India-Angola Joint Commission meet
India and Angola held their first joint commission meeting on September 8, 2020. In the meeting, the countries have decided to expand their trade relation. They held discussions in various sectors including Food processing, agriculture, defence, pharmaceuticals, health, digitization and telecom.
Why is Angola important for India?
Angola is important for India’s energy security. Angola have huge oil resources and is the second largest crude oil supplier in the sub Saharan desert, after Nigeria. Currently, GAIL imports LNG (Liquified Natural Gas) from Angola.
India Angola Relation
India’s relation with Angola dates back to pre-Independence era. India supported Angola in their freedom struggle against the Portuguese colonial rule, in an act of solidarity. Angola attained its independence in 1975. Since then, the Indian have maintained robust ties with Angola.
Officially, India established diplomatic relations with Angola in 1985. India has established an embassy in Luanda, Angola. Angola also has an embassy in New Delhi. Angola has always been supportive of candidature of India for various posts in the United Nations and supports India´s interest for her membership in United Nations Security Councils (UNSC) and tackling terrorism.
- Oil sector– India is Angola’s 3rd largest trading partner sharing about 10% external trade. It mainly accounts for bulk crude oil purchase. India’s corporate sector see Angola as a land of opportunity.
- Non-Oil Sector– A number of projects have been undertaken by Indian companies in services including retail, hospitality, agriculture plastics, scrap metal, steel and trading.
- Other Developmental Initiatives: India also extended a line of credit to the government of Angola for their Railway Rehabilitation Project. This project is being developed by the Rail India Technical and Economic Consultancy Services (RITES) Limited
India’s dependence on Angola in oil sector have increased the trade deficit. There also lies the issue of work permits, complicated procedures in business visas and language.
Category: International Current Affairs