New Delhi: Four sectors - automobile, agriculture, pharmaceuticals and logistics - have huge potential for India and Africa to increase trade and investments, a senior government official said on Thursday.
Commerce Secretary Sunil Barthwal said bilateral trade between the two regions amounted to $100 billion in 2022 and there is a need to aim to double it to $200 billion by 2030.
He said the African Continental Free Trade Area (AfCFTA) has identified these four potential sectors: automobiles, agriculture and agro-processing, pharmaceuticals and transport and logistics.
"We strongly believe that these sectors have huge potential for collaboration in terms of investment, trade, technology and capacity building between Africa and India," he said at the CII India Africa Business Conclave here.
In agriculture, he said both sides can increase trade and cooperation in areas such as processed foods and seed technology.
He added that India's pharmaceutical exports to Africa amounted to $3.8 billion in 2023 and there are opportunities to increase trade in the sector and provide affordable medicines and healthcare to Africans.
Africa is a key player and supplier of critical minerals as they are critical to the green energy transition.
Critical minerals such as cobalt, copper, lithium, nickel and rare earths play a crucial role in the production of clean energy technologies, from wind turbines to electric cars. Critical minerals are in particular demand for the production of batteries for electric cars.
The secretary said India can share its experience and best practices in the logistics sector.
He also said there is enormous scope to expand Africa's import basket.
India can implement tailor-made capacity building programs in Africa, Barthwal said, adding that both sides should also work together at the World Trade Organization.
Speaking at the conclave, Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs, said Africa is not fully utilizing the Duty Free Tariff Preference (DFTP) scheme and there is a need to examine such issues.
Ravi suggested that Indian companies consider setting up industries in Africa as the continent has huge manufacturing opportunities.
He also called for an increasing flow of information from the African side regarding its land leasing laws, incentives, schemes and policies, as Indian companies may not be aware of them.
This flow of information will help strengthen economic ties between the two, he added.
Commerce Secretary Sunil Barthwal said bilateral trade between the two regions amounted to $100 billion in 2022 and there is a need to aim to double it to $200 billion by 2030.
He said the African Continental Free Trade Area (AfCFTA) has identified these four potential sectors: automobiles, agriculture and agro-processing, pharmaceuticals and transport and logistics.
"We strongly believe that these sectors have huge potential for collaboration in terms of investment, trade, technology and capacity building between Africa and India," he said at the CII India Africa Business Conclave here.
In agriculture, he said both sides can increase trade and cooperation in areas such as processed foods and seed technology.
He added that India's pharmaceutical exports to Africa amounted to $3.8 billion in 2023 and there are opportunities to increase trade in the sector and provide affordable medicines and healthcare to Africans.
Africa is a key player and supplier of critical minerals as they are critical to the green energy transition.
Critical minerals such as cobalt, copper, lithium, nickel and rare earths play a crucial role in the production of clean energy technologies, from wind turbines to electric cars. Critical minerals are in particular demand for the production of batteries for electric cars.
The secretary said India can share its experience and best practices in the logistics sector.
He also said there is enormous scope to expand Africa's import basket.
India can implement tailor-made capacity building programs in Africa, Barthwal said, adding that both sides should also work together at the World Trade Organization.
Speaking at the conclave, Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs, said Africa is not fully utilizing the Duty Free Tariff Preference (DFTP) scheme and there is a need to examine such issues.
Ravi suggested that Indian companies consider setting up industries in Africa as the continent has huge manufacturing opportunities.
He also called for an increasing flow of information from the African side regarding its land leasing laws, incentives, schemes and policies, as Indian companies may not be aware of them.
This flow of information will help strengthen economic ties between the two, he added.
