The Hindu Business Line : Imports from 50 poor nations to be duty-free

New Delhi, April 8 India today unveiled a Duty Free Tariff Preference Scheme for imports from as many as 50 Least Developed Countries (LDCs), 34 of which are in Africa, recognising the crucial importance of market access in ensuring the development dimension of global trade.

Announcing this at the two-day India Africa Forum Summit here, the Prime Minister, Dr Manmohan Singh, said that under the scheme India would unilaterally provide preferential market access for exports from all 50 LDCs, a majority of which were in Africa. The scheme would encompass 94 per cent of India’s total tariff lines, and more particularly it would extend preferential market access on tariff lines that comprise close to 93 per cent of global exports of all LDCs, Dr Singh added.

Products of immediate interest to Africa which are covered under the scheme include cotton, cocoa, aluminium ores, copper ores, cashew nuts, cane sugar, ready-made garments, fish fillets and non-industrial diamonds. A FICCI study, released on the eve of the summit, said potential items for enhancing India’s imports from Africa include raw hides and skins, organic chemicals, nickel and articles thereof, iron and steel, salt, sulphur, earth and stones, lime and cement.

‘Land of awakening’

Lauding Africa as the “land of awakening”, Dr Singh said that “we visualise a partnership that is anchored in the fundamental principles of equality, mutual respect and mutual benefit. The objective of our partnership is to cooperate with all countries of Africa, within the limits of our capacities and capabilities, in their efforts towards achieving economic vibrancy, peace, stability and self-reliance”.

Dr Singh said that “the Delhi Declaration and the Africa-India Framework for cooperation that we plan to issue at the end of the summit will provide the blueprint for India-Africa dialogue and engagement in the 21st century”.

India would also issue grants for projects in excess of $500 million over the next five to six years in areas of railways, information technology, telecom and power.

The Prime Minister said that over the last five years, India has extended lines of credit to African nations and trading groups worth $2.15 billion and this was expected to double to $5.4 billion over the next five years. Dr Singh reassured the African leaders that India would reinforce local capabilities by fostering regional and pan-African institutions of higher education, particularly in sciences, information technology and vocational education and investment in research and development in renewable forms of energy and agricultural development.

In the two-day summit top African leaders including the South African President, Mr Taboo Mbeki; the Ugandan President, Mr Yoder Uneven; the Congo President, Mr Joseph Kabila; and the Algerian President, Mr Abdelaziz Bouteflika, would take part to present their perceptions of heightened cooperation.

Energy factor

Analysts said that both China and India were wooing Africa in order to get their energy sources of supply diversified to keep up momentum of their high economic growth in recent years and in the years ahead. They said that China hosted a similar summit with 35 African countries in November 2006 as the Middle Kingdom had a greater participation in hydrocarbon sectors in Africa.

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