African heads of state gathered in New Delhi on 26-29 October for the Third India-Africa Forum Summit met with Indian officials to discuss economic and trade cooperation among other issues. At the end of the 4-day event, they adopted the Delhi Declaration dubbed “Partners in progress: Towards a dynamic and trans-formative"Cooperation in Trade, Technology and Capacity Building form the basis of our relationship," said India Minister of Commerce, Ms. Nirmala Sitharaman.
Building on the legacy of the India-Africa Forum Summits (IAFS) of New Delhi, India in 2008 and Addis Ababa, Ethiopia in 2011, the declaration is intended to develop mutual benefits of closer economic cooperation while integrating the new global development agenda outlining the international Sustainable Development Goals for the next 15 years.
In a declaration, Liberia’s President Ms. Ellen Johnson Sirleaf expressed that such a gathering was effective as it led to the deepening of the relationship between India and Africa with significant expansion in trade, in private sector investment, and in bilateral pro-grams and financing arrangements.
India is Africa’s fourth-largest trading partner, after China, the U.S. and the European Union. Over the past decade, the two-way trade between India and Africa has witnessed an important increase up to US$70 billion currently.
Trade and development
According to the declaration, African heads of states and Indian Prime Minister Mr. Modi agreed to encourage further “direct trade relations through opening of new markets” and “raise the level of trade relations” in order to contribute to sustainable growth and economic development.
The declaration also welcomed the recent signature of the Tripartite Free Trade Agreement linking together 26 African countries and spanning across three main African regional economic communities: Southern African Development Community (SADC), East African Community (EAC) and Common Market for East and Southern Africa (COMESA).
The declaration called the international community to extend benefits from initiatives aimed at alleviating the burden of debt towards African Heavily In-debted Poor Countries.
"Trade and economic exchanges between India and Africa are a vital component of our all-round relationship with this rising continent,” declared India's Minister for External Affairs Ms. Sushma Swaraj while inaugurating the India-Africa Business Forum held in New Delhi as part of the summit.
Ms. Sitharaman said that India and Africa were aligned on WTO issues and both were in favor of multilateral trading system.
Technological cooperation
The outcome document contains several provisions laying particular emphasis on the need to support infrastructure development and technological cooperation in Africa.
development agenda” which focuses on various aspects of economic and development cooperation between the two fast developing markets.
The collaboration in the use of development of appropriate technologies, especially for agriculture and communications, is stressed throughout the declaration, likely with a nod to India’s tech boom and Africa’s need for technological infrastructure, mention some observers.
"Our partnership is not focused on an exploitative or extraction point of view, but is one that focuses on Africa's needs and India's strengths," said Mr. Vikas Swarup, spokesman for the Indian Ministry of External Affairs.
While Africa is rich in natural resources and skilled human resources, India could be a source of technology to add value to Africa’s abundantly available raw material, noted the Minister of Industry and Commerce of Zimbabwe, Mr. Mike Bimha.
"We would like to see added value to what we produce and to trade not just among ourselves but also with the outside world," Mr. Bimha said.
Indian preferential scheme
“We agree […] to fast track the implementation of the Duty Free Tariff Preference scheme offered by India,” reads the declaration.Last year India revised its duty-free market access scheme for least developed countries (LDCs) in order to increase trade with the African region.
India launched the DFTP scheme for LDCs in 2008. This DFTP scheme is open to all 49 LDCs, including 22 African LDCs.Products of direct interest to Africa, which are covered by the scheme include cotton, cocoa, aluminum ores, coppers ores, cashew nuts, cane sugar, ready-made garments, among others.
Some studies show however that the scheme excludes several products in which African LDCs are known to have a comparative advantage such as coffee, tea, fruit and vegetables, spices and iron and steel. Some observers have therefore stressed that “the scheme’s effectiveness is limited by its very design.” According to the declaration the next India-Africa Forum Summit will be held in 2020.
(Source – International Centre for Trade and Sustain-able Development)
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