EXPORTING TO AFRICA, Deepak Joshi [reader novel .TXT] 📗

Reshaping Business.

 

 

India Africa Trade Agreement

India Angola Trade Agreement India Cameroon Trade Agreement India Ghana Trade Agreement India Mauritius Trade Agreement India Nigeria Trade Agreement India Senegal Trade Agreement India Swaziland Trade Agreement India Tanzania Trade Agreement India Zaire Trade Agreement India Zimbabwe Trade Agreement India Botswana Trade Agreement India Cote D Ivory Trade Agreement India Liberia Trade Agreement India Mozambique Trade Agreement India Rwanda Trade Agreement India South Africa Trade Agreement India Sychelles Trade Agreement India Uganda Trade Agreement India Zambia Trade Agreement

 

 

 

 

 

 

 

India’s partnership with Africa based on a consultative model of cooperation, non-prescriptive, participative, and responsive to the needs of the African countries, witnessed an increase in bilateral trade of nearly 24% from the last year. Ranking as the third largest export destination in Africa, India-Africa trade has touched $ 62.66 billion for 2019-20.

 

The Duty Free Tariff Preference (DFTP) Scheme announced by the government for Least Developed Countries (LDCs) has immensely benefited African nations and contributed towards steady increase in the trade figures by extending duty-free access to 98.2 % of India’s total tariff lines. So far, 38 African countries enjoy the benefits of the DFTP Scheme.

 

Africa is a top priority for India’s foreign and economic policy and there has been a qualitative shift in country’s longstanding ties. Prime Minister of INDIA had recently articulated Africa policy in 10 broad principles emphasizing that India’s partnership with Africa will be driven by the aim of empowerment, access to Indian market, sharing of experience in the agriculture sector and support for Indian investments in Africa.”

PREFACE

Using descriptive statistical analysis, this book examines trade and investment opportunities between India and 41 African economies (mostly LDCs) by focusing on the latter’s export opportunities in the Indian market and on India’s EXPORTING opportunities in the selected countries. It also discusses barriers to realizing the identified trade and business opportunities between India and the selected countries, based on a review of the existing market scenario. This book has also undertaken a quadrant analysis to identify the products and services where the selected countries still have low shares in Indian imports despite a revealed comparative advantage in exporting to this market ….

 

The importance of least developed countries (LDCs) has been growing in India’s trade and investment flows over time. In fact, India has been strongly promoting trade linkages with LDCs, particularly those in Africa.

 

This book, explains not only rising trade flows from India to Africa in the decade of the 2000s, but also growing export business. While Africa is all set to emerge as a big investment partner for India, the book also mentions potential hindrances that can affect this rising trend.

 

Thank you..

 

 

 

Deepak Joshi

Ahmedabad.

ABOUT AFRICAN MARKETS.

 

 

 

 

Africa is no longer considered a “hopeless continent” as suggested by the Economist a decade ago, rather it possesses all the prerequisites to become a major growth pole of the world.

 

Export potentiality of Indian products in Africa...

 

India’s rapport with Africa is highly distinguished and unique. India-Africa relationship has been built upon deep bond of friendship and mutual faith beyond strategic ties. Apart from sharing one-third of the world population, both nations enjoy the favorable phase of the demographic dividend and rising per capita income.

 

India is Africa’s 4th largest trading partner, with a trade of USD 51 billion in 2017-18 which grew from USD 5.25 billion in 2001-02. India majorly imports commodities and exports manufactured products. Indian exports to Africa jumped to USD 24 billion in 2017-18, against USD 2.8 billion in 2001-01. Similarly, India’s imports from Africa rose to USD 27 billion in 2017 from USD 2.5 billion in 2010=11. More than one-third of the imports in Africa are Consumer goods, followed by capital goods (27.2%), intermediate goods (23.8%), and raw materials (11.9%) in 2015. In case of imports from India, Africa has revealed its demand in favour of consumer goods (63%), followed by Intermediate goods (19.5%), capital goods (14.6%), and raw materials (3.5%). Notably, the share of consumer goods in imports from India rose sharply from 50.2% in 2018 to 62.4% in 2019.

 

Africa is the second - largest continent in the world both in size and population. Also, it homes to over 1500 languages.

 

India is the fastest running economy in the world at 7.6% in 2016-17, as per the estimates of IMF.

 

 

 

EXPORT FROM INDIA

 

 

India-Africa bilateral trade carries a variety of export opportunities for both the countries. India’s partnership with Africa based on a consultative model of cooperation, participative, non-prescriptive and responsive to the requirements of the African countries, witnessed a rise in bilateral trade of nearly 22% from the last year. India-Africa trade has touched US$ 62.66 billion for 2017-18. India’s exports to Africa amounted to US$ 26 billion in 2018, which saw a drastic decline from the last five years. Through this article, learn India’s exports to African countries statistics on top trading commodities and partners with special focus on India Africa trade 2018. 

 

Between India and Africa, there is a tight commercial connection which works for the benefit of both. There are a variety of export opportunities from India to Africa, and the trading market keeps developing. IMF (The International Monetary Fund) stated that the value of goods imported in Africa from India almost doubles in the past five years. And Indian economy is highly relying on the exports the country does to Africa which can be of many different types of goods.

Africa’s economy is growing slowly but surely, and India knows how to take advantage of the new trading opportunities available on the market. To develop the commercial relationship between India and Africa, the Indian government launched the programme “Focus: Africa” which boosted the trading market. Initially, the program included countries like Kenya, Ethiopia or Mauritius but in time it was expanded to many other African regions.

Since Africa is the second largest continent with millions of citizens, the demand is always high on the local market. Most of the African economy relies on imports and exports of different goods to satisfy the large population and this type of international trading also help the local development of the countries in Africa.

 

 

 

 

 

Main Products Exported To Africa are Pharmaceutical Products , Iron and Steel, Automobiles, Car, Textiles and Different Clothes, Food Grains  Plastic Products and many more to add. 

 

Indian government struggles to develop new paths of import-export business between India and different African countries for years and finally starting with 2015, important results are seen. A profitable collaboration between the two would impact not only local economies but also their effects on the international trading market. And India has the potential to become an even better exporter than China or other Asian regions if the changes are done correctly. Both Africa and India have valuable and affordable working force as well as a large number of citizens in need of jobs. It increases the potential of both markets on the import-export process but also the power of production which is mandatory for such trades.

 

                           Major export sources in Africa (for top imported products)

                                                                   (2017-18 V/S 2018-19 )

COUNTRY

VALUE IN 2019 USD BILLION

SHARE %

GROWTH %

CHINA

77.33

18.91

8.22

FRANCE

32.95

8.09

27.39

USA

22.22

5.45

12.70

GERMANY

25.10

7.53

7.55

INDIA

22.51

6.63

19.83

 

 

                                                India’s Major Export Commodities to Africa

 

BARRIERS FACED BY INDIAN EXPORTERS IN AFRICA

 

 

 

 

                                                                        BARRIERS FACED BY INDIAN EXPORTERS IN AFRICA

Problem #1       High Government Control

One of the biggest problems faced by the Indian export sector is the high restrictions that the government has put on the trade. Not just the Indian government, but also the government of countries with which you are trying to make trade. A number of licenses and permissions need to be taken by both the countries that create confusion in the mind of the traders who refrain from making export due to this.

Problem #2    Inconsistent Trade Policies

The Indian trade policies are not on the same pace with the international trade policies or requirements. The international traders see India as