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Write a brief note on the recent trends in Indo-Africa trade and provide a way forward on the issue.
Introduction:
Indo-African trade dates back to the Indus Valley Civilization where they had relations with Egyptian civilization. Being British colonies for many centuries India and African nations have faced the similar problem of resource exploitation by foreign countries. Thus many countries are under-developed and few of them are classified as developing countries.
Body:
According to Confederation of Indian Industry(CII) report, India’s exports and imports to Africa have reduced by 4.4% and 25% compared to last year.
India’s investment in Africa also has decreased from $3.2 billion to $ 2.9 billion
India has always supported the African people to obtain their self-reliance. India has also favored them in International forums and has propogated for their rights. Internally there are lots of problems in many African countries despite good amount of natural resources. Poor healthcare, corruption, lack of education have all contributed for the downgrading of the countries in Africa. The countries are still suffering from poor infrastructure. The global pandemic has hindered the trade relations between India and Africa.
Reasons for decline:
- Developed countries like US and China are contesting for African markets to have supremacy in geopolitical matters
- Covid-19 has struck hard
- Lack of investment by India in Africa
- Absence of strong Bilateral trade agreements
- Sanctions for some of the countries which have regular civil unrests
- Lack of suitable markets in the region
- Depleting natural resources
- Unscientific management related to various aspects such as industries
Conclusion:
To improve the relations, the grievances of the industries in Africa should be solved first. Technology should be adopted in healthcare, agriculture, resource management and space. Loans at concessional rates should be provided for the nations in distress. Private investments should be promoted. If such necessary steps are taken there may be an improvement in the trade relations.
