Madame Chairperson of the African Union Commission,
Secretary (Multilateral & Economic Relations), Ministry of External Affairs,
Excellencies, Ambassadors and High Commissioners,
Senior Office Bearers of ASSOCHAM, CII and FICCI,
Ladiesand Gentlemen,
I am happy to be here with you today for this inaugural event of the India-Africa Business Forum 2015, jointly organized by the apex business chambers of India. This is a laudable initiative towards bringing together leaders from government and business form both India and Africa as part of our continuing efforts to widen and deepen our trade and investment ties. I warmly welcome all participants, especially those who have travelled from different parts of Africa to our country.
India’s ancient and civilizational ties with Africa are recorded and well known to you all. What is significant is that it was trade and commerce that initiated and drove this relationship across the Indian Ocean. Sailing boats and ships carrying merchants and trades people have been crossing these vast waters for centuries to connect the two enormous land masses and their people. The lure of trade and fortune carried European adventurers like Vasco da Gama and colonialists through Africa to India and beyond. It was again economic activity, particularly manpower needed for railroad projects and sugarcane plantations, which transported vast numbers of Indians to the eastern and southern parts of the Continent, many of whom settled down in Africa. No matter at which point of history you may like to refer to, the inescapable fact is that business and related economic activity is a major driver of India’s close and friendly ties with Africa. It is therefore, most appropriate that this Business Forum has been organized as lead event culminating in the Third India-Africa Forum Summit (IAFS-III) to be held tomorrow.
Nowhere is the impact of economic growth and development as visible as in Africa, a large continent of 54 countries and over a billion people. Trade and economic exchanges between India and Africa are a vital component of our all-round relationship with this rising continent. The total trade figure of about US $72 billion in 2014-15, though impressive, since it signifies more than a ten-fold growth in a decade, is still below its potential considering the size of India and Africa, and a combined population of over 2.3 billion people, representing a huge consuming market for all sorts of goods and services. The fact is that we are not trading sufficiently with each other. Consequently, this commercial space is being ceded by us to third parties. Having realized the need for greater access to India’s market to African goods and exportable commodities, India was among the first developing countries to offer the Duty Free Tariff Preference (DFTP) scheme in 2008. The DFTP scheme, which is open to all 34 LDCs in Africa, has been designed to provide access for processed and manufactured goods from Africa under preferential terms to the Indian market. We are continuously exploring ways to make the scheme more effective.
India has had a presence in Africa for several centuries. The business acumen of the Indian diaspora who have made Africa their home has played a significant role in the growth and development story across the continent. Today, it is estimated that investments of the order of US$32-35 billion are spread all across Africa in multiple sectors of agriculture, manufacturing and services. As India’s economy has grown and matured, considerable amount of capital generated in India seeks new destinations outside the country, including in Africa. Indian investors are aware of the potential of Africa, with its large land mass, rich natural resources and a youthful demography, as an important destination for financial and technological investment. Our business persons are continually travelling to all corners of Africa seeking new business and investment opportunities. The Government of India and our State Governments on their part welcome and encourage such initiatives. We hope that the various countries in Africa will take steps to attract such investments from India, particularly for manufacturing and processing activities. I would also encourage Indian and African business enterprises to take advantage of our ‘Make in India’ initiative to work towards mutually beneficial joint business ventures.
As you are aware, India is also a destination for a large variety of commodities and finished and semi-finished inputs that go into our production processes. We would welcome more such inputs from Africa. In that context, I would urge African governments and businesses to organize road shows and related events to inform and attract investors and business persons from India to your respective countries. It would be useful to organize such events in different parts of the country, in consultation with respective State Governments, who can be approached through the States Division of the Ministry of External Affairs. We have also encouraged the various States of India to actively campaign and highlight their distinctive features and natural advantage for trade and investments with overseas partners, including in Africa.
I take this opportunity to thank ASSOCHAM, CII and FICCI for organizing this very important and impressive business event on the eve of India’s tryst with Africa at the Forum Summit tomorrow. I am confident that the deliberations between the business persons and trade promotion officials of Africa and India, will generate several innovative ideas. In the long term, this will assist not only in maintaining but also in giving a big push to the overall trade and investment climate between India and Africa.
Thank you.
