Hindu Editorial Analysis : 4-April-2024
The relationship between India and Africa has deep historical roots, grounded in shared values and mutual respect. As the world changes, it is essential to explore new opportunities and strengthen this partnership for the benefit of both regions.
Growing Trade and Investment
Over the years, trade between India and Africa has witnessed significant growth:
- In 2011-12, trade was US$ 68.5 billion.
- By 2022-23, it surged to US$ 90.5 billion.
- Indian investments in Africa reached $98 billion in 2023, while trade is expected to hit $100 billion.
India has become one of the top five investors in Africa, demonstrating a commitment to fostering economic ties.
Collaborative Efforts
India and Africa have worked together on several important international issues, especially at platforms like the World Trade Organization (WTO). Notable joint proposals include:
- The Agriculture Framework Proposal.
- A proposal by India and South Africa for a waiver on intellectual property rights for COVID-19 vaccines.
During its G20 presidency, India further established itself as a leader for the Global South, and the African Union became a full member of the G20.
The Importance of Africa
Africa is vital for several reasons:
- It has a high growth rate of 3.8% and a youthful population, with 60% under the age of 25.
- By 2040, Africa’s population is expected to reach 1.1 billion people.
- Africa holds 30% of the world’s mineral reserves, crucial for clean energy transitions.
Access to these minerals is essential for India’s growth and energy needs, making strategic partnerships with African nations increasingly important.
Challenges Ahead
Despite the potential, several challenges threaten the relationship:
- The COVID-19 pandemic and the Ukraine-Russia conflict have strained African economies, leading to debt distress and food insecurity.
- China has become a major player in Africa, establishing itself as a key trading partner and investor through strong diplomacy.
- The delay in the fourth India-Africa Forum Summit raises concerns about the future of this partnership, especially after three successful summits in 2008, 2011, and 2015.
Why In News
“Present circumstances call for a new chapter in India-Africa relations, emphasizing the importance of collaborative efforts to navigate the complex global landscape and harness mutual strengths for sustainable development.”
MCQs about A New Chapter in India-Africa Relations
- What was the trade volume between India and Africa in 2022-23?
A. US$ 68.5 billion
B. US$ 90.5 billion
C. US$ 98 billion
D. US$ 100 billion
- Which proposal did India and South Africa jointly present at the World Trade Organization (WTO)?
A. Agriculture Framework Proposal
B. Climate Change Initiative
C. COVID-19 Vaccine Waiver
D. Trade Tariff Reduction
- Why is Africa considered vital for India’s future growth?
A. Africa has a population of over 1 billion people.
B. Africa holds 30% of the world’s mineral reserves.
C. Africa is a major competitor in trade.
D. Africa’s economies are all thriving.
- What challenge has affected African economies recently?
A. Rapid economic growth
B. Increased foreign investment
C. The COVID-19 pandemic and the Ukraine-Russia conflict
D. The establishment of the G20
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