India-Africa Trade Relations

India and Africa have experienced a revival in recent years, and there are strong reasons for optimism that the partnership could be mutually beneficial. With cumulative investments at $73.9 billion from 1996-2021, India is among the top five investors in the African region. India's bilateral trade with Africa has now reached $89.5 billion in 2021- 22 compared with $56 billion the previous year. Notably, through the Duty-Free Tariff Preference (DFTP) Scheme that extends duty-free access to 98.2 percent of India's total tariff lines, India has opened its market to African countries. So far 33 LDC African nations have been entitled to get benefits under this scheme.

Building on a growing trade and investment portfolio, India now has a strategy with clear guiding principles and areas of focus. The private sector is key to this strategy, particularly in the areas of skill and capacity-building initiatives, education, health care, medical value travel, and IT & ITES. Moreover, underpinning the seriousness of India’s Africa policy shift, the country has made maritime security a key pillar in most of its engagement with countries like Kenya and South Africa.

Experts anticipate that the African Continental Free Trade Agreement (AfCFTA), which is already operational, to boost the levels of trade and investment, development of value chains, and industrialization across the African region.