India's trade with Africa increases to USD 70 billion in 2013
Updated: Nov 25, 2013 02:27:35pm
New Delhi, Nov 25 (KNN) India's trade with Africa has increased by 10 fold from around USD 7 billion in FY2004 to about USD70 billion in FY2013 which is the highest amongst all the regions such as Europe, America, Asia and Commonwealth of Independent States (CIS) and Baltics.
“The reason could be attributed to the increased importance of African countries in India’s bilateral trade relations. With the increasing diversification of India’s global trade towards emerging and developing countries, Africa has emerged as an important partner for India for trade and commerce during the recent years,” said President, PHD Chamber of Commerce and Industry Suman Jyoti Khaitan, referring to an analysis conducted by PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry.
While the speed of trade with Asia region has been the 2nd highest, having increased by 8 fold from around USD 57 billion in FY2004 to about USD 446 billion in FY2013, the 3rd highest speed of trade has been observed with CIS and Baltics from around USD 2 billion in FY2004 to about USD12 billion in FY2013.
Similarly India’s trade with America increased by about 6 fold from around USD 20 billion in FY2004 to about USD 113 billion in FY2013; and with Europe by 4 fold from around USD 35 billion in FY2004 to about USD144 billion in FY2013.
Areas in which India’s investment in Africa has increased significantly are agriculture, infrastructure, telecoms and mining.
Significantly, the cumulative investments across Africa stand at nearly USD 50 billion in the recent times, the key investment destinations in Africa including Ethiopia, Egypt, Ghana, Kenya, Mauritius, Mozambique, Nigeria, South Africa, Sudan and Tanzania.
According to Executive Director, PHD Chamber of Commerce and Industry Saurabh Sanyal, so far, the number of destinations of Indian overseas investment in Africa has increased with Uganda, Zambia, Zimbabwe, Liberia, Mali and Rwanda.
Further, there has been growing importance of line of credits to African countries in a view to promote development partnership and facilitate various projects financing and other projects of mutual interests.
The outcome of the increasing lines of credit to African region is expected to diversify India's bilateral and regional engagements with them, Sanyal said.
India’s key export items to Africa include mineral fuels, vehicles, pharmaceuticals, cereals, electrical and electronic equipments, nuclear reactors, iron and steel and plastic and articles etc.
South Africa is India’s largest export market in Africa, accounting for about 19-20 per cent in India’s exports to Africa. It is a leading market in Africa for India’s exports of petroleum oils, vehicles, pharmaceuticals and a major market for electrical equipments and machinery.
South Africa is also an important market for India’s exports of organic chemicals, articles of iron and steel and plastic and articles.
The other major export markets in Africa are Nigeria, Egypt, Kenya, Tanzania and Mauritius etc, the report said.
India’s key import items from Africa includes crude oil and mineral fuels, pearls and precious stones, unwrought gold or semi-manufactured gold, iron and steel, inorganic chemicals, edible fruits and nuts, fertilizers, ores and slag, salt and sulphur, aluminum and articles, etc.
The major import partners for India in the African region are Nigeria followed by South Africa, Angola, Egypt, Algeria and Morocco.
Going ahead, considering the various aspects of India-Africa trade, PHD Chamber of Commerce and Industry anticipates that the bilateral trade between them could touch USD 100 billion by FY2016 and carries the potential to touch USD 200 billion mark by FY2021 said Khaitan.
In order to enhance our partnership with new initiatives for the mutual benefit of India and Africa, an investment-led trade approach and tackling trade challenges on both sides must be addressed, which could aid in sustaining trade driven growth for both the economies, going forward, he added. (KNN Bureau)
“The reason could be attributed to the increased importance of African countries in India’s bilateral trade relations. With the increasing diversification of India’s global trade towards emerging and developing countries, Africa has emerged as an important partner for India for trade and commerce during the recent years,” said President, PHD Chamber of Commerce and Industry Suman Jyoti Khaitan, referring to an analysis conducted by PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry.
While the speed of trade with Asia region has been the 2nd highest, having increased by 8 fold from around USD 57 billion in FY2004 to about USD 446 billion in FY2013, the 3rd highest speed of trade has been observed with CIS and Baltics from around USD 2 billion in FY2004 to about USD12 billion in FY2013.
Similarly India’s trade with America increased by about 6 fold from around USD 20 billion in FY2004 to about USD 113 billion in FY2013; and with Europe by 4 fold from around USD 35 billion in FY2004 to about USD144 billion in FY2013.
Areas in which India’s investment in Africa has increased significantly are agriculture, infrastructure, telecoms and mining.
Significantly, the cumulative investments across Africa stand at nearly USD 50 billion in the recent times, the key investment destinations in Africa including Ethiopia, Egypt, Ghana, Kenya, Mauritius, Mozambique, Nigeria, South Africa, Sudan and Tanzania.
According to Executive Director, PHD Chamber of Commerce and Industry Saurabh Sanyal, so far, the number of destinations of Indian overseas investment in Africa has increased with Uganda, Zambia, Zimbabwe, Liberia, Mali and Rwanda.
Further, there has been growing importance of line of credits to African countries in a view to promote development partnership and facilitate various projects financing and other projects of mutual interests.
The outcome of the increasing lines of credit to African region is expected to diversify India's bilateral and regional engagements with them, Sanyal said.
India’s key export items to Africa include mineral fuels, vehicles, pharmaceuticals, cereals, electrical and electronic equipments, nuclear reactors, iron and steel and plastic and articles etc.
South Africa is India’s largest export market in Africa, accounting for about 19-20 per cent in India’s exports to Africa. It is a leading market in Africa for India’s exports of petroleum oils, vehicles, pharmaceuticals and a major market for electrical equipments and machinery.
South Africa is also an important market for India’s exports of organic chemicals, articles of iron and steel and plastic and articles.
The other major export markets in Africa are Nigeria, Egypt, Kenya, Tanzania and Mauritius etc, the report said.
India’s key import items from Africa includes crude oil and mineral fuels, pearls and precious stones, unwrought gold or semi-manufactured gold, iron and steel, inorganic chemicals, edible fruits and nuts, fertilizers, ores and slag, salt and sulphur, aluminum and articles, etc.
The major import partners for India in the African region are Nigeria followed by South Africa, Angola, Egypt, Algeria and Morocco.
Going ahead, considering the various aspects of India-Africa trade, PHD Chamber of Commerce and Industry anticipates that the bilateral trade between them could touch USD 100 billion by FY2016 and carries the potential to touch USD 200 billion mark by FY2021 said Khaitan.
In order to enhance our partnership with new initiatives for the mutual benefit of India and Africa, an investment-led trade approach and tackling trade challenges on both sides must be addressed, which could aid in sustaining trade driven growth for both the economies, going forward, he added. (KNN Bureau)
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