Immense potential exists for enhancing trade between India, Africa: Study.

Exim Bank's latest study highlights that the two-way trade between India and Africa has witnessed a robust 12-folds rise from USD 5.2 billion (2001) to USD 63 billion (2011).

Underlying this trade growth is the significant rise in Africa's trade balance with India, from a deficit of USD 0.4 billion in 2001, to a trade surplus of USD 16.4 billion in 2011.

While India has emerged as the third largest export destination for Africa, India, however, ranks as the fifth largest source for Africa's imports, highlighting the potential for further enhancing Africa’s imports from India.  

The latest publication titled - ''Enhancing India's trade relations with Africa: focus on select countries'' - was released at the hands of Arvind Mayaram, secretary, Department of Economic Affairs, Ministry of Finance, Government of India during the India-Africa partnership day, jointly organized by Exim Bank and Federation of Indian Chambers of Commerce and Industry (FICCI), in Marrakech, Morocco as part of the Annual Meeting of African Development Bank Group.

Potential to enhance India's exports to Africa can be accessed from the fact that, despite the increasing trend in India's exports to Africa, India's share in the import basket of major importers in Africa is still marginal. For instance in 2011, India had  only 1.7% share in Algeria's total imports; 3% share in Angola's total imports; 3.6% share in Egypt’s total imports; 1% share in Morocco's total imports, 4.3% share in South Africa’s total imports, and 3.4% share in Nigeria’s total imports.

The study draws attention to the fact that with a view to balancing the burgeoning trade gap between India and Africa, there is need for increased focus on India's export potential to the major countries in Africa with which India maintains the largest and rising trade deficit as also to potential countries in Africa, based on projected growth of imports, projected growth of GDP and size of the market.

With a focus on enhancing India's exports to Africa, while also addressing the issue of rising trade deficit, Exim Bank's study attempts to identify potential focus items for increased exports to select countries in Africa, based on India's export capability and import demand in focus countries, up to the 6-digit level of HS commodity code classification.

Source : myiris.com