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PM in Africa amid a fall in trade
News
- PM to visit three African Nations to Boost India-Africa Bilateral Relation
Important facts
2. This visit is important as it is a reflection of Indian engagement and the priority of India with African nations.
3. Indian engagement with African nations has been increased over last 4 years.
4. However, recent studies show that Indian trade with African countries is declining.
5. According to “world investment report 2018” by UNCTAD (United Nation Conference on Trade and Development) Indian FDI in Africa in 2016-17 was $14 Billion which is lower than $16Billion at 2011-12.
6. Investment climate in African countries itself has seen drop in FDI flow by 21% according to UNCTAD.
7. Indian and Chinese Investment were same in 2011-12 at $16 Billion, but Chinese investment increased to $40 Billion in 2016-17
8. India-Africa trade figure from 2013 to 2017 has fallen, Import and Export figures fell from $67.84 billion to $51.96 Billion.
9. But in 2015 the investment figure jumped, as ONGC Vides Ltd got a stake in the ROVUMA gas field of Mozambique in 2014.
10. Issues with India
- India trade remained concentrated to the east part of the Africa only.
- Trade is majorly dominated by Petroleum products, which need diversifications.
