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
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.
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.
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)
