1. Core Context
• Rising uncertainty in Western markets (US & EU absorb ~40% of India’s exports).
• Africa emerging as a key alternative growth partner due to:
Large consumer base
Resource availability
Strategic geopolitical importance
• Need to shift India–Africa ties from transactional trade to long-term economic partnership.
2. Current Status of India–Africa Trade
• Africa is India’s 4th largest trading partner.
• Bilateral trade: ~$100 billion.
• India’s exports to Africa (FY24): $38.17 billion.
• Africa accounts for only ~6% of its imports from India → untapped potential.
• China dominates African trade (> $200 billion), especially in machinery and electronics.
3. Key Challenges Identified
• Over-reliance on low-value and commodity-based exports.
• Limited Indian manufacturing presence in Africa.
• MSMEs constrained by:
Lack of trade finance
High risk perception
Weak institutional support
High logistics and freight costs.
4. Five strategic pillars suggested by the editorial
1. Trade architecture
• Remove trade barriers.
• Engage with regional blocs like African Continental Free Trade Area (AfCFTA).
• Preferential and comprehensive economic partnerships.
2. Move to value-added trade
• Shift from raw commodities to manufacturing, joint ventures, and cross-border production.
• Use Africa’s growing consumer base and industrial demand.
3. MSME-centric strategy
• Expand Lines of Credit.
• Improve access to trade finance.
• Explore local currency trade and joint insurance mechanisms to manage political risk.
4. Logistics & connectivity
• Invest in ports, hinterland connectivity, freight efficiency.
• Develop India–Africa maritime corridors.
5. Services & people-to-people ties
• Leverage India’s strengths in Information Technology, health, education, professional services.
• Scale up digital trade and skill partnerships.
