Strengthening India-Africa Ties: Focus on Critical Minerals, Trade, and Technology
Context:
Union Minister of Commerce and Industry, Shri Piyush Goyal, addressed the 19th CII India Africa Business Conclave in New Delhi, emphasizing the potential of a strategic partnership between India and Africa.
- He outlined the opportunities for collaboration in various sectors, particularly in critical minerals, technology, and trade, aiming to enhance mutual growth and development.
Relevance:
GS-02 (Government policies and interventions)
Key Highlights:
- Critical Minerals Collaboration: Africa can play a pivotal role in meeting India’s growing need for critical minerals, particularly for sectors like electric vehicles (EVs). Shri Goyal highlighted the rich mineral resources in Africa and advocated for sustainable mining practices and joint ventures to add value to minerals in both regions.
- Doubling Trade: Shri Goyal set a goal to double India-Africa trade within the next seven years, emphasizing the untapped potential for increased trade. He urged 33 African countries to participate in India’s Duty-Free Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs) to boost trade relations.
- Technology-Driven Partnership: The Minister highlighted the potential for a technology-driven partnership, particularly in the IT sector. He advocated for the use of India’s Digital Public Infrastructure to drive technology penetration in Africa, enhancing financial inclusion, transparency, and job creation.
- Sectoral Cooperation: Shri Goyal emphasized the alignment of India’s strengths in agriculture, pharmaceuticals, textiles, automobiles, and renewable energy with Africa’s development needs. He also mentioned the potential for collaboration in the entertainment sector, citing the global popularity of African artists engaging with Bollywood.
- MSME and Startups: Recognizing the importance of the MSME sector, Shri Goyal called for enhanced cooperation to create jobs, support MSMEs, and foster entrepreneurship. He encouraged stronger relations between MSMEs in India and Africa and highlighted the potential for collaboration between startup ecosystems in both regions.
- Food Security and Agriculture: Addressing food security, Shri Goyal proposed collaboration in Africa’s agricultural sector, particularly in plantation sectors for oilseeds, pulses, and other crops, to meet India’s growing demand.
- South-South Cooperation: Shri Goyal echoed Prime Minister Modi’s vision of strengthening South-South cooperation, emphasizing the importance of bringing the African Union (AU) into the G20 as a full member and raising African issues in global forums.
Significance:
- Strategic Partnership: The collaboration between India and Africa in critical minerals and other sectors is crucial for India’s growth, especially in the context of transitioning to renewable energy and achieving net zero emissions. Africa’s mineral resources are vital for India’s EV sector and other industries, offering a sustainable path for economic growth.
- Economic Growth: Doubling trade between India and Africa over the next seven years will significantly boost economic growth in both regions. The emphasis on equitable trade ensures that both regions benefit from this increased exchange.
- Technology and Innovation: The technology-driven partnership between India and Africa, particularly in the IT sector, holds the potential to revolutionize financial inclusion, transparency, and job creation across Africa, contributing to the continent’s economic and social development.
- MSME and Entrepreneurship: Enhanced cooperation in the MSME sector will create jobs, foster entrepreneurship, and support the growth of small and medium enterprises in both regions, driving inclusive growth.
- Global South Leadership: Shri Goyal’s emphasis on South-South cooperation and India’s efforts to bring the African Union into the G20 reflect a commitment to strengthening global leadership from the Global South, promoting mutual development and prosperity.
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