Commerce Ministry interacts with Indian business community in Africa to boost trade ties
New Delhi, May 8 (KNN) To build an effective engagement with the Indian Diaspora in Africa to further deepen and strengthen India-Africa trade ties, the Commerce Ministry and Indian High Commissions along with the Embassies of eleven African countries arranged an interaction over Digital Video Conference (DVC) over two days, with the Indian business community in Africa.
The interactions with Indian Diaspora were held in Tanzania, Uganda, Kenya, Zambia, and Mauritius, Nigeria, Mozambique, Ghana, South Africa, Botswana, and Madagascar.
The DVC was attended by over 400 members of Indian business community in 11 African countries.
Africa has a huge demand for new business models for market entry, stable market access, entrepreneurship and investments in transport, telecom, tourism, financial services, real estate and construction, said Commerce Ministry in an official release.
This initiative of the Commerce Ministry emphasizes the need for a multipronged strategy for further enhancing trade and investment ties between the two regions.
Commerce Ministry recognizes that for formulating an effective export strategy it is imperative to engage the Indian business community in Africa for mutual gain for both sides as trade relations between the people of same origin instill greater confidence amongst trade partners.
During the interaction, the major issues highlighted by the Indian Business Community in these 11 countries includes improving the Line of Credit system and developing a facility for an affordable and competitive funding; setting up of Indian Banks/financial institutions in Africa; enhanced Buyers’ Credit facility for promotion of trade between the two regions.
Besides these, reviewing and liberalizing visa policies from both sides, need for direct flights between the India and African countries, exploring the possibility of rupee trade to address the issue of shortage of dollars in region, creation of common database of buyer-suppliers in the two regions for facilitating matchmaking for enhancement of bilateral trade were the other suggestions made during the interactions.
They also suggested development of a robust trade dispute settlement mechanism; more frequent and structured country/sector specific trade exhibitions in Africa and frequent visits of policy makers, chamber of commerce and investors for familiarization with local business and investment regime for informed decisions.
Department of Commerce welcomed the suggestions of the Indian business community and assured them that these suggestions will be shared with relevant stakeholders /Departments in order to incorporate the suggestions in the India-Africa strategy for trade promotion.
Senior officers from Department of Commerce and Ministry of External Affairs were present during the interactions. As per the latest available estimates the current strength of the Indian Diaspora in the African countries is 2.8 million out of those 2.5 million are PIOs and rest 220967 are NRIs.
The inherent strength of India in Africa is its rich and vast Diaspora which has established strong links with the political, economic and social fabric of the African continent.
In order to formulate a strategy to boost India-Africa Trade & Investment, the Indian Diaspora in Africa has to be leveraged further in order to ensure that the strategy is effective, it added.
India’s total trade with the African region during 2017-18 was USD 62.69 billion (8.15% of India’s total trade with the World). India’s share of exports to African countries as a percentage of India’s total exports to the world was of the order of 8.21% in 2017-18. Africa region’s share in India’s total imports from the World accounted for 8.12% in 2017-18.