturing, motor vehicles, etc. It may surprise you all to know that Olam International Group,
a Singaporean Company, has its origin in Nigeria having been established by K. Challarams.
Similarly, Nigerians living in India is estimated to be 15,000. In 2012, 40,000 Nigerians were issued
visa to India, out of which 80 % are medical tourist followed by students, officials and business
travelers. All these show the extent of the strong ties and bond that exist between Nigeria and India.

(b) GOVERNMENT AND POLITICAL RELATIONS.

At the Governmental level, there exists a viable Joint Commission known as Indo Nigeria Joint
Commission under which both sides signed an Economic Cooperation Agreements as a legal
framework regulating areas of economic cooperation. The Indo Nigeria joint commission was
established in 1977 with the objective of facilitating transfer of technology to Nigeria and enhance
technical training of Nigerians by India in the fields of engineering and industrial joint ventures.
About five (5) sessions of the joint commission has been held since its inception with the recent
one held in New Delhi in March, 2011. The 6thsession will hold in Abuja in the second quarter of
this year. While the joint commission has remained an important vehicle in fostering economic,
trade and investment between the two countries, concerted efforts are needed to ensure that follow
up actions agreed at these sessions are concluded.
Furthermore as a mark of growing and fruitful relation, Nigeria and India signed a Strategic
Partnership Agreement in 2007 during the official visit of the India Prime Minister, Dr Manmohan
Singh to Nigeria. The Abuja Declaration as the agreement is known bestows special privileges,
similar to most favoured Nations Status to bilateral relations between the two countries.
The following agreements were signed at the Abuja Declaration:
MoU between Foreign Service Institute and the Nigerian Foreign Service Academy
MoU between Indian Council for World Affairs (ICWA) and Nigerian Institute of International
Affairs
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

12

 Protocol for Foreign Office Consultations

MoU on Defence Cooperation
It was agreed that to enhance and broad base cooperation, the following agreements would be and
signed.
Double Taxation Avoidance Agreement
Bilateral Investment Promotion & Protection Agreement
Bilateral Inter Governmental Science & Technology Agreement
Bilateral Air Services Agreement (renewal of 1976 agreement)
Mutual Legal Assistance Treaty
Extradition Treaty
Trade Agreement
Agreement on Cooperation against trafficking of Drugs etc.
Cultural Exchange Programme 2008 2010
Nigeria and Indian play critical and influential roles in the international fora such as the UN,
Commonwealth and others on common issues such as development, security, tourism, drug and
human trafficking. In 1990, both countries collaborated on the adoption of the Bale convention
aimed at controlling export of dangerous industrial waste and its movement across borders. And as
mentioned earlier, both countries developed a deep bond through their united approach to the fight
against Apartheid in South Africa and white minority rule in Rhodesia (the present day Zimbabwe).
Their views and positions on these global issues carry weight in part because India is endowed with
a large population second only to China, achieved success in the area of technology (Information
and Communication Technology including space) and an emerging developing economy. It is a
regional power. On its part, Nigeria is both a regional as well as a continental power. Nigeria has
the largest population in Africa and its people are industrious, Vibrant and highly educated and the
largest market in the continent.
The country is at the forefront in the efforts of monitoring peace and security in the West African
region and Africa. It has a growing economy which has become the preferred destination for direct
foreign investment.

INDIA-MOROCCO ECONOMIC AND COMMERCIAL

ENGAGEMENT
COMMERCIAL RELATIONS
The 4th India-Morocco Joint Commission was held on 28-29 April 2011 in New Delhi. The
meeting was co-chaired by Shri Anand Sharma, Honble Minister for Commerce & Industry and
the Moroccan Minister for External Trade, Mr. Abdellatif Maazouz. During this visit, Mr.
Abdellatif Maazouz also met Shri Sharad Pawar, Minister of Agriculture & Shri Virbhadra Singh,
Minister for Micro, Small & Medium Enterprises. The meeting of India-Morocco Joint Economic
Council chaired by CII of India and the CGEM (Confederation General of Moroccan Enterprises)
also took place in New Delhi on 29 April, 2011.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

13

In October 2010, Honble Minister of State for Commerce and Industry, Shri Jyotiraditya Scindia
visited Morocco. During the visit, the Honble MOS(C&I) met with the Moroccan Minister for
External Commerce, Mr. Abdellatif Maazouz and discussed various aspects of bilateral trade and
commerce. The Honble MOS(C&I) also participated in the World Economic Forum for Middle
East and North Africa held in the city of Marrakech.
For long, India has been one of the major markets for Moroccan phosphate and its derivatives.
Other main items of export to India are metallic ores and metal scrap, semi-finished products
and inorganic chemicals. The main items of Indias exports to Morocco are cotton yarn,
synthetic fiber, transport equipment, pharmaceuticals, agricultural implements, chemicals,
spices and manufactured metals. The balance of trade has been in favour of Morocco because
of imports of phosphoric acid and rock phosphate by India. The quantum of bilateral trade,
which was US$ 1.63 billion in 2010, reached US$ 2.04 billion in 2011 (including Indias exports
to Morocco at US$ 587.2 million and Indias imports from Morocco at US$1.45 billion). The
trade turnover between the two countries stood at US$1.61 billion in 2012 (including Indias
exports to Morocco at US$ 517.7 million and imports at US$1,101.6 million); the slight decline
in trade vis-a-vis 2011 could be attributed to the global economic meltdown, the current weak
state of the European economy, regional turmoil and also due to the huge trade growth in the
base year. Trade volumes are expected to pick up in the following years.
An India-Morocco joint venture in fertilizer sector in Morocco, called IMACID, located at Jorf
Lasfar, about 150 Kms south of Casablanca, was set up in November 1999 between M/s
Chambal Chemicals & Fertilizers Ltd. of the Birla Group and Office Cherifien des Phosphates
(OCP) on the Moroccan side to produce phosphoric acid. In 2005, Tata Chemicals Ltd. joined
as a third equal partner in this joint venture. At present, the JV is producing around 430,000 MT
per annum of phosphoric acid, nearly all of which is imported by India. The Moroccan
phosphate organization, OCP, has invested in Paradip Phosphates Ltd. in India.
Among other business activities, TATA Motors has a plant in Casablanca for manufacturing
bus bodies. Ranbaxy has a technical collaboration with Afric-Phar for distribution of their
finished products. It has set up their manufacturing plant for medicines in Casablanca and
commercial production is expected to begin. PepsiCo India has acquired the beverage makers
entire franchise bottling operations in Morocco. Indian industry and business associations CII,
FICCI and ASSOCHAM have institutional arrangements with Moroccan industry and business
associations. A number of trade delegations from various industry and export promotion
councils of India, such as led by ASSOCHAM, CAPEXIL, TEXPROCIL and EEPC have been
visiting Morocco periodically. During these visits, a number of trade promotion activities such
as expositions, buyer-seller meets, etc., are organized.

MOROCCO ECONOMIC PERSPECTIVE

The engine of Moroccos steady economic growth under market economy has been underway
for more than two decades and this period accelerated privatization of the commercial
acquisition and nearly 114 public enterprises merged into it. Morocco has also opened its
increasingly market-oriented economy to investment in telecommunications, water distribution,
energy production, textiles, and information technology and road construction with the
consultation of World Bank. The state acts only as a regulator and supervisor of the national
economy and the private sector play its prime role in leading the engine of the economy. The
growth of Moroccos real GDP was at 8.1% in 2006 that persuaded its economy for mutual
cooperation with India in different fields of mutual benefit such as:
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

14

 Agriculture: Agriculture is the Moroccos strongest economic sector shares wheat, barley,
citrus fruit, vegetables, olives, Fish and livestock. Moroccos agricultural output makes it
one of the best ranking countries in the world. Moroccan farmers have lately carved a large
niche in Europes booming organic foods market. The country is missing out on a
significant opportunity exporting agricultural produce without processing as it is not
getting real value from European market. India as the second largest producer of fruits and
vegetables knows to deal this issue effectively and Indian investors are more than welcome
in this very field.
Industrial Sector: There are strong sectors working in mining (phosphates, manganese,
lead, silver, and copper), energy, manufacturing (which includes handicrafts), construction,
services and tourism plays an important role in the Moroccan economy.

THE GROWTH MARKETS IN MOROCCO

There are significant growth prospects for bilateral economic relations between Morocco and
Indian entrepreneurs in:

Pharmaceuticals And Medical Equipment

Food Processing and Food Industry
Electronics
Call Centers & IT
Fish/Fish Processing
Motion Picture Industry
Stone and Cut Industry
Telecommunications and Insurance

INDIA-GHANA ECONOMIC AND COMMERCIAL ENGAGEMENT

Ghana's economy has been strengthened by a quarter century of relatively sound management, a
competitive business environment, and sustained reductions in poverty levels. Ghana is well
endowed with natural resources and agriculture accounts for roughly one-quarter of GDP and
employs more than half of the workforce, mainly small landholders. The services sector accounts
for 50% of GDP. Gold and cocoa production and individual remittances are major sources of
foreign exchange. Oil production at Ghana's offshore Jubilee field began in mid-December, 2010,
and is expected to boost economic growth. President MAHAMA faces challenges in managing new
oil revenue while maintaining fiscal discipline and resisting debt accumulation. Estimated oil
reserves have jumped to almost 700 million barrels. In 2009 Ghana signed a three-year Poverty
Reduction and Growth Facility with the IMF to improve macroeconomic stability, private sector
competitiveness, human resource development, and good governance and civic responsibility.
Sound macro-economic management along with higher prices for oil, gold and, cocoa helped
sustain high GDP growth in 2008-12.
Trade between India and Ghana amounted to US$818 million in 2010-11 and is expected to be
worth US$1 billion by 2013. Ghana imports automobiles and buses from India and companies like
Tata Motors and Ashok Leyland have a significant presence in the country. Ghanaian exports to
India consist of gold, cocoa and timber while Indian exports to Ghana comprise pharmaceuticals,
agricultural machinery, electrical equipment, plastics, steel and cement.
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

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Table 4: India Ghana bilateral trade (us$)

S.No. Year

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

1.

EXPORT

537.85

390.52

579.77

800.35

744.05

2.

%Growth

-27.39

48.46

38.05

-7.04

3.

India's Total Export

178,751.43

251,136.19

305,963.92

300,274.12

4.

%Growth

-3.53

40.49

21.83

-1.86

5.

%Share

0.29

0.22

0.23

0.26

0.25

6.

IMPORT

172.63

147.01

159.75

403.67

281.66

7.

%Growth

-14.84

8.67

152.69

-30.22

8.

India's Total Import

288,372.88

369,769.13

489,319.49

491,945.05

9.

%Growth

-5.05

28.23

32.33

0.54

10.

%Share

0.06

0.05

0.04

0.08

0.06

11.

TOTAL TRADE

710.48

537.52

739.52

1,204.02

1,025.71

12.

%Growth

-24.34

37.58

62.81

-14.81

13.

India's Total Trade

467,124.31

620,905.32

795,283.41

792,219.17

14.

%Growth

-4.47

32.92

28.08

-0.39

15.

%Share

0.15

0.12

0.12

0.15

0.13

16.

TRADE BALANCE

365.22

243.51

420.02

396.69

462.38

17.

India's Trade Balance

-118,400.95

-109,621.45

-118,632.94

-183,355.57

-191,670.93

185,295.36

303,696.31

488,991.67

The Government of India has extended $228 million in lines of credit to Ghana which has been
used for projects in sectors like agro-processing, fish processing, waste management, rural
electrification and the expansion of Ghana's railways. India has also offered to set up an IndiaAfrica Institute of Information Technology (IAIIT) and a Food Processing Business Incubation
Centre in Ghana under the India-Africa Forum Summit. India is among the largest foreign investors
in Ghana's economy. At the end of 2011, Indian investments in Ghana amounted to $550 million
covering some 548 projects. Indian investments are primarily in the agriculture and manufacturing
sectors of Ghana while Ghanaian companies manufacture drugs in collaboration with Indian
companies. The IT sector in Ghana too has a significant Indian presence in it. India and Ghana also
have a Bilateral Investment Protection Agreement between them
India's Rashtriya Chemicals and Fertilizers is in the process of setting up a fertilizer plant in Ghana
at Nyankrom in the Shama District of the Western Region of Ghana. The project entails an
investment of US$1.3 billion and the plant would have an annual production capacity of 1.1 million
tonnes, the bulk of which would be exported to India. There are also plans to develop a sugar
processing plant entailing an investment of US$36 million. Bank of Baroda, Bharti Airtel, Tata
Motors and Tech Mahindra are amongst the major Indian companies in Ghana.

ITEMS OF INDIAN EXPORT TO GHANA

Capital equipment, petroleum, foodstuffs
INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

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ITEMS OF IMPORT FROM GHANA TO INDIA

Gold, cocoa, timber, tuna, bauxite, aluminum, manganese ore, diamonds, horticultural products

FACTORS HINDERING INDIA'S TRADE AND INVESTMENT

RELATIONSHIP WITH AFRICA
The CII-WTO Survey wanted to identify the major hurdles that Indian exporters face in exporting
specifically to African countries and similarly identify the issues of concern for African importers.
Respondents from India and Africa were asked to rank major difficulties they faced in exporting to
Africa and importing from India, respectively. Out of the 32 responses from India and 28 responses
from Africa, the major difficulties that emerged were: transport and logistics cost; access to African
buyers or Indian exporters; poor business environment; access to trade finance; and, informal
controls and corrupt practices. Indian exporters were also particularly concerned with restrictions
on inward investments in African countries and informal controls on exports.
Transport and logistics costs standout as a major impediment to Indian exports going to Africa.
Due to high shipping costs, and cost of insurance in exports to African countries, many Indian
exporters prefer to sell 'free on-board' basis instead of 'on-delivery' basis. This is generally not a
good practice when exploring new markets and engaging with newer or smaller buyers. However,
given the high transaction costs in exports to Africa and the risk perceptions attached, Indian
exporters may become risk-averse and place the burden on the buyer. Lowering transaction costs
are crucial to enhanced trade between India and Africa.
Knowledge of the African market has been cited as another major impediment in exports to Africa.
African economies have taken major strides to improve their business environment and growth
prospects in recent years. For instance, Rwanda was named the top performer in the World Bank's
Doing Business Index for 2010 and the country is serious about improving its business
environment. While big businesses in India have taken cognizance of this development in Africa,
the SME sector requires information on the growth prospects and how their products can find a
market there. The SME sector in India contributes over 40% of Indian exports. While business
associations can play a role, the commercial wings of Indian embassies in Africa can and are
playing a facilitating role by providing in-country research on market expansion opportunities
available to Indian exporters.
Similar to exports of merchandise goods, Indian exporters cite poor business environment and
access to buyers as some of the major impediments in exporting services to African countries. Many
services firms also find that getting work visas/ permits is particularly difficult in some African
countries. This is of particular importance for the Indian IT and IT enabled services firms that have
expanded their operations in the African continent.
The growing level of Indian investments in India is a promising sign for Africa's development
prospects. However, key to such investments growth is that existing investors find such ventures
profitable in an enabling business environment with legal protection. Some of the key hurdles
impeding Indian investments in Africa that emerged from the CII-WTO Survey are: poor business
environment; access to capital; absence of bilateral investment treaties; and, smaller market size.

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 Removing the bottlenecks to investments will be imperative for African countries to ensure that
they move to a sustainable investment-led development model. Investments from India will also
bring in technology that is "Appropriate, Affordable and Adaptable", pitched as the "Triple A"
technology transfer mode, during the 8th India-Africa Conclave.

Figure 4: Difficulties faced by exports of goods from India to Africa

Source: CII-WTO India-Africa Joint Trade Survey 2012-13

INDIA'S DEVELOPMENT ASSISTANCE TO AFRICA

The Indian Technical and Economic Co-operation (ITEC) has been the Indian government's
flagship programme in pursuing technical co-operation since 1964. India spends US$ 12 million
on ITEC activities annually. Since, 1964, the cumulative figure on this account has been US$ 2.8
billion, with US$ 1 billion going to Africa. It does so through a set of interconnected activities
including project assistance, capacity building, institution building and scholarships.
Project assistance receives 40% of the ITEC budget. The focus is on small and medium industry
that may include agricultural processing, carpentry, plastic molding and small engineering units.
Typically, the ITEC Division assists with project identification, the drawing up of a feasibility
report, project implementation and the training of local personnel to eventually manage and run the
project on their own.

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 For capacity building, the ITEC programme is collaborating with 48 Indian institutions that offer
as many as 220 courses in a wide variety of areas. For instance, in 2011-2012 nearly 8000 African
civilians benefited from training courses under ITEC and other bilateral schemes. Another 250
civilians received training under the programme through regional schemes conducted with AfroAsian Rural Development Organization (AARDO), African Union (AU), Pan African Parliament
and EAC among others.

At the 2nd India-Africa Forum Summit in 2011, India pledged to extend LOCs worth US$ 5.4
billion until 2014 to support the developmental requirements of India's African partners. The
triennial Summits, starting in 2008, are recognition of the growing importance of India-Africa ties
where the highest leadership from India and African countries come together for a structured
interaction and political and economic cooperation. The Summits have also become a platform
where the Government of India identifies the areas of co-operation, and where in existence, monitor
and expand such cooperation. It did so through the "Framework of Co-operation" in the 2008
Summit and adopted a follow-up "Framework for Enhanced Co-operation" during the 2011 Summit
that act as a road-map for implementing agencies in India and Africa.

Figure 5: Difficulties faced by Indian investments in Africa

Source: CII-WTO India-Africa Joint Trade Survey 2012-13

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INDIAN ASSISTANCEAFRICAN AND INDIAN BUSINESS VIEWS

The business community in both India and Africa were asked through the CII-WTO Survey on
what role they saw for India's development assistance in boosting trade and development with
Africa in the near future. A majority of the respondents saw a central role for India's assistance in
ensuring that India-Africa trade and investments continued to grow at a robust pace. Many African
respondents also forecasted a growing role for India's assistance, within the backdrop of declining
assistance from traditional donors to the continent. This underscores the emerging role of India in
the African continent and positively views the assistance that has been provided by India thus far.
Businesses from India and Africa were also asked to identify the key areas of assistance that could
be most effective in overcoming the barriers to greater India-Africa trade. One overwhelming area
for regulatory support highlighted by respondents was the area of market access through reduction
of tariff as well as non-tariff measures that impede trade between the partners. India, through the
DFTPI-LDC scheme, has already taken an ambitious step in ensuring duty-free and quota-free entry
to products from 33 of the 54 African countries.
Access to trade finance figures highly for African business, while increased exposure to the African
markets through trade promotion activities is cited by Indian businesses as the most effective form
of support to boost trading relations. Assistance on both these fronts is highly sought by both sides.
The other areas of assistance that would help build on the vibrant India-Africa trade are vocational
skills development and improving the business environment. For African businesses, transfer of
technology by Indian firms as well as through institutional mechanisms is another area where they
seek co-operation.
Many respondents also stated that Indian infrastructure companies could play a greater role in
strengthening Africas physical infrastructure sectors spanning roads, railways, ports, airports and
waterways. Africa needs an estimated US$93 billion a year for infrastructure development, and
faces a large funding gap of about US$ 45 billion, where India's assistance will be of importance.
Many of the concessional LOCs extended by the EXIM Bank are directed towards infrastructure
development in African countries mainly in power, road and rail projects.

KEY FINDINGS:
INDIA-AFRICA TRADE GROWTH 2005-11 HAS BEEN HIGHER THAN CHINAAFRICA TRADE.
India has been the fastest growing export market for African exports with growth of over 41.8%
annually between 2005 and 2011 higher than the 28% recorded with China. Similarly India's
exports to Africa grew at a brisk 23.1% between 2005 and 2011 -comparable to the 25.6% exports
growth achieved by Chinese exports to Africa. India-Africa overall trade grew at 32.4% during the
period, which is higher than China-Africa trade growth at 27%. However, the total value of IndiaAfrica trade (at US$ 63 billion in 2011) is only 38% of the value of China-Africa trade (at US$ 166
billion). India-Africa trade from a lower base, but has been largely fuelled by commodity exports
from Africa and a diverse range of high to medium technology exports from India.

INDIA AFRICA TRADE RELATIONS (NIGERIA, MOROCCO, GHANA, EGYPT)

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 AFRICA'S EXPORTS TO INDIA ARE CONCENTRATED IN A NARROW RANGE OF

PRODUCTS, EXPORTING COUNTRIES, BUT SHOWING SIGNS OF
DIVERSIFICATION.

The two products, crude oil and liquefied natural gas, account for nearly two-thirds of Africa's
exports to India. The top six products, at the HS 6 level, account for over 87% of African
exports. This denotes a high product concentration of exports that are mainly in commodities.
Due to the persistent rise in global commodity prices between 2005 and 2011, value of Africa's
exports to India have risen faster than the volume of commodity exports, thus exposing exports
to global commodity price shocks.
25% of Africa's exports have some technology content, mostly in medium to low technology
goods. This export segment has grown over five-fold since 2001. Growth in oil and other
natural resources has obscured this fact. The top six exporters from Africa, viz., Nigeria, South
Africa, Angola, Egypt Algeria, and Morocco account for 89% of total African exports to India.
They are also the major exporters of commodities: Nigeria, Angola, Egypt and Algeria are
exporters of crude oil; South Africa's major exports are gold and coal; while, Morocco exports
mainly phosphates. The top six exporters also run a trade surplus of US$ 24.5 billion with India
that is partly offset by India's trade surplus with 40 of the 54 African countries.

Figure 6: India's comparative advantage as an assistance provider

INDIA'S EXPORTS TO AFRICA, ON THE OTHER HAND, ARE MORE

DIVERSIFIED AT THE PRODUCT-LEVEL AS WELL AS MARKET-LEVEL

India's exports to African countries are diversified at the product level and in destinations.
India's export basket to Africa is composed of refined petroleum products, automobiles, and
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21

pharmaceuticals, electrical and industrial machinery. Nearly 98% of Indian exports to Africa
have undergone some value addition with medium to low technology products accounting for
37% of the export basket. Exports share of high technology products (14%) and medium to
high technology products (26%) have seen an increase from the baseline levels in 2001, while
exports of low technology products (22%) have declined sharply from 41% in the baseline
period.

The top six destinations for India's exports account for just over 60% of total exports to Africa.
India's exports are also well diversified among the five regions of Africa, with East Africa
emerging as the top destination. This bears testimony to the efforts made by the Indian private
sector and the government that have stepped up the market expansion activities by making
African markets more accessible for Indian goods.

RECOMMENDATIONS:
TO BOOST AFRICA'S EXPORTS OF GOODS AND SERVICES TO INDIA

To sustain the growth in India-Africa trade there is a need to broaden the trade basket,
especially for Africa's exports. Greater value-addition to commodities within Africa is
necessary to enable African economies to benefit further from expanding trade with India.
Exports of value-added products require, inter alia, a positive business environment, access to
capital, skilled labor and sustained FDI that can be achieved through mainstreaming of trade in
national development strategies.
In the short to medium-term, African countries should look to overcome the hurdles faced by
African firms in exporting to India. From the CII-WTO Survey, it emerged that for African
exporters' access to Indian buyers, trade finance and informal controls and shipment delays are
some of the major concerns. The mitigation of transaction costs will have a significant impact
in enhancing the export competitiveness of African products. The focus, therefore, should be
on trade facilitation.
India's DFQF scheme DFTPI scheme for LDCs, holds great potential in boosting African
exports to India. The DFTP-I came into full force in August 2012 eliminating applied tariff
rates on about 85% of Indias total tariff lines, particularly, on tariff lines that comprise 92.5%
of global exports of all LDCs. This can significantly improve market access for 33 African
LDCs. WTO figures for 2010 show that only 5.3% of LDCs' imports into India came in dutyfree. Moreover, only 21 African LDCs are currently beneficiaries of the scheme while many
LDC exporters may simply be unaware of it. During the latest India-Africa conclave, African
leaders have suggested that Indias DFTP-I scheme should be made more comprehensive.
Preferential access has not yet been provided to LDC exports of poultry dairy products,
vegetables, fruits, unshelled cashew, coffee, tea, cereals, oilseeds, cocoa preparations,
beverages and spirits, chemicals, tobacco, rubber, raw silk, silk yarn, copper, iron and steel,
that are of major export interest to many African LDCs.
Diversification in African exports of services is also crucial for development of African
economies. Tourism, accounting for over 50% of African services exports, still holds immense
potential in exports to India by tapping into the growing tourism and business travel sector in
India. Bilateral co-operation and promotion of African tourism in India would increase
visibility and popularity of Africa as a travel destination.

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 TO BOOST INDIA'S EXPORTS OF GOODS AND SERVICES TO AFRICA

For Indian exporters transport and logistics costs, poor business environment along with access
to African buyers are cited as major difficulties. The annual India-Africa Conclave is an
important forum to bring buyers and sellers together. In addition, dedicated trade meets
connected with a particular country or sector will help address information asymmetries as well
as bring the growth markets of Africa closer to Indian producers.
Due to high shipping costs, and cost of insurance in exports to African countries many Indian
exporters prefer to sell free on-board basis instead of on-delivery basis. This is generally not a
good practice when exploring new markets and engaging with newer or smaller buyers.
Lowering transaction costs and risks are crucial to enhanced trade between India and Africa.
The export credit and trade finance institutions of India are playing a major role in market
access initiatives of Indian firms in Africa.

Figure 7: Type of support that would be most effective in helping

business overcome the barriers to India-Africa trade

EXIM Bank LOCs have historically galvanized Indias exports to Africa. However, there are
certain areas that mandate urgent attention, such as, delays in the release of sanctioned LOC,
monitoring of projects supported by LOC, greater transparency in the selection of projects to
be supported by LOC, and synchronization of different LOC projects that have received
funding from multiple sources.
Indian services exporters cite poor business environment and access to buyers as some of the
major impediments in exporting services to African countries. Many services firms also find
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23

that getting work visas/ permits is particularly difficult in some African countries. This should
be addressed at the governmental level to facilitate services trade.
The Indian SME sector requires information on the growth prospects in Africa and how their
products can find a market there. While business associations can play a role, the commercial
wings of Indian embassies in Africa can, and are playing a facilitating role by providing incountry research on market expansion opportunities available to Indian exporters.

INVESTMENT-LED TRADE TOWARDS GREATER ECONOMIC COOPERATION

India's investment-led trade approach could help sustain the dynamic trade growth between
India and Africa, and help extend trade both in terms of the number of partners involved and
also the range of goods and services traded. Investments for joint ventures between the
countries would best open up the route for enhancing goods trade.
Removing bottlenecks to Indian investments, including, protection of investments through e.g.
BITs, access to capital, improved business environment, is imperative to ensure that Africa
moves to a sustainable investment-led development model.
Greater cooperation in agriculture and agro-processing would have a great bearing on the food
security situation in both Africa and India. Africas farm sector is expected to grow to the tune
of US$1 trillion by 2030, although this growth will largely depend on adequate technology
infusion. Indian companies could help Africas agriculture sector in farm mechanization, agroprocessing and storage, investments in training and development of human resources for the
farm sector, Greenfield investments, local vendor development, setting up of agro parks in
Africa, setting up of horticulture industries and floriculture units, among others. In boosting
Africas agricultural value addition, India too can meet its own food needs through imports,
especially in pulses where India faces a major shortfall.
Lack of adequate investments is a key reason for the underutilizations of Africas hydropower
potential and other renewable and non-renewable energy sources. India has proven expertise
in energy generation and can partner African countries build their energy infrastructure through
manpower, technical and financial investments and engineering inputs.
There should be strong engagement among India and African countries across diverse services
sectors. India has comparative advantage in many services sectors, including, ICT, education,
vocational skills development, health and financial services in which Indian investments will
serve the continent well.
The Southern African region is an important non-oil trading region for India. To help increase
trade India and South African countries are looking to expand the India-SACU PTA towards a
comprehensive economic co-operation agreement incorporating services and investments. The
plans for a comprehensive economic cooperation partnership agreement with Mauritius, and
similar agreements with several other regional communities in Africa should also be studied
further. A joint study is also underway to work out a free trade agreement with COMESA.

STRENGTHENING INDIA'S DEVELOPMENT ASSISTANCE IN AFRICA

India intends to "intensify aid-for-trade assistance" in the coming years. In view of this, greater
institutional mechanisms and global co-operation would help ensure that India's assistance
becomes more effective. India could benefit from the expertise of traditional donors on project
impact analysis and best practices to improve quality of delivery and introduce mechanisms for
better assessment of Indian project assistance.
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Trilateral co-operation with traditional DAC partners and emerging partners from the South
could also complement development assistance in Africa. Key gains can be made in sharing
professional skills in the design and delivery of Aid for Trade programme as well as project
finance and technology transfer.
The shortage of well-trained trade professionals is a problem for developing countries, which
lack the institutional capacity to train them. It should be a priority for India to train trade
professionals and to build institutional capacity in the African nations for negotiations at
bilateral and multilateral forums

REFERENCES:
http://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/india_africa_
report.pdf
http://mea.gov.in/Images/pdf/Nigeria-January-2012.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Morocco_December2013.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Bilateral_Brief_for_xp_December_2012.p
df
http://www.mea.gov.in/Portal/ForeignRelation/Ghana-January-2012.pdf
http://www.ficci.com/international/54523/Project_docs/AfricaDesk.pdf
http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/weoselgr.aspx
http://focusafrica.gov.in/About_Africa.html
http://www.wto.org/english/tratop_e/devel_e/a4t_e/global_review13prog_e/india_africa_
report.pdf
http://mea.gov.in/Images/pdf/Nigeria-January-2012.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Morocco_December2013.pdf
http://www.mea.gov.in/Portal/ForeignRelation/Bilateral_Brief_for_xp_December_2012.p
df
http://www.mea.gov.in/Portal/ForeignRelation/Ghana-January-2012.pdf
http://www.ficci.com/international/54523/Project_docs/AfricaDesk.pdf

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