Discuss the strategic and economic importance of Asia Africa Growth Corridor (AAGC) for India.
The Asia Africa growth corridor (AAGC) envisages for a people-centric sustainable growth strategy, the contours of which would be evolved through a process of detailed consultations across Asia and Africa, engaging various stakeholders- governments, firms, think tanks and civil society.
Economic importance of Asia Africa growth corridor
- Trade Facilitation is a major component of AAGC Framework. The AAGC aims to provide better connectivity and logistical support to promote trade.
- AAGC initiatives will also enable Afro-Asian countries to industrialize and increase exports.
- AAGC initiatives will aim to integrate existing programmes of partner countries. This will spur activities/projects to augment production for exports.
- Both regions have the advantage of young demography and untapped potential. AAGC will aid in realising its potential.
- Establishment of optimum linkages and cooperation among the sub-regions of Asia and Africa will increase investments and create employment opportunities in the region.
Strategic importance of the AAGC
- China’s one belt one road initiative is creating huge suspicion and is being dubbed as Chinese Yuan imperialism. But lack of resources has resulted in countries unable to resist the Chinese initiative. AAGC will provide for an alternative which is according to the needs of the host countries in a transparent manner.
- AAGC provides for unique global north-south cooperation. This will aid in bridging the gap and confidence between the global north and global south.
- AAGC promotes the new emerging concept of Indo-pacific and will aid in keeping the lines of communication safe in the strategically important Indian ocean
- AAGC will also provide India with an opportunity to counter the increasing influence of China in the region.
- AAGC will further aid in augmenting the role of India as a leader of the global south.
AAGC marries India’s brand of human resources development and capacity building with Japan’s objective of delivering quality infrastructure in the region. Moreover, both India and Japan have consulted with think tanks in Africa and Asia while conceptualizing this plan. Efforts should be made to fast track the next steps to turn these innovative ideas to reality.