India wants to boost trade with the African continent

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: Underlining its “distinct” approach towards Africa, the government at the first-ever summit with African countries has announced a Duty Free Tariff Preference Scheme for Least Developed Countries (LDCs) to further boost both trade as well economic relations between the two.

Under this scheme, India shall unilaterally provide preferential market access for exports from all 50 least developed countries, 34 of which are in Africa, Prime Minister Manmohan Singh said at the inauguration of the first India-Africa summit. The scheme will cover 94% of India’s total tariff lines. Specifically, it will provide preferential market access on tariff lines that comprise 92.5% of global exports of all LDCs.

Products of immediate interest to Africa that are covered include cotton, cocoa, aluminium ores, copper ores, cashew nuts, cane sugar, ready-made garments, fish fillets and non-industrial diamonds.

Senior officials in the external affairs ministry made it clear that the engagement with the African continent was not to counter the growing Chinese presence in that region.

The two-day summit is part of India’s concerted effort to increase its imprint on the continent, in view of the stiff competition from China flexing its economic muscle to tap Africa’s considerable resources in energy and minerals.

Heads of states of 14 African nations, who have been chosen by the 54-nation African Union, were present where Singh reiterated India’s commitment to peace, stability and socio-economic development in Africa and for it to play an ever-growing role in international relations is steadfast.

“India is helping Africa develop its own infrastructure and in value addition of its resources. India believes in the philosophy of jointly developing resources to the mutual benefit of both India and Africa,” external affairs ministry officials stressed. While bilateral trade between India and Africa is growing and is estimated to be around $30 billion, it is still half of the China-Africa trade. China’s presence in the hydrocarbon sector in Africa far surpasses that of India.

India-Africa trade stood at $967 million in 1991. By 2006-07, India’s exports to Africa stood at $8.4 billion, while imports aggregated $11.4 billion, having almost doubled since the previous year.