evolving india–africa relations: continuity and change · please consult our website for further...

South African Instit

ute of Inte

rnat

iona

l Affa

irs

African perspectives. Global insights.

Emerging Powers and Global Challenges Programme

O C C A S I O N A L P A P E R N O 7 6

Evolving India–Africa Relations: Continuity and Change

F e b r u a r y 2 0 1 1

R u c h i t a B e r i

A b o u t S A I I A

The South African Institute of International Affairs (SAIIA) has a long and proud record

as South Africa’s premier research institute on international issues. It is an independent,

non-government think-tank whose key strategic objectives are to make effective input into

public policy, and to encourage wider and more informed debate on international affairs

with particular emphasis on African issues and concerns. It is both a centre for research

excellence and a home for stimulating public engagement. SAIIA’s occasional papers

present topical, incisive analyses, offering a variety of perspectives on key policy issues in

Africa and beyond. Core public policy research themes covered by SAIIA include good

governance and democracy; economic policymaking; international security and peace;

and new global challenges such as food security, global governance reform and the

environment. Please consult our website www.saiia.org.za for further information about

SAIIA’s work.

A b o u t t h e e M e R G I N G P o W e R S A N d G l o b A l c h A l l e N G e S P R o G R A M M e

The global system has undergone significant changes in the past two decades since the

collapse of the Berlin Wall. While advanced industrial powers such as the US, Europe and

Japan are still the driving forces of global policymaking, there is now a shift to non-polarity,

interpolarity or multipolarity. Global interdependence has made international co-operation

an inescapable reality and emerging powers such as Brazil, Russia, India, and China (BRIC)

cannot be ignored in global governance processes. This new paradigm touches on a

range of global challenges such as security, the G20, climate change and energy security.

SAIIA’s Emerging Powers and Global Challenges Programme has a two-pronged

focus. The first is regional or country-specific looking at the engagement between the BRIC

countries and key African states. The second critically evaluates the responses of emerging

powers to global governance challenges, assessing the extent to which they are prepared

to shoulder responsibility. This intersection or the balance between norms and interests and

its implications for South Africa and Africa is an important feature of SAIIA’s research.

The Emerging Powers and Global Challenges project entitled ‘Africa and the Geopolitics

of India’s Energy Security’ was funded by the Konrad Adenauer Stiftung and the Royal

Norwegian Ministry of Foreign Affairs. SAIIA gratefully acknowledges this support.

Programme head: Mzukisi Qobo [email protected]

© SAIIA February 2011

All rights are reserved. No part of this publication may be reproduced or utilised in any form by any

means, electronic or mechanical, including photocopying and recording, or by any information or

storage and retrieval system, without permission in writing from the publisher. Opinions expressed are

the responsibility of the individual authors and not of SAIIA.

Please note that all currencies are in US$ unless otherwise indicated.

A b S t R A c t

India’s relations with African countries are time-tested and historical; nevertheless, in recent

years the affiliation has been revitalised. Both continuity and change feature in India’s

evolving relations with Africa. India’s engagement with Africa is not only directed towards

aiding India’s energy strategy, but has broader goals. Indeed, India’s foray into Africa may

be seen as a continuation of the past trend of supporting weaker allies. The trends in trade,

the diverse investment profile, as well as various initiatives to augment technical assistance,

training and capacity building in Africa, suggest a strategy that has married components

of the earlier idealistic policy with strands of pragmatism.

A b o u t t h e A u t h o R

Ruchita Beri is a senior research associate at the Institute for Defence Studies and Analyses,

New Delhi, specialising in political and security issues of sub-Saharan Africa. Her current

research focus is Redefining India-Africa relations. She is vice-president of the African

Studies Association of India and an alumna of the Women in International Security, US.

She has lectured at the National Defence College and the College of Naval Warfare and

participated in various international conferences. She co-edited the book Africa and Energy

Security and has contributed journal articles and book chapters to over 75 publications.

She has an M.Phil in African Studies from Jawaharlal Nehru University, New Delhi and a

diploma in Conflict Studies from the Department of Peace and Conflict Research, Uppsala

University, Sweden.

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S A I I A O C C A S I O N A L P A P E R N U M B E R 76

E M E R G I N G P O w E R S A N d G L O B A L C h A L L E N G E S P R O G R A M M E

A b b R e v I A t I o N S A N d A c R o N y M S

DRC DemocraticRepublicofCongo

EXIM Export–ImportBankofIndia

ICC InternationalCriminalCourt

ICT informationandcommunicationtechnology

IT informationtechnology

ITEC IndianTechnicalandEconomicCooperation

LOC LineofCredit

NAM Non-AlignedMovement

TEAM-9 Techno-EconomicApproachforAfrica–IndiaMovement

UNSC UnitedNationsSecurityCouncil

E v O L v I N G I N d I A – A f R I C A R E L A t I O N S : C O N t I N U I t y A N d C h A N G E

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I N t R o d u c t I o N

Forthelastdecade,Africa,acontinentthattheindustrialisedNorthhastraditionally

regardedassittingonthemarginsoftheinternationalpoliticaleconomy,hasbeen

inthelimelightduetoitsincreasingtieswithIndiaandChina–Asia’semergingpowers.

IndiaandChina’srolesinAfricahavereceivedconsiderablescholarlyattentioninthe

recentyears.However,mostof thewritingshaveclubbedChinaandIndia together,

suggestingtheriseofan‘Asiandriver’or‘ChindiainAfrica’.Yet,Indiahasdeephistorical

andculturaltieswiththecountriesinAfrica,andtodayAfricaisanimportantaspectof

India’sforeignpolicy.ContinuityandchangeareafeatureofIndia’sevolvingrelationswith

Africa,whichareshapedbyemergingtradepatternsandenergyresources.

P A S t A N d P R e S e N t t I e S

Historically, themaintenetof India’sAfricapolicyhasbeensupport for thestruggle

againstdecolonisationandracialdiscriminationinSouthAfrica.Thisstemmedfromthe

leadershiproleagainstimperialism,colonialism,racismandhegemonyplayedbyIndia’s

charismaticfirstPrimeMinister,JawaharlalNehru.Nehru’sviewsmirroredtheaspirations

ofnewlyindependentcountriesinAsiaandAfrica,andhewasheavilyinvolvedinthe

BandungAfro–Asianconferencein1955.Later,Nehruandotherimportantleadersof

thedevelopingworld,suchasPresidentJosipTitoofYugoslavia,PresidentGamelNasser

ofEgyptandPresidentNkrumahofGhana,wereinstrumentalintheformationofNon-

AlignedMovement(NAM).NAMisamovementwhoseaimistosupportindependence

frompowerblocksandreflectthevoiceofthedevelopingorthirdworld.Thus,ideological

andpoliticalissuesguidedIndia’srelationswithAfrica.Later,inthe1960sand1970s,

economicissues,commondevelopmentchallengesandneedforaNewInternational

EconomicOrderbroughtIndiaclosertothecountriesinAfrica.However,theconcept

ofSouth–Southco-operationespousedbybothIndiaandAfricancountriesatvarious

internationalforumsremainednotional,andtheleveloftraderemainedquitelow.

Inthepost-ColdWarera,withNamibia’sdecolonisationandtheendofApartheidrule

inSouthAfrica,themainpoliticalandideologicalagendathathadbroughtAfricansand

Indianstogether,vanished.Thesharedideologiesofnon-alignmentanddisarmament–

althoughstilladvocated–werenolongertherallyingpointsofinteraction.Moreover,after

thestartofeconomicliberalisationreformsin1991,India’sforeignpolicymovedaway

frombeingdrivenbyideologicalprinciplestobecomeincreasinglypragmatic.Fromthis

time,IndiahasusedeconomicdiplomacyasamethodofwooingtheAfricancountries.

In1993,theIndiangovernmentstatedthat,‘inthefuture,newrelationshipsbasedon

concreteeconomic,technologicalandeducationalco-operationwillassumeenhanced

significance.’1 And Manmohan Singh, the current Indian prime minister, has often

pointedouttheneedtoimproverelationswithmajorpowersonthebasisofeconomic

co-operation.2

Atthesametime,IndianpolicymakersemphasisethattheorientationofIndia’sforeign

policyisdesignedtopromote‘enlightenednationalinterest’.3Expertsandofficialshave

claimedthatenergysecurityisanimportantelementofIndia’sforeignpolicy,particularly

inthecontextofthedevelopingworld.InManmohanSingh’swords‘Ourconcernfor

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energysecurityhasbecomeanimportantelementofourdiplomacyandisshapingour

relationswitharangeofcountriesacrosstheglobe,inWestAsia,CentralAsia,Africaand

LatinAmerica’.4However,itshouldbepointedoutthatIndia’sobjectivesindevelopment

ofthispolicyhaveremainedthesameovertheyears:‘[the]creationandconsolidation

ofstrongeconomicbondsamongcountriesoftheSouthandtheuseofIndia’srelative

economicstrengthfordevelopmentofthesecountriesonmutuallybeneficialbasis’.5

Inrecentyears,animportantpolicyshiftisthatIndiaisengagingwithAfricansata

bilateralandregionallevel.Thecountryhasopeneddialoguewiththeregionaleconomic

communitiesandhasacquiredobserverstatusinanumberofregionalorganisationsin

AfricasuchastheCommonMarketforEasternandSouthernAfrica,theSouthernAfrican

DevelopmentCommunityandtheEconomicCommunityofWestAfricanStates.Atthe

sametime,in2008,IndiainstitutionalisedtherelationshipwithAfricabyorganisingthe

India–AfricaForumSummit.India’ssearchforalternativesourcesofenergyanditsdesire

toreducedependenceonoilimportsfromWestAsia,haveundoubtedlyenergisedIndia’s

relationswithAfrica.However,statisticsandcertaininitiativeslaunchedbytheIndian

governmentsuggestthatIndia’srelationswithAfricaarebroad-based.Theco-operation

frameworkadoptedattheIndia–AfricaForumSummitoutlinesthepriorityareasoffuture

co-operation,whichrangefromcapacitybuilding,agriculturalinfrastructuredevelopment,

heathand foodsecurity,energysecurityandtechnologicalco-operation.The ideaof

co-operationatcontinentallevelisguidedbyacommitmenttodeepentheprocessof

AfricanintegrationandrecognisesthediversitieswithinvariousregionsofAfrica.The

trendsintrade,thediverseinvestmentprofileandvariousinitiativestoaugmenttechnical

assistance,trainingandcapacitybuildinginAfricasuggestastrategythathasmarried

componentsoftheearlieridealisticpolicywithstrandsofpragmatism.Thisstrategyaims

tostrikeabalancebetweenIndia’sgrowingcommercialandstrategicinterestsinAfrica

anditstraditionalpolicyofempoweringAfrica.

t R A d e

RecenttradetrendsrevealIndia’sgrowingsynergywithAfrica.6Bilateraltradeincreased

from$967millionin1990–91to$39billionin2008–09,whileIndia’sexportstoAfrica

grewfrom$394millionin1990–91to$14.6billionin2008–09.Asaresult,in2008–09

Africarepresented8%ofIndia’stotalexports,upfrom2.2%in1990.Similarly,India’s

importsfromAfricarosefrom$573millionin1990–91to$24.3billionin2008–09,

or8.4%ofIndia’stotal imports,upfrom2.4%in1990–91.In2008–09,SouthAfrica

remainedthe leadingdestination for India’sexports toAfrica,accounting for13.5%.

OthermajorexportdestinationsincludedEgypt(11.2%),Nigeria(10.3%),Kenya(9.1%),

Tanzania(7%),Mauritius(6.5%)andAlgeria(4.5%).Around35.8%ofIndia’simports

fromAfricaweresourcedfromNigeriain2008–09,reflectingthesignificantimportsof

crudepetroleumfromthatcountry.SouthAfricaisthesecond-largestimportsourcewith

ashareof22.4%,followedbyEgypt(8.7%),Angola(5.6%),Algeria(4%)andMorocco

(3.8%)during2008–09.

PetroleumproductshavebecomethelargestitemsinIndia’sexportbasketintherecent

years.Otherimportantitemsincludetransportequipment,machineryandinstruments,

pharmaceuticals, non-basmati rice, manufactures of metals, cotton-yarn fabrics and


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made-ups,aswellasprimaryandsemi-finishedironandsteelproducts.Crudepetroleum

accountedforasignificant58.6%ofIndia’stotalimportsfromAfricaduring2008–09.

OthermajoritemsimportedfromAfricaincludegold,inorganicchemicals,metalliferrous

oresandmetalscrap,andcashewnuts.

IndiahastakenseveralstepstoenhancetradeandinvestmentinAfrica,includingthe

FocusAfricaProgrammeandtheTechno-EconomicApproachforAfrica–IndiaMovement

(TEAM-9)initiatives.Launchedin2002,theFocusAfricaProgrammeinitiallyfocusedon

sub-SaharanAfrica,withemphasisonsevenmajortradingpartnersintheregion:Ethiopia,

Tanzania,Nigeria,SouthAfrica,Mauritius,KenyaandGhana.Togetherthesecountries

accountfor69%ofIndia’stradeinsub-SaharanAfrica.Theprogrammebroadenedin2003

toadd17othercountries,includingsomefromNorthAfrica.TheTEAM-9initiativewas

launchedin2003asaspecialco-operationmodelbetweeneightWestAfricancountries

andIndia.Atthesametime,Indianchambersofindustry,particularlytheConfederation

of Indian Industry, inpartnershipwith the Indiangovernment,Export–ImportBank

ofIndia(EXIM)andtheAfricanDevelopmentBankinitiatedtheIndia–Africaproject

partnershipconclaves.Since2005,fourconclaveshavetakenplaceinNewDelhi,along

with mini-conclaves in Africa. These conclaves serve as a meeting ground between

decisionmakersandindustrialistsfromAfricancountriesandheadsofIndiancompanies

involvedinvariousprojectsinAfrica.ThelatestconclavewasheldinNewDelhiin2010.

Thisconclaveattracted606Africandelegatesfrom33countries,andapproximately152

projects,tothetotalvalueof$10.5billionwerenegotiatedatthemeeting.

InApril2008,atthefirstIndia–AfricaForum,IndianPrimeMinisterManmohanSingh

announcedanumberofinitiativesthatincludedaduty-freetradepreferenceschemefor

34Africancountries,aswellasgrantsforprojectsinexcessof$500millionoverthenext

fivetosixyearsintheareasofrailways,informationtechnology(IT),telecommunications

andpower.IndiaalsoofferedtodoubletheLinesofCredit(LOCs)extendedtoAfrican

nationsfromthecurrent$2.15billionto$5.4billionovernextfiveyears.Inaddition,

Africanstudentsbenefitedfromtheforum,asIndiapledgedtodoublethenumberof

availablescholarships.

I N d I A ’ S I N v e S t M e N t I N A f R I c A

OutwardforeigndirectinvestmentfromIndiahasincreasedmassivelyinrecentyears,

from$556millionin1997to$18.43billionin2007–08.AccordingtodatafromIndia’s

MinistryofFinance,approvedcumulativeinvestmentsinAfricabetweenApril1996and

December2007amountedto$5.7billion.

ManyIndiancompanieshaveinvestedinAfricainrecentyears,andIndiaappears

toviewAfricaasapossiblesourceofrawmaterialandenergysourcestosupport its

industrialgrowth.Thisisnotsurprising,asenergysecurityisoneofthemajorsecurity

challengesfacingIndiatoday.Currently,Indiaisthefifthlargestconsumerofenergyinthe

worldandisexpectedtobecomethethirdlargestby2020.India’sgrowingenergyneeds

havepushedittowardsenergyco-operationwiththeAfricancountriesand,giventhe

stagnantoilreservesinthecountry,Indianoilcompaniesareactivelylookingtoacquire

overseasassets.Currently,around18%ofIndia’scrudeoilimportsaresourcedfromAfrica

(includingtheNorthAfricancountries).Indiannationaloilcompanies,suchastheOil

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andNaturalGasCorporationVideshLimited,haveinvestedinequityassetsinSudan,

IvoryCoastLibya,Egypt,Nigeria,Nigeria–SãoToméandPríncipeJointDevelopment

AreaandGabon.7PrivatesectorcompanieslikeReliancehavealsoinvestedinequityoil

inSudan,whileEssarhasprocuredexplorationandproductionblocksinMadagascarand

Nigeria.Indiarecentlycompleteda$200millionprojecttolayapipelinefromKhartoum

toPortSudanintheRedSea.In2007and2009,theIndianMinistryofPetroleumand

NaturalGasandchambersofcommerce,suchastheFederationofIndianIndustryand

Commerce,joinedhandstoorganisetheIndia–AfricaHydrocarbonsConferences,inorder

toboostIndia’sinvestmentinAfrica’senergysector.

Indiaisclearlyseekingarobust,mutuallybeneficialpartnershipthatwillprovide

IndiawithenergysecurityandbenefitAfricathrough‘sharingourexperience,capacity

andtechnologyintheenergysector…buildinglocalcapacitiesandensuringtechnology

transfer.’8Duringthe2009India–AfricaHydrocarbonsConference,Indiaidentifiedfive

mainareasofco-operationwithAfricancountries:buyingmorecrudeoilfromAfrica,

investingmoreinupstreamopportunitiesonbilateralbasis,exploringopportunitiesto

sourcemoreliquefiednaturalgasfromAfrica,makingavailableIndia’sskills,talentand

technologyincost-effectivewaysforthebenefitofAfricaandsupportingcommunity

developmentprogrammesinAfricasoastoensureinclusivegrowth.9

HydrocarbonsarenottheonlynaturalresourcebeingsoughtbyIndiancompanies.

ThemetalsconglomerateVedantaResourceshasinvestedmorethan$750millionin

Zambiancoppermines,andrecentlytheParliamentofLiberiaratifieda25-yeardeal

allowingArcelorMittal to launcha$1billionironoreminingproject.TataSteelhas

invested$850millioninaferro-chromeprojectinRichardsBay,SouthAfrica.10In2007

theIndianFarmersFertilizerCooperativesignedaMemorandumofUnderstandingwith

theSenegalesegovernmenttoreviveaphosphoricacidplantbelongingtoIndustries

ChimiquesdeSenegal.11

Indian investments are found in a wide array of economic sectors, including

agriculture. Indiancompanies suchas theKirloskarBrothersandWaterandPower

ConsultancyservicesarealreadyinvolvedinwatermanagementprojectsacrossAfrica.

TractormanufacturersMahindraandInternationalTractorshavemadeamark,while

corporatehouseslikeDarburandTataCoffeehavealsoventuredintotheagriculture

sectorinAfrica.AsthemajorityofAfricancountriesarelookingforwaystoenhance

theirfoodsecuritybyreplicatingtheIndian‘greenrevolutionmodel’,furtherareasof

collaborationcouldincludeprovidingagriculturalinputs,agro-processingandwatershed

management.

TheIndiancompaniesarealsopresentinAfrica’ssecondaryandtertiaryindustries.

TheIndianmultinational,theTataGroup,isrepresentedintheengineering,chemicals,

servicesandinformationandcommunicationtechnology(ICT)sectors.Inthepower

sector Indian companies, such asBharatHeavyElectricalsLimited,MohanEnergy,

KalpataruTransmissionandJyotiStructures,haveenteredthemarketstrongly,andSuzlon

Energy, theworld’s fourth-largestwindturbinemaker,plansto invest intheAfrican

alternativeenergysectorinthenearfuture.IntheITsector,theNationalInstituteof

InformationTechnology,TataConsultancyServices,SatyamandInfosyshaveentered

theAfricanmarkets.RelianceIndustrieshasastrongpresenceintelecommunications,a

sectorinwhichothercompanies,suchasBhartiAirtelLimitedandVideshSancharNigam

Limited,haveshownstronginterest.BhartiAirtelLimitedrecentlyacquiredtheAfrica


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assetsofZain,theKuwaitimobilecommunicationscompany.12Intheautomobilesector,

IndiancompanieslikeMahindraandTataarestronglyrepresented,withMahindrapresent

in several SouthernAfricancountries includingSouthAfrica,Zimbabwe,Botswana,

Namibia,SwazilandandZambia.13Similarly,majorpharmaceuticalcompanies(Ranbaxy,

CiplaandDrReddy’s),consumerproductsfirms(EmamiandMarico),constructionfirms

(PunjLloydandShahpoorjiPallonji)haveinvestedinAfricancountries.

Indiancompanieshavealsoenteredthefinancialandbusinesssector,withtheState

BankofIndiaacquiringa51%stakeintheIndianOverseasInternationalBank.However,

IndiancorporatesarenotnewtoAfricaand,insomecases,havebeenpresentinAfricafor

averylongtime.Forexample,theTataGrouphasbeenoperatinginAfricaformorethan

sixdecadesandispresentinmorethan11Africancountries.14

t e c h N I c A l c o - o P e R A t I o N A N d t R A I N I N G

Indiahasoftenemphasisedthatitsmodelofco-operationwithAfricaseeksmutualbenefit

throughaconsultativeprocess.AnotherelementoftherelationshipisIndia’sdesireto

shareitsknowledgeandexperienceandskillswithcountriesinAfrica.Assistanceto

AfricancountriesfallsundertwoCommonwealthinitiatives:theIndianTechnicaland

EconomicCooperation(ITEC)programme,whichlaunchedin1964,andtheSpecial

CommonwealthAfricaAssistancePlan.Indiaspendsabout$12millionannuallyonITEC

activities.15

RecognisingmostAfricancountries’focusoncapacitybuildingandhumanresources

development, the continent is the largest recipient of India’s technical co-operation

programme.Thisassistanceincludestraining,deputationofexpertsandimplementation

ofprojectsinAfricancountries.ITEC’sfastest-growingsegmentisconsultancyandproject

assistance,whichincludespreparingfeasibilitystudiesandprojectreports,settinguppilot

projectsandresearchcentresintheagriculturalsector.AnumberofAfricancountries

havereceivedassistanceinthisarea.Projectassistance,whichaccountsfor40%ofthe

annualITECprogrammebudget,allowsIndiatodemonstratetheskills,technologiesand

humanresourcecapacitiesacquiredinthecourseofitsowndevelopment.Themajor

focusofprojectassistancetoAfricaisagriculture,andITEChasprovidedGhana,Senegal,

BurkinaFasoandMaliwithequipmentandexpertiseforagriculturaluse.

Otherimportantareasofco-operationunderITECarevocationaltraininginsmall-

scaleindustriesandentrepreneurshipdevelopment,asseeninSenegal,Zimbabweand,

beyondAfrica,inVietnamandMongolia.Suchtrainingenablesyoungpeopletogain

usefulemploymentinsmall-sizefactoriesatcomparativelylowlevelsofcapitalintensity.16

TherationalebehindtrainingyoungAfricanmenandwomenisthatIndia’sstrengthisits

expertiseindifferentsectorsoftheknowledgeeconomy.AstheITECdivisionexplains

‘Indiaisnotarichcountryandcannotoffergrants-in-aidtomatchthoseofthedeveloped

countries.Itdoes,however,possessskillsofmanpowerandtechnologymoreappropriate

tothegeographicalandecologicalconditionsandthestageoftechnologicaldevelopment

of severaldevelopingcountries.’17At thesame time, someIndiannon-governmental

organisationshavefocusedontrainingelderlywomeninAfrica.TheBarefootCollege

ofTilonia,anon-governmentalorganisationinRajasthan,hasbeeninvolvedintraining

illiterateandsemi-literatemothersandgrandmothersin15countriesinAfrica,whichhas

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resultedinnearly110ruralgrandmothersinstallingsolarelectricityin5 500remoterural

housesinAfrica.18

Humanresourcedevelopmentandcapacitybuildinghavebeenintheforefrontof

India’spartnershipwithAfrica.Annually,over1600officialsfromsub-SaharanAfrica

receive training in Indiaunder the ITECprogrammeandmore than15 000African

studentsstudyinIndia,whileIndianengineers,doctors,accountantsandteachersare

presentacrossAfrica.

Thispartnershipinhumanresourcedevelopmenthasbeenaugmentedbythetele-

educationcomponentofthePan-Africane-networkproject,whichseekstobridgethe

digitaldividebetweenIndiaand53countriesinAfricathroughtele-medicineandtele-

education.Atpresent,23countriesarepartofthisambitiousinitiative,whichfocuses

onempoweringthepeopleofAfricathroughICT.Thee-networkhasmorethan1 700

AfricanstudentsregisteredwithIndianuniversities,andregulartele-medicalconsultations

betweendoctorsinIndiaandAfricahavebegun.

Another step towards empowering Africans is India’s decision to establish 19

institutionsinAfrica.IntheJointActionPlanreleasedrecently,Indiaproposesestablishing

four India–Africa institutes indiverse fields such as ICT, foreign trade, educational

planningandadministrationandthediamondtrade.Inaddition,10vocationaltraining

centresandfivehumansettlementinstitutesarealsoplanned.19

c A P A c I t y b u I l d I N G

Notably,theIndia–Africaengagementhastransitedfrommere‘commoditytradingties’to

aneconomicpartnership,wheregovernmentandindustryfinanceandinvestincapacity

buildinginAfrica.EXIMhassupportedIndiancompaniesthatimplementinfrastructure

projectsinAfrica,whichinclude:atransmissionsystemrehabilitationandmaintenance

project inZambia;a turnkeycontract formulti-productpipelineproject inSudan;a

consultancyassignmentinasmall-town,watersupplyprojectinNigeria;suppliesfor

anurbanpowerrehabilitationprojectinUganda;transmissionlineprojectsinAlgeria,

Tunisia;andtheconstructionofcybertowers20inMauritius.

EXIMalsoextendsLOCstoinstitutionsandagenciesinAfricaandcurrentlyhas77

LOCsamountingtoover$2.5billioninmorethan48countries.21TheseLOCsfacilitate

theimportofproject-relatedequipmentandservicesfromIndiaondeferredcreditterms,

withmanybeingearmarkedforinfrastructureandrelatedprojects.Forinstance,India

isinvolvedinarailwayrehabilitationprojectandtheacquisitionoftractorsfromIndia

inAngola,andengagedinagriculturalprojects,includingthesupplyandinstallationof

agriculturalmachineryinBurkinaFaso,Ghana,Côted’Ivoire,Chad,SenegalandGambia.

InMauritius,IndiaispartoftheBaieduTombeausewerageconstructionproject.India

isparticipatinginenergytransmissionanddistributionprojectsinEthiopiaandRwanda

andruralelectrificationinMaliandMozambique.IndianLOCsarebeingusedtosetup

cementplantsinDjiboutiandtheDemocraticRepublicofCongo(DRC)andtorehabilitate

amanganesemineandacquireequipmentintheDRC.Indiaisalsoinvolvedinirrigation

projectsinSenegalandLesothoandahousingprojectinGabon.


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A f R I c A I N I N d I A ’ S f o R e I G N P o l I c y

Theheretomentionedsuggests thateconomic factorshaveplayedan importantand

increasingroleinthegrowthofIndia–Africarelationsoverthepastdecade.However,

severalotherfactorsincludingIndia’senergydeficit,itsambitiontoattainapositionin

thereformedUnitedNationsSecurityCouncil(UNSC),risinginsecurityinthewestern

IndianoceanregionandtheIndiandiasporahaveshapedAfrica’sgrowingimportancein

India’sforeignpolicy.

TherelativeriseofIndiaintheinternationalsystemisoneofthemostimportant

developmentsinrecentyears.Afterdecadesofpursuinganinward-lookingeconomic

policy,Indialaunchedeconomicreformsin1991.Withinadecadeoftheseeconomic

reforms,Indiaemergedasthefourthlargesteconomyintheworldintermsofpurchasing

powerparity.AstheNationalIntelligenceCouncilintheUSnotedrecently,by2020India

willbegintoovertakealltheWesternnations,excepttheUS,intermsofeconomicsize.22

GoldmanSachsbelievesthatIndiawillovertaketheUSby2050.23Thisrapideconomic

growthhaspositionedIndiatobecomeamajorplayerintheinternationalsystem.To

sustainthehigheconomicgrowthrateof9%witnessed inrecentyears, Indiahas to

increasedrasticallyitsenergysupplies.

IndiahastraditionallyreliedonWestAsiaformostofitsoilneeds,buttheregion’s

volatilityinrecentyearshasnecessitatedthesourcingofalternativesuppliesfromAfrican

countries.ThescrambleforresourcesinAfricadatesfromthelate1990s,whentheoil

industrydesignatedsub-SaharanAfricaasoneoftheworld’s‘hotspots’.India’sgrowing

energyneedshavenodoubtpromptedenergyco-operationwiththeAfricancountries.

However,itshouldberememberedthatIndiaisthefourthlargestglobalconsumerof

crudeoil,consumingover2.8millionbarrelsperday,andin2008–2009importedcrude

worth$75billion.Therefore,whilecrudepetroleummaynowbeamajorimportfrom

Africa,oilimportsfromAfricaconstituteonlyafractionofIndia’soilimportbill—as

mentionedearlier, Indiacurrentlysourcesaround18%of itscrudeoil imports from

Africa(includingtheNorthAfricancountries).24India’srelationshipwithAfricagoes

beyondaccessofenergyandothernaturalresources.AsMurliDeora,India’sMinisterfor

PetroleumandNaturalGas,pointsout,‘theemphasishasbeenonbuildinganenduring

partnershipwithsustainabledevelopment,restingonprinciplesofequality,mutualrespect

andmutualbenefit.’25

AnotherfactorinfluencingIndia’sforeignpolicyisthegrowingimportanceofAfricain

variousmultilateralinstitutions.Indiafavoursthereformofglobalgovernanceinstitutions,

especiallytheUNSC,inordertosecureagreatervoiceanddecision-makingpowerin

internationalprocessesandorganisationsfortheSouth.Indiahasrepeatedlypointed

outthattheUNSC ‘suffers fromademocracydeficit’,26doesnotrepresentthenewly

establishedgeo-politicsoftheworldandthattheworlddemandsandneedsachanged

UnitedNations.IndiahaslongheldthebeliefthattheUNSCmustreflectcontemporary

geo-politicalrealities,notthoseof1945.AnumberofcountriesinAfricahaveexpressed

theirsupportforIndia’scallforagenuinereformandexpansionoftheUNSC,which

wouldmeanagreaterrepresentationofdevelopingcountriesinbothpermanentandnon-

permanentcategoriesofmembership.Indianofficialshaveoftentalkedofjointeffortsto

reformtheUnitedNations:‘BothIndiaandAfricaareacutelyawareofaseriousdemocracy

deficitthatafflictstheinternationalbody…ifbothsidesrepresentingmorethanhalfof

12



theworld’shumanitycanfightthisbattleforjusticetogether,theycanstillmakeitanduse

theirinfluenceintheglobalbodytocreateanequitableworld.’27AsaleaderoftheSouth,

IndiaseekstotranslatethegoodwillthatexistsontheAfricancontinentintosupportfor

itsambitiontogainaseatattheUNSC.

Geo-politicsandsecurityarealsofactorsthatcontributetoupgradingAfrica’srole

inIndia’sforeignpolicy.CurrentlyIndiahasmilitaryco-operation,primarilyinthearea

oftrainingactivity,withalmostathirdofthe53Africannations,28andisalsooneofthe

largesttroopcontributorstoUNpeacekeepingmissionsinAfrica.Maritimeco-operation

isalsoontheupswing.Indiahasalongcoastlineand,toparaphraseNehru,although

separatedbytheIndianOcean,thecountriesontheeasterncoastofAfricaareIndia’s

neighbours.AsIndianmaritimeexpertshavenoted:29

OurstrategicmaritimefrontierextendsfromthePersianGulf,downtotheeastcoastof

AfricaandacrosstotheMalaccaStrait.Anythingthathappenstothisregionhasadirector

indirecteffectonourmaritimeinterestsandsecurityandweneedtobenotonlyawareofit

butmustalsobecapableofrespondingappropriately,ifrequired.

ThegrowingmenaceofpiracyisanotherchallengethathasledIndiatoenhancemaritime

co-operationwithAfrica,resultinginthedeploymentoftheIndianNavyontheEast

Africancoast,fromtheGulfofAdentotheMozambiqueChannel.

Another cause of concern is the rise of international terrorism in Africa. While

thethreatfromsectarianstrifeandIslamicmilitancyintheSahelregion,Somaliaand

Nigeriahasincreased,atthesametime(confoundingthemanta ‘failedstates leadto

terrorism’30)designatedterroristorganisationsappeartooperateinlaw-abidingcountries

suchasSouthAfricaandKenya.31Thepossibilityofgrowing linksbetweenterrorist

organisationsanddrugmafiasinWestAfricaposesamajorsecuritythreatnotonlyfor

theWestAfricanregionalone,butalsofortheentireinternationalcommunity.TheHorn

ofAfrica,particularlySomalia,hasbeeninnewsoflateduetotheactivitiesofextremist

organisationssuchasAlShahbab.32ForIndia,theterrorthreatemanatingfromAfrica

(andSomaliainparticular)isnotasgreatasthatfromPakistanorAfghanistan.However,

linkageofSomalisextremistswiththoseinAfghanistanandPakistancouldadversely

affectIndia’sfuturesecurity.ItisthereforenotsurprisingthattheIndia–AfricaFramework

forCo-operationseekstoenhanceAfrica’scapacitiestofightinternationalterrorism.

TheIndiandiasporainAfricaisanotherfactorfortheregion’sincreasedimportance.

In thepast,despitearound twomillionpeopleof Indianorigin living inAfrica, the

IndiangovernmentdidnotconsiderthattheIndiancommunityabroadhadanypolitical,

diplomaticoreconomicrelevanceforIndia.Untilveryrecently,anti-Asiansentiments

in Africa, for example Idi Amin’s expulsion of Ugandan Asians in the early 1970s,

guidedthepolicyofmaintainingadistancewiththeIndiancommunity.However,the

Indiangovernmenthasreviseditspolicyandisactivelyengagedinbuildingbridges.33

TherecentlyheldMiniPravasiBhartiyaDivasinDurban,SouthAfrica,signalledIndia’s

growinginterestininteractingwithitsdiasporainAfricaandbuildingrelationshipsbased

onmutualdependencies.

AsIndiamovestoincreaseitspresenceinAfrica,itwillfacenumerouschallenges.One

challengeisIndia’sreticencetocondemnauthoritarianregimes,forexampleIndiahas

beenreluctanttodisengagefromeconomicactivityintheSudan.Andyetthisbehaviour


13


stemsfromthetraditionalIndianforeignpolicyprincipleofnointernationalintervention

withinacountry’sborders,apositionrootedinthepost-colonialrespectofacountry’s

sovereignty.34AnotherchallengefacingIndiaistobalanceitsemergingroleasaresponsible

stakeholderintheglobalarenawiththetraditionalstanceofaleaderofthedeveloping

world.Forexample,againincontextofSudan,IndiavotedwithotherNAMcountriesto

refertheindictmentofPresidentOmarBashirbytheInternationalCriminalCourt(ICC)

toUNSC.However,despiteintenseeffortsbySudan,thestatementsissuedbyIndia’s

MinistryofExternalAffairsfellshortofeitherdefendingBashirorquestioningICC’s

jurisdictioninthematter.35ThegrowinginteractionofAfricancountrieswithemerging

powersrepresentsasignificantchallenge,asIndiawillhavetocompetewithChinaand

BrazilincourtingtheAfricans.ItisthereforeimportantthatIndiaemploysallavailable

diplomatictoolstoreiterateitsapproachtowardstheAfricancontinent.

Indeed,India’sdiplomaticeffortsaremultipurpose,directedtowardsaidingnotonly

India’senergystrategy,butalsobroadergoals.Nowhere is thismoreevident than in

Africa,whereIndia’sco-operationisclearlyholisticandcontainscultural,educational,

technicalandeconomiccomponents.Thetradetrends,thediverseinvestmentprofileand

variousinitiativestoaugmenttechnicalassistance,trainingandcapacitybuildinginAfrica

suggestsastrategythathasmarriedcomponentsoftheearlieridealisticpolicywithstrands

ofpragmatism.ThisstrategyaimstostrikeabalancebetweenIndia’sgrowingcommercial

andstrategicinterestsinAfricaanditstraditionalpolicyofSouth–Southco-operationand

empoweringAfrica.

e N d N o t e S

1 India,MinistryofExternalAffairs,Annual Report, 1992–93.NewDelhi,1993,p.55.

2 RajaMohanC,‘RethinkingIndia’sgrandstrategy’,inSisodiaNS&CUdayBhaskar,Emerging

India: security and foreign policy perspectives. NewDelhi:InstituteforDefenceStudiesand

AnalysisandPromillaandCo,2005,p.391990.

3 India,PrimeMinister’sOffice, ‘PM’sreplytotheLokSabhadebateonhisUSvisit’,3August,

2005,http://pmindia.nic.in/speech/content.asp?id=160.

4 India,PrimeMinister’sOffice,‘PMspeechatIndiaTodayconclave’,25February,2005,http://

pmindia.nic.in/speech/content.asp?id=78.

5 DubeyAK,Indo–African relations in the post Nehru era (1965–1985).Delhi:KalingaPublications,

1990,pp.25–28.

6 The trade figures in this section have been compiled from statistics provided by India’s

DirectorateGeneralofCommercialIntelligenceandStatistics,andMinistryofCommerce.

7 Inabidtoreduceenergydeficit,Indialaunchedapolicyinthe1990stoacquireoverseasoil

andgasassets.ThisdecisionwasmadeasperrecommendationsofthereportofGroupon

IndiaHydrocarbonsVision2025,aministerialgroupsetupbyIndianPrimeMinistertofocus

onlong-termenergysecurity.Oneofthereport’srecommendationswasthatIndiashouldhave

afocusedapproachtoacquireequitystakesinforeignoilandgasblocks.SeeIndia,Ministry

ofPetroleum,India Hydrocarbons Vision 2025,http://petroleum.nic.in/vision.doc.

8 SpeechdeliveredbyAnandSharma,MinisterofState,ExternalAffairson23June2008atthe

InstituteforDefenceStudiesandAnalyses,NewDelhi.SharmaA,‘IndiaandAfrica:Sharinga

robustpartnership’,inBeriR&UKumarSinha(eds),Africa and Energy Security, NewDelhi:

14



AcademicFoundation, 2009, p.23.

9 PrasadaJ,ValedictoryaddressbyIndianMinisterofStateforPetroleum&NaturalGasatthe

SecondHydrocarbonsConference,6December2010.

10 Agrawal S, ‘Adding shine to steel’, http://www.tata.com/media/articles/inside.aspx?artid=

PYkXhCLqLKQ=.

11 Hindu, ‘IFFCO[IndianFarmersFertiliserCooperativeLimited]signsMOUwithSenegal

government’,http://www.thehindu.com/2007/12/25/stories/2007122555761600.htm.

12 Allafrica.com,‘IndianfirmbuysZain’sAfricaassets’,http://allafrica.com/stories/201003251231.

html.

13 NyagahN,‘AfricanmarketsmakingsenseforIndia’,Emerging Powers in Africa Watch,447,10

September2009,http://www.pambazuka.org/en/category/africa_china/58593.

14 Thaindian.com, ‘Tata investment in Africa is worth billions’, http://www.thaindian.com/

newsportal/world-news/tata-investment-in-africa-isworth-billio.

15 India,MinistryofExternalAffairs,IndianTechnicalandEconomicCooperationDivision,A

Note on Indian Technical and Economic Cooperation,http://itec.nic.in/about.htm.

16 Capitalintensityherereferstocapitalemployedperworker.

17 India,MinistryofExternalAffairs,IndianTechnicalandEconomicCooperationDivision,http//

itec.nic.in/about.htm.

18 ‘Barefootwomen solar engineers ofAfrica,Asia andLatinAmerica’, http://challenge.bfi.

org/2010Finalist_BarefootCollege.

19 Indiahasproposedtodevelopfive‘humansettlementinstitutes’,ortobemorespecificlow-

costhousingdemonstrationcentres,invariouspartsofAfrica.

20 Acybertowerisahigh-techcommercialbuildingwhereITcompaniesofficesarelocated.

21 India, EXIM Bank, EXIM Bank’s operative line of credit http://www.eximbankindia.com/

locstat210111.doc.

22 NationalIntelligenceCouncil, Mapping the Global Future: Report of the National Intelligence

Council’s 2020 Project,Washington,DC,December2004,http://www.foia.cia.gov/2020/2020.

pdf.

23 PoddarT&ELi, ‘India’srisinggrowthpotential’,Goldman Sachs Global Economic Paper,

152,22January2007,http://www.usindiafriendship.net/viewpoints1/Indias_Rising_Growth_

Potential.pdf.

24 India,MinistryofPetroleum.

25 India,FederationofIndianChambersofCommerceandIndustry,keynoteaddressbyShri

MurliDeora,MinisterforPetroleumandNaturalGas. SecondIndia–AfricaHydrocarbons

Conference,7–8December2009,NewDelhi,http://www.ficci.com/events/20164/ISP/murli.

pdf.

26 India, Prime Minister’s Office, ‘PM’s address at the 60th anniversary of the UN General

Assembly’,http://pmindia.nic.in/speeches.htm.

27 India,MinisterofStateforExternalAffairs,‘IndiaAfricareadytoembraceglobaldestiny’,25

January2006.

28 DuttaA,‘Indo–AfricanDefenceCo-operation:needforenhancedthrust’,Journal of Defence

Studies,2,2,Winter2007,pp.170–77.

29 PrakashA, From the crow’s nest: a compendium of speeches and writings on maritime and other

issues.NewDelhi:NationalMaritimeFoundation,Lancer,2007,p.160.

30 RiceC,‘Thepromiseofdemocraticpeace:Whypromotingfreedomistheonlyrealisticpathto

security’,Washington Post,11December2005.


15


31 PiomboJR,‘TerrorismandcounterterrorismprogramsinAfrica:Anoverview’,January2007,

http://www.gees.org/documentos/Documen-01928.pdf.

32 On10July2010,AlShahbab,amilitantIslamicgroupwithdeepeningtieswithAlQaeda,

claimed responsibility for a terror attack in Kampala. Seventy-four persons, 60 of them

reportedlyUgandannationals,werekilledand70othersinjured,http://www.independent.

co.uk/news/uk/home-news/jihad-the-somalia-connection-1786608.html.

33 IndiangovernmenthasrecognisedthatthepotentialofIndiandiaspora,particularlythose

locatedinNorthAmericaandEurope.TheIndiangovernmenthopesthatIndiandiasporaand

thegovernmentcanworktowardsamutuallyadvantageousrelationship.SeeIndia,Report of

High Level Committee of Indian Diaspora,http://indiandiaspora.nic.in/contents.htm.

34 SomehaveopinedthatIndia’spositionofnon-interferenceinternalaffairsisunderscoredbythe

factthatIndiadoesnotwelcomeanythird-partyinterventionwithinitsowninternalaffairs,

e.g.inKashmir.SeeMadanT, ‘India’sinternationalquestforoilandnaturalgas:Fuelling

foreignpolicy’,India Review,9,1,January–March2010,pp.2–37.

35 VisitofDrAwadAhmedAl-Jaz,MinisterofFinanceandNationalEconomyofSudaninIndia,

30October2008,http://www.mea.gov.in/mystart.php?id=530214333.

S A I I A ’ S f u N d I N G P R o f I l e

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