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Changing Perspectives of India’s Engagements in Africa.

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Presentation on theme: "Changing Perspectives of India’s Engagements in Africa."— Presentation transcript:

1 Changing Perspectives of India’s Engagements in Africa

2 India and Africa

3 Indian Foreign Policy in the Post Cold War Era Shift in Indian Foreign Policy Change in India´s Africa Policy Divergent opinions on India´s Foreign Policy

4 Divergent Opinions (1) The transition in national consensus from socialism to capitalism (2) The transition from the ‘past emphasis on politics to a new stress on economics in the making of foreign policy’ (3) The shift from Third World-ism to the promotion of its own self-interest

5 Divergent Opinions (4) Rejection of the ‘Anti-Western mode of thinking’ and… (5) The transition from idealism to pragmatism Other views India is not likely to reject idealism in its foreign policy orientation and will probably uphold the cause of Third World-ism

6 Divergent Opinions Much more open India Driven primarily by a capitalist ethic Ready to engage with the West Motivated primarily by strategic rather than idealist considerations Ready to join in the ‘scramble for Africa’

7 Divergent Opinions The India that we are likely to see is one that continues to be a difficult negotiating partner for the West Not yet ready to abandon its Third World-ist principles A leader of counter hegemonic coalition, rather than going it alone as a great power

8 Mixed Signals from Policy Makers India signed a nuclear deal with USA India’s willingness to block the Doha negotiations The first image is one of a rising power that shows increasing conformity of interests with the established system

9 Mixed Signals from Policy Makers The latter image, suggests the emergence of a power with at least some regime- challenging intentions that represent a traditional Southern vision of Third World-ism A focus on India’s policy towards Africa helps us differentiate between what’s real and what’s myth

10 India-Africa Relations in the Historical Context India´s traders had been navigating the Indian Ocean and visiting the Eastern Coast of Africa since 1st Century AD The main region in India from where goods were exported to Africa was Ariaca, in the north-western coast, particularly the Gulf of Cambay Demand for African ivory was high in India

11 India- Africa Trade Route

12 Indian Dhows

13 India Africa Relations in the Historical Context Indian sea merchants from the west coast of India, set sail from the Gulf of Kutch, and used alternating monsoon winds They sailed regularly to Africa’s Zenj Coast, for incense, palm oil, myrrh, gold, copper, spices, ivory, rhino horn and wild animal skins. They sold cloth, metal implements, foodstuffs like wheat, rice, sesame oil, etc.

14 India-Africa Relations in the Historical Context Al Masudi, Al Idrisi and Ibn Batuta had provided details of trade connections between India and African countries Ibn Batuta mentioned the presence of African slaves in India, who were known as Habshis It was an Indian sailor, Kahna, who guided Vasco da Gama to Cochin, in 1498

15 Strengthening Links between India and Africa Indentured labourers from India went to Africa around 1860 Asian contribution to the economic development in African countries Introducing Duka Mahatma Gandhi’s presence and political activities in South Africa

16 Strengthening Links between India and Africa India’s independence in 1947 enabled it to expand its leadership and influence in Africa, by actively supporting the anti-colonial freedom movements across the continent India was the first country to lodge a complaint against South Africa on its policy of discrimination in UN General Assembly, way back in 1946

17 Strengthening Links between India and Africa As a leader of the Non-Aligned Movement and the Group of 77, India also assumed a leadership position in the crystallization of the influential Afro-Asian block that dominated the UN General Assembly well into the 1960s In the Cold War period, India supported African countries, without interfering in their bipolar orientations

18 India-Africa Relations in the Post Cold War Period Over the first decade of the 21 st century, India has established itself as an increasingly influential player in Africa Asian drivers in Africa Summit Diplomacy of India and China

19 India-Africa Relations in the Post Cold War Period India-Africa Forum Summit, held in 2008 and 2011 Forum on China-Africa Co-operation held in 2000, 2003, 2006, 2009

20 India-Africa Relations in the Post Cold War Period Over the past five years, Africa’s trade with China and India has increased dramatically, reorienting trade away from their traditional partners, the OECD countries Between 1999 and 2010, Africa's terms of trade improved by around 30%, far more than any other developing region

21 India-Africa Relations in the Post Cold War Period At the bilateral level, outreach efforts towards Africa also evident

22 India’s engagements in Africa Focus Africa Programme under the Exim Policy Through this programme, the Government of India provides financial assistance to trade promotion organisations, export promotion councils and Indian missions for market development assistance.

23 India’s engagements in Africa In 2004, India pledged $500 million in the form of concessional credit facilities to 8 energy and resource-rich West African countries India’s active promotion of economic interaction with Africa is reflected in the significant increase in trade with African countries

24 India´s Trade with Africa India-Africa exports have leaped from US$ 14 million in 1997-98 to US$16 million in 2010-2011 Imports have increased from US $2018 million to US$ 26,062 during the same period

25 India’s Engagements in Africa To boost India’s trade through multilateral forum To promote bilateral & regional commercial relations with the COMESA Region. India’s Exim Bank has extended Lines of Credit (LOCs) to support export of eligible goods on deferred payment terms As of 2010, almost two-thirds of Exim Bank’s total operative LOCs were in Africa, amounting to a sizeable US$ 2.8 bn - with half of these LOCs having direct infrastructure focus

26 Trade & Investment These LOCs supplement the ‘Focus Africa’ Programme of the Government of India. At present, 66 LOCs are in operation, amounting to US $ 2.25 billion and covering 47 countries in the African region These LOCs are seen as facilitators for strengthening and expanding export trade between the respective regions and India, through deferred payment terms

27 India’s Engagements in Africa The India-Africa Forum Summit, held in May 2011, gave a new thrust to India’s engagement with Africa, with an increase in existing credit lines from US$ 2.15 billion to US$ 5.4 billion, for 3 years India also approved duty-free access to 94% of its total tariff lines, and preferential duty access to 92.5% of global exports to least developed countries in Africa

28 India-Africa Trade A major driving force in India’s trade with Africa is that India offers cost-effective and intermediate technology in fields of particular interest to Africa, such as information technology, agriculture, health and pharmaceuticals

29 India-Africa Trade & Investment In2010-2011, major exports from India to Africa include chemical and pharmaceutical products, machinery, transport equipment, food & livestock, products, etc. rather than manufacturing goods Commodities like gold and silver became very prominent as they accounted for two- fifth of total imports from Africa

30 India and China China has seen a much more rapid increase in exports to African, which grew by 48% annually between 1994, compared to 14% for India Most of the Chinese investments are in the oil-rich regions of Africa India-African trade pattern appears to be more diversified

31 Strategic Determinants & Drivers The search for natural resources represents one of India’s most important stakes in Africa; Indian companies are also active in oil-rich African countries A second driver relates to Africa as a new investment destination for the increasing global profile of India’s multinational corporate sector

32 Strategic Determinants & Drivers India’s investment in Africa is led by the private sector, with most of the investments in the services and manufactured sectors

33 Strategic Determinants & Drivers Indian conglomerates like the Tatas, Kirolaskars, pharmaceutical firms like Cipla and automobile companies like Mahindra have undertaken profitable projects in Africa The Tata Group has invested about US$ 100 million till 2009, and plans to triple that amount over the next 3-4 years

34 Strategic Determinants & Drivers A third driver is India’s capacity-building programme for African countries In capacity-building initiatives, ITEC (Indian Technical and Economic Co-operation) is the most popular programme in Africa – under which India has provided more than US $ 1 billion worth of technical assistance & training to African countries

35 Strategic Determinants & Drivers The Indian government is also financing an "e-network" project to enhance Internet connectivity in Africa, linking 5 regional universities, 5 speciality hospitals, 53 regular hospitals and 53 educational institutions across Africa to Indian universities and hospitals, via a satellite and fibre optic network

36 Strategic Determinants & Drivers In the India-Africa Forum Summit of 2011, the Prime Minister of India offered an additional US $700 million to establish new institutions and training programmes, in consultation with the African Union and its institutions

37 Strategic Determinants & Drivers Another driver is related to the security front, which represents a dramatic shift from earlier decades when the focus was on seeing Africa as a partner in securing India’s diplomatic agenda for disarmament and zones of peace

38 Strategic Determinants & Drivers India now has defence agreements/military co-operation with several African countries By 2008, India had emerged as the largest contributor to UN mandated operations in Africa Another determinant of India’s relations with Africa is rooted in the diplomatic weight Africa in international forums

39 Strategic Determinants & Drivers A sixth driver relates to the large Indian diaspora in the African continent – an estimated 100,000 Indian citizens reside in Africa, in addition to more than one million people of Indian origin who have settled in Africa for many generations

40 Strategic Determinants & Drivers India’s engagement with East Africa reveals a commitment to Third World-ism and alternative ideas of sovereignty and economic development which is more than what neo-liberal accounts would predict While not framed explicitly in terms of an alternative ideology, we see a broad commitment to sovereignty and non- interference

41 Strategic Determinants & Drivers Importantly, however, India’s Africa policy shows significant differences with China’s scramble for Africa This aggregates to a strategic but nevertheless, benign form of engagement, involving greater costs to India It also allows more free riding for the poorer countries of Africa – indeed, the ‘softer Indian way’ in Africa is India’s unique pathway to power

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