Exim Bank: African Continental Free Trade Area presents huge opportunities for India : Exim Bank
Using ITC’s export potential methodology, the study concludes that the bilateral export potential of India and Africa stands at $48 billion. The paper also reviewed the evolution of India’s development cooperation with Africa over the years and highlighted the need for India to intensify its efforts to strengthen this development partnership, especially in the context of the evolution of the global architecture in recent times. To understand the geographical and sectoral distribution of India’s project exports to Africa, contracts won by Indian project exporters in projects awarded by MDBs like AfDB and World Bank were also analyzed.
The study further recommends strategies to enhance India’s role in building a resilient post-pandemic Africa and help it resume its high growth trajectory and exports through increased collaboration in potential sectors. such as agriculture, health and renewable energy, among others. The study also recommends exploring other infrastructure financing mechanisms and filling the existing trade finance gap.
The study was released on Tuesday during the 17th CII-EXIM Bank Conclave on India-Africa Growth Partnership, attended by Piyush Goyal, Minister of Trade and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Government of India; Marie Cyril Eddy Boissageson, GOSK, Vice President, Republic of Mauritius; Badara A. Joof, Vice President, Republic of The Gambia; Dr James Wani Igga, Vice President, Republic of South Sudan; WK Mutale Nalumango, Vice President, Republic of Zambia; Netumbo Nandi-Ndaitwah, Deputy Prime Minister and Minister for International Relations and Cooperation, Republic of Namibia; Harsha Bangari, Managing Director, India Exim Bank.
Addressing participants at the inaugural session of the Conclave, Goyal emphasized that India views Africa as a partner in progress, with the India-Africa partnership best described through four pillars – people, business, commerce and government. He pointed out that the Africa-India partnership will play a very important role in the future and lift the developing world out of food insecurity and bring prosperity.
In his remarks, Bangari, Managing Director of India Exim Bank, pointed out that bridging the gaps in trade finance could unlock India and Africa’s latent export potential and increase the share of global exports. of the two regions. She highlighted the increased role of Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) in providing measures to reduce the trade finance gap.
Bangari emphasized that India must be proactive in its engagements in Africa and responsive to the changing needs of the continent, while underscoring the huge opportunity that the African Continental Free Trade Area (AfCFTA) agreement presents for India. .