The Hindu Business Line : Preferential trade pact may boost exports to Africa

New Delhi, April 7 An absence of a preferential trade agreement with Africa, lesser presence of Indian banks for providing letter of credit and difficulties in obtaining visas for long periods have been cited as the key impediments in bilateral trade between India and Africa.

To double trade to $50 billion over the next five years, on the eve of the India-Africa Political-Business Summit, the Federation of Indian Chambers of Commerce and Industry s recommended the setting up an Africa Promotion Council, incentivising exports, building a stronger brand of Indian products in the African markets, and an increase in credit lines.

Trade between the two countries increased over two folds from $6.5 billion in 2002-03 to $25 billion in 2006-07. During this period, share of Africa in India’s international trade increased from 2 per cent to eight per cent.

“Exports to Africa could be incentivised. A special package must be announced by the Government to push Indian exports into the African market. Promotion of export projects will in turn give a boost to the capital goods industry, consulting firms and companies providing technology support,” said FICCI in a report it released today.

It also suggested that Indian companies evaluate direct investment opportunities in the African market so as to get returns in the long run in the form of greater exports.

The summit would focus on sectors like automobiles, gems and jewellery, pharmaceuticals, food grains, leather that could be of export interest to Indian companies and products like coffee, tea, spices and condiments, minerals which can be imported from the African countries. (EOM)

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