India-Africa: Challenges & Way Ahead

INTERNATIONAL/ SECURITY

Topic:

• GS-2: India and its neighborhood- relations. 
• GS-2: Effect of policies and politics of developed and developing countries on India’s interests

India-Africa: Challenges & Way Ahead

Context: India’s Africa policy needs a critical review, despite New Delhi’s new initiatives to assist Africa through prompt despatch of medicines and later vaccines.

Issues with Indo-Africa relationship

1. India-Africa trade declined in 2020-21

• • Bilateral trade valued at $55.9 billion in 2020-21, fell by $10.8 billion compared to 2019-20, and $15.5 billion compared to the peak year of 2014-15.
  • India’s investments in Africa too saw a decrease from $3.2 billion in 2019-20 to $2.9 billion in 2020-21.

• • Total investments over 25 years, from April 1996 to March 2021, are now just $70.7 billion, which is about one-third of China’s investment in Africa. 

2. Global Competition

• • Africa experienced a sharpened international competition, known as ‘the third scramble’, in the first two decades of the 21st century. 
  • A dozen nations from the Americas, Europe and Asia have striven to assist Africa in resolving the continent’s political & social challenges and, in turn, to benefit from Africa’s markets, minerals, hydrocarbons and oceanic resources.

3.  Setback in India’s “Vax Diplomacy”

• • China successfully used the pandemic to expand its footprint by increasing the outflow of its vaccines to African Continent.
  • India’s vaccine supply to Africa suffered setback due to increased domestic demand in the wake of second wave of COVID-19 and the shortage of vaccine raw materials from the U.S. 
  • India wanted to consolidate its position in its subcontinent and hence Africa did not attain priority in Vax Diplomacy

Way Ahead

• The third India-Africa Forum Summit was held in 2015. The fourth summit, pending since last year, should be held as soon as possible, even if in a virtual format. 
• Fresh financial resources for grants and concessional loans to Africa must be allocated, as previous allocations stand almost fully exhausted. 

• India & Africa must develop and deepen collaborations in health, space and digital technologies.

• To overcome the China challenge in Africa, India should adopt partnership based approach with its international allies (like EU, US & Japan)

Connecting the dots:

• Pandemic in Africa and opportunity for India
• Asia-Africa growth Corridor