How does India see its place in the economic space of rising natural resource rich Africa?
India views Africa as an important economic partner and sees several areas of opportunity to strengthen ties and deepen engagement with the resource-rich continent. Some key factors shaping India’s perspective include:
- Energy security – Africa has abundant reserves of oil, gas and vital minerals that India needs to fuel its rapid economic growth. Securing access to these resources through trade partnerships and investments is a strategic priority for India. Major Indian state-owned firms are pursuing exploration projects across Africa.
- Food security – India has cultivated partnerships with several African nations to acquire farmland and boost food production to address its food security needs. Africa’s agriculture and agri-business sector is seen as ripe for investment.
- New market opportunities – The economic rise of Africa, coupled with its growing population and urban middle class offers Indian businesses a new export destination and investment destination. From vehicles to consumer goods to medicines, Indian companies see Africa’s consumer market as important for growth.
- South-South cooperation – India positions itself as a partner to support Africa’s growth through technical assistance and affordable innovations suited to African needs. The India-Africa Forum Summit and initiatives like the Pan Africa e-Network Project underscore South-South collaboration.
- Countering China’s influence – With China expanding its political and economic influence across Africa through Belt and Road and other initiatives, India aims to counterbalance by boosting its own strategic presence and partnerships.
The Government of India and Indian industry see stronger engagement with Africa as important for India’s own growth needs and global standing in the 21st century. Developing economic relationships is crucial for India to make its presence felt in the region.
Topics: GS-II: India's Foreign Policy Neighbourhood International Relations