{"id":50849,"date":"2019-08-02T16:23:00","date_gmt":"2019-08-02T10:53:00","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=50849"},"modified":"2019-08-02T16:23:08","modified_gmt":"2019-08-02T10:53:08","slug":"answered-india-africa-relation-and-trade-is-crucial-for-india-to-achieve-5-trillion-economic-goal-discuss","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-india-africa-relation-and-trade-is-crucial-for-india-to-achieve-5-trillion-economic-goal-discuss\/","title":{"rendered":"[Answered] \u201cIndia-Africa relation and trade is crucial for India to achieve $5 trillion economic goal\u201d. Discuss."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> Contextual Introduction.
Body. <\/strong>Present trade scenario. Future prospects in Africa.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

India and Africa have social and economic relations since centuries. Africa has vast market which provide opportunities for trade and investment. With India aiming to become a $5 trillion economy by 2025, Africa provide an opportunity to achieve it through exports, investments and exploiting resources of Africa. There exists an enormous potential for improving the India-Africa trade and investment partnerships.<\/p>\n\n\n\n

India-Africa\ntrade Scenario:<\/strong><\/p>\n\n\n\n

  1. Bilateral Trade: <\/strong>India is Africa\u2019s third\nlargest trading partner. Since 2000, the economic cooperation between India and\nAfrica has increased, helped by the India-Africa Forum Summit (IAFS) process.<\/li>
  2. Exports:<\/strong> India\u2019s exports to Africa\nincreased almost four-fold from $7 billion in 2005-06 to $25 billion in 2015-16\n\u2013 accounting for 9.5% share in India\u2019s total exports.<\/li>
  3. Recent trends: <\/strong>Recent trends show a\nsteady decline in the India-Africa trade in both actual and comparative terms\nfrom 2013 to 2017. India\u2019s negative trade balance is mainly because of its high\ndemand for oil and energy resources. <\/li><\/ol>\n\n\n\n

    Africa as pivot\nto India\u2019s $5 trillion economic goal:<\/strong><\/p>\n\n\n\n

    1. Robust Market for investment:<\/strong> Africa\nprovide a number of opportunities for the Indian firms and investors to tap\ninto a larger, unified, simplified and more robust African market. It is\ncritical for India to view Africa not just as a destination for short-term\nreturns but as a partner for medium and long-term economic growth.<\/li>
    2. Investment destination:<\/strong> Africa has high\nmineral rich reserves like oil, metals, non-metals etc. The Indian Multi\nNational Enterprises (MNEs) should venture into various sectors of investments viz.\ntelecommunications, energy, computer sciences, power and automobile, among\nothers. The major destinations of such investments are Mauritius, Mozambique,\nSudan, Egypt and South Africa.<\/li>
    3. Exports:<\/strong> Exports are the key to achieve\nthe $5 trillion goal. India\u2019s exports to the African countries is dominated by\npetroleum products. There are opportunities for India to export pharmaceutical\nproducts, computer services, automobile etc. In order to reap the benefits of\nAfrican market, India needs to expand and diversify its export basket to\ninclude both primary and manufactured goods.<\/li>
    4. Resource rich region:<\/strong> Africa is known as\nthe land of untapped potential. It has incredible natural resources like oil,\ngas, gold, iron ore, manganese, uranium, diamonds, etc. This would help in\nboosting India\u2019s manufacturing sector and Make in India initiative.<\/li>
    5. Infrastructure opportunities: <\/strong>Africa also\nhas countless opportunities for infrastructural development. For the fastest\ndeveloping nation like India, which is eying an almost 9.0 percent growth rate,\nall this makes Africa a much desirable market for the growth of the Indian\ncompanies.<\/li>
    6. An opportunity for MSMEs: <\/strong>MSMEs\u2019\ncontribution is critical to India\u2019s sustainable growth. Large, medium and SMEs\nneed more presence in Africa on a war footing basis strategising an aggressive\nmarketing and business plans for additional revenue as part of their linear\nbusiness growth overseas.<\/li>
    7. Medical Tourism: <\/strong>Affordable healthcare\nstill remains a big challenge in Africa and thus remain the highest priority in\nevery country in the continent.It open up medical tourism business\nopportunities for Indian healthcare stakeholders. <\/li><\/ol>\n\n\n\n

      India should ensure that the full gains from Africa are being realised. As the next step, New Delhi can help the AU Commission prepare the requisite architecture, such as common external tariffs, competition policy, intellectual property rights, and natural persons\u2019 movement.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. Present trade scenario. Future prospects in Africa. Conclusion. Way forward. India and Africa have social and economic relations since centuries. Africa has vast market which provide opportunities for trade and investment. With India aiming to become a $5 trillion economy by 2025, Africa provide an opportunity to… Continue reading [Answered] \u201cIndia-Africa relation and trade is crucial for India to achieve $5 trillion economic goal\u201d. Discuss.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-50849","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50849"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50849\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}