India and the Global South - 1 | PSIR Optional for UPSC (Notes) PDF Download

India Africa Relations

Areas of involvement in contemporary times

• Economics and Trade: In contemporary times, India-Africa trade has significant potential for growth. In 2012, the trade between the two regions was $70 billion, which decreased to $54 billion in 2015. However, this is still much lower than China's trade with Africa, which is over $200 billion, and the European Union's trade, which is around $450 billion. India has the opportunity to increase its trade with Africa to $100 billion. For instance, ONGC Videsh, an Indian multinational, has invested $6 billion (10%) in Mozambique's oil fields.
• Energy Security: India can diversify its procurement of oil and gas by engaging with African countries. In 2000, India imported 0% of its oil and gas from Africa. This number has increased to 26% in recent years. Latin America can also be a potential source of energy for India.
• bIndia can secure its food supply by importing pulses (worth around $2 billion) from East African countries like Mozambique and Kenya.
• Maritime Security: India's maritime interests in the Indian Ocean region are threatened by the increasing presence of China and piracy activities, such as those originating from Somalia. African countries like Seychelles and Mauritius have vast exclusive economic zones but limited capacity to monitor and protect them. India's SAGAR project, initiated in 2015, aims to enhance maritime security in the region. India has extended a $100 million Line of Credit for the defense sector to Mauritius and gifted INS Barracuda to the country in 2015. India is also setting up coastal surveillance systems like radar systems in these countries.
• Diaspora: The Indian diaspora in Africa has significant implications for India's foreign policy. Around 2.8 million people of Indian origin live in African countries such as South Africa (1.3 million), Uganda (50,000), Mauritius (882,000), Kenya (110,000), and Tanzania (60,000). The presence of Indian-origin people in these countries is primarily due to the British colonial policy of transporting Indian laborers. India can leverage its diaspora to strengthen its ties with African countries, something that China lacks.

Evolution of Indian Foreign Policy in Africa

1. Post-colonial era and the Cold War: India moved towards Africa during the Cold War era through the Non-Aligned Movement (NAM), supporting decolonization and movements against apartheid in African countries.
2. Indian Technical and Economic Cooperation (ITEC): Started in 1964, ITEC helped build India-Africa ties through skill-building, higher education scholarships, training and institution building in elections, and technical assistance.
3. India-Africa Summits: These summits facilitated engagement between India and African countries, leading to India promising a $9 billion Line of Credit (LoC) in 2008, announcing a $1 billion loan for the Pan African e-network in 2009, and opening 18 new embassies in 2015.
4. Techno Economic Approach for Africa-India Movement (TEAM 9): Envisioned in 2004, TEAM 9 focuses on nine West African countries, which are energy and mineral rich but relatively neglected.
5. Chinese presence in Africa: While India cannot compete with China's expertise in infrastructure, it can offer skill-building and sustainable quality infrastructure through initiatives such as the Asia Africa Growth Corridor (AAGC).
6. International Solar Alliance (ISA): This initiative involves large investments in African countries, and can be incorporated with ITEC programs to foster development and connectivity.
7. United Nations involvement: Africa's 54 votes in the UN and its 6,000 troops in peacekeeping missions provide opportunities for India to engage with the continent on global issues.
8. Diaspora: India can utilize the potential of its diaspora in Africa to strengthen people-to-people links and improve project implementation.
9. BRICS: India can use forums like BRICS to extend loans and push for closer involvement with Africa.

In conclusion, India's foreign policy in Africa has evolved from its post-colonial and Cold War beginnings to encompass a wide range of economic, political, and development initiatives. Strengthening these ties will be crucial for India's growth and global influence in the coming years.

Recent Developments in Africa and its Relations

• Transformation from a Dark Continent to a Continent of Hope: Over the years, Africa has transformed itself from being called the 'Dark Continent' to a continent full of hope and potential. This shift is due to various factors like political stability, economic growth, and social development in the region.
• Economic Growth and Investment Opportunities: Africa is currently witnessing a new 'gold rush,' with countries from all over the world investing in the continent. According to the International Monetary Fund (IMF), Africa is one of the fastest-growing economies globally, with a predicted market opportunity worth $5.6 trillion. This growth has attracted significant investments, paving the way for infrastructure development and job opportunities.
• Regional and Pan-Continental Consolidations: African countries have been working together to strengthen regional and pan-continental cooperation. This collaboration is evident through the establishment of organizations like the African Union (AU) and various regional economic communities.
• Africa Peace and Security Architecture (APSA): Established in 2002, APSA aims to prevent conflicts and promote peace and security across the continent. This initiative has played a crucial role in transforming Africa's image and creating a more stable and secure environment for its citizens.
• Vision 2063: Vision 2063 is a strategic plan developed by the African Union to guide the continent's development over the next 50 years. This plan emphasizes the importance of self-reliance, unity, and economic growth in transforming Africa.
• Continental Free Trade Agreement (CFTA): African countries are currently negotiating the CFTA, which aims to create a single market for goods and services across the continent. This agreement is expected to promote intra-African trade, boost economic growth, and create job opportunities.
• New Partnership for Africa's Development (NEPAD): NEPAD is an economic development program of the African Union. It was established to address critical challenges facing the continent, such as poverty, underdevelopment, and marginalization. NEPAD focuses on promoting good governance, infrastructure development, and regional integration.
• Rapid Population Growth: Africa's population is expected to reach 1.52 billion by 2025. This rapid population growth presents both challenges and opportunities for the continent. On one hand, it puts pressure on existing resources and infrastructure; on the other hand, it offers a vast labor force and potential consumer market for businesses.

What different countries are doing in Africa

• Japan is providing significant official development assistance, committing $100 billion to finance infrastructure and potentially increasing it to $200 billion in the future.
• Tokyo International Conference on African Development (TYCAD) is a platform for Japan's engagement with Africa.
• Enhanced Private Sector Participation in Africa (EPSA) is another initiative by Japan.
• Japan has partnered with India to form the Asia Africa Growth Corridor (AAGC) covering ASEAN, BIMSTEC, and Africa regions. The four pillars of AAGC include skill and capacity building, quality infrastructure and institutional capacity, development and cooperation projects, and people-to-people relations and partnerships.
• Japan focuses on West Africa, North Corridor, and Nacala Corridor in East Africa.

United States

• The US established the Atlantic Dialogue in Morocco.
• The New Africa Policy aims to counter predatory policies of China and Russia.
• The Prosper Africa Strategy 2018 promotes high-quality, transparent, and sustainable investment.
• The US increased its development assistance to around $8.7 billion in 2017.

Germany

• Germany launched the Compact for Africa to support economic development on the continent.
• France, Saudi Arabia, and the United Arab Emirates are also emerging as significant players in Africa.

China

• China has emerged as a major player in Africa, with its exports significantly higher than the US.
• Structured engagement began in 2000 with the formation of the Forum for China-Africa Cooperation (FOCAC).
• China has engaged politically in Sudan, with peacekeeping operations in Mali in 2013.
• China established its first military base outside of its territory in Djibouti, located in the Horn of Africa.
• The Belt and Road Initiative (BRI) is a massive infrastructure program for Africa.

India

• India has historically been a part of Africa's development, with Prime Minister Modi articulating India's Africa policy in Uganda in 2018.
• India's approach is characterized as benevolent, non-intrusive, benign, and caring-sharing, reflecting a paradigm shift from other countries' neo-colonial approaches.
• India leverages its diaspora and pursues trilateral collaborations with countries like Japan, Saudi Arabia, and the UAE.
• Structured engagement began in 2008 with the India-Africa Forum Summit.
• India has emerged as the 5th largest investor in Africa, with a focus on the Asia-Africa Growth Corridor, oil imports, and initiatives like ITEC and TEAM 9.
• The current Indian government prioritizes Africa, with high-level visits and engagements.

Overall, various countries are pursuing different strategies and initiatives in Africa to promote development, enhance economic and political ties, and counter the influence of other major powers.

Analysis by Scholars

• Behind Media blitz and official rhetoric, India’s Africa policy is reflecting constraints in its effective implementation. It is not so easy to divert African countries from China’s orbit.
• Our strategy is becoming clearer but efficacy of the tools for implementation remains questionable.
• India has yet to convince that it not only commits but also delivers. The disbursement of developmental aid is extremely slow.

Rajeshwari Pillai Rajagopalan | India’s China Challenge in Africa. Article.

• Though both the countries downplay the rivalries, yet nervousness of India is real. 
• Africa has become lot more significant but India’s long neglect and inadequate capacities have serious disadvantages vis-a-vis China’s strategic push and economic muscle.

C Rajamohan | The Great Game in Africa. Article.

• PM Modi has been successful in bringing Africa on the mental map at least. However to meet the scale of China, we need to be very proactive. Also China is not the only competitor.
• Up till now South East Asia has been central and Africa has been neglected.
• He suggest India to focus on the island nations, specially Mozambique Channel i.e Mozambique, Madagascar, Comoras.

Veda Vaidyanathan

• India’s Africa policy oscillated between passive and reluctantly reactive.
• India’s narrative is always dominated by historicity. /Gandhi….
• Policy glitches.
• Policies made in silos.

Mahesh Sachdev. Fortifying Africa Outreach. Article.

• India is also a developing country with resource constraints.
• India should not be a cash cow.
• India should put conditionalities on developmental assistance.
• India needs more connect between developmental aid and economic engagement.

Concerns raised by Indian Businessmen in Africa in a recent DVC (Digital Videoconferencing) organized by Indian High Commission and embassies of 11 African countries. Attended by 400 Indian business men. (May 3-6 2019)

• Improving Line of Credit System.
• Setting up of banks.
• Liberlize VISA system to increase trade and investment.
• Direct flights between India and Africa.
• Exploring possibility of rupee trade to overcome shortage of dollars.
• Creation of common database of buyer-suppliers.
• Developing robust trade dispute settlement mechanism.
• Establishing country chapters of FICCI or CII in Africa.

Conclusion