Are Economic Relations with India Helping Africa? Trade, Investment and Development in the Middle-Income South
32 Pages Posted: 1 May 2019
Date Written: March 1, 2019
It is time to discard the image of Africa as a low-income region that relies on aid, trade and investment relationships with high income Europe and North America. This paper, along with three companion papers on Africa’s economic growth, public debt, and relations with China, paints a picture of a subcontinent that is becoming a middle-income region with ever strengthening economic relations with middle-income countries in other parts of the world, especially Asia. India's economic relations with African countries have been growing since the global financial crisis and, though it trails China by a lot, it is now Africa's second most important trade partner. While India's exports of healthcare services to Africa get a lot of press, but perhaps the most beneficial trade between the two subcontinents has been in pharmaceuticals, because of its contribution to the containment of HIV/AIDS and Meningitis A. India’s other exports are fuels, chemicals, agricultural goods, and machinery; still largely complementary to China's activities in Africa, but gradually becoming more competitive.
Keywords: economic, India, Africa, world, south, food, exports, imports, growth, loans
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