Page 60 - ie2 August 2019

WORLDVIEW

Engineering exports to Africa, region wise ($ million) Mandela, on a visit to India, spoke of it
with much conviction and the growing
Region in Africa 2017-18 2018-19 socioeconomic interconnectedness.
Central Africa 348.3 464.2 Today, India and Africa have compre-
hensive diplomatic mechanisms at all
East Africa 1408.2 1529.4 three levels - continental, regional, and
North Africa 1582.0 1693.1 bilateral – and through multilateral fora.
India-Africa trade has multiplied and
Other South African countries 220.2 290.6
diversified in the last 15 years. India is
Southern African Customs Union (SACU) 1380.8 1622.3 ranked as the third-largest export desti-
West Africa 2023.2 2314.3 nation in Africa. India sources nearly 18
percent of its crude oil and also its LNG
Grand total 6962.6 7913.9 requirement, mostly from the West Afri-
can region. Indo-African bilateral trade
India-Africa bilateral trade ($ million) stood at $69.655 billion during 2018-19,
a 12.06 percent rise over $62.693 billion
2014-15 2015-16 2016-17 2017-18 2018-19 over the previous year with a 13.6 percent
India's total exports to Africa 32841.9 25039.0 23129.4 24904.0 28540.3 growth in Indian engineering exports
to Africa over the same period, totalling
Growth % -23.8 -7.6 7.7 14.6
$7.913 billion during 2018-19.
India's total imports from Africa 38634.88 31667.27 28844.71 37789.2 41114.73 With the African continent, Indian in-
Growth % -18.0 -8.9 31.0 8.8 vestments are steadily growing in a range
India's trade balance with Africa -5793.0 -6628.3 -5715.4 -12885.3 -12574.4 of sectors and India has become the
fifth-largest investor in Africa with cu-
India's engineering exports to Africa 8504.25 6642.15 5826.66 6964.13 7913.9 mulative investments at over $54 billion.
Growth% -21.9 -12.3 19.5 13.6 Sizeable investments have been made
Share % of total exports to Africa 26 27 25 28 28 in oil and gas, mining, banking, phar-
ma, textiles, and other sectors in African
countries. Several Indian companies have
lished, making use of the Red Sea to cross The stay of Mahatma Gandhi in South entered into joint ventures in Africa. They
the Arabian Sea directly to southern In- Africa between 1893 and 1915 remains have the experience, technology, and cap-
dia. Traces of Indian influences are visi- one of the main events which paved the ital to unlock these African resources and
ble in Roman works of silver and ivory, or road to the modern-day political rela- create value for host governments. Many
in Egyptian cotton and silk fabrics. The tions. important firms from Africa also have es-
Indian presence in Alexandria may have tablished their presence in India.
influenced the culture but little is known Contemporary ties The Duty Free Tariff Preference scheme
about the manner of this influence. India’s partnership with Africa is based announced by India for least developed
Clement of Alexandria mentions the on a model of cooperation which is re- countries (LDCs) benefitted African na-
Buddha in his writings and other Indian sponsive to the needs of African coun- tions and has contributed towards steady
religions find mentions in other texts of tries. It is demand-driven and free of increase in the bilateral trade figures by
the period. Relations attained stronger conditionalities, based on a history of extending duty-free access to 98.2 per-
levels during medieval times due to the friendship, historical ties, and a sense of cent of India’s total tariff lines. At least
development of trade routes between the deep solidarity and not limited only to the 38 African countries enjoy the benefits of
Mediterranean and Asia, through Arabia. bilateral political level. The ever-chang- the Indian DFTP scheme.
The presence of Africans in India dates ing myriad geopolitical demands of the Africa is a continent which receives
back to the eighth century CE. world have been continuously observing nearly 20 percent of Indian pharmaceu-
During British colonial rule in the In- the perpetual renewal of newer coopera- ticals. Many of India’s pharma companies
dian subcontinent and large parts of Afri- tive constructs. The concept of Indo-Af- have established units in various parts of
ca, Bombay was already a centre of ivory rican synergy strengthened in popularity Africa, including Ethiopia, Uganda, DRC,
trade between East Africa and Britain. when late South African President Nelson Zambia, and Ghana. Medicines and med-

60 l INDIAN ENGINEERING EXPORTS l AUGUST 2019