Are Economic Relations with India Helping Africa? Trade, Investment and Development in the Middle-Income South

32 Pages Posted: 1 May 2019

See all articles by Siddharth Dixit

Siddharth Dixit

Duke University - Duke Global Health Institute

Indermit S. Gill

World Bank - Poverty Reduction and Economic Management Network (PRMVP)

Chinmoy Kumar

Duke University

Date Written: March 1, 2019

Abstract

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

Suggested Citation

Dixit, Siddharth and Gill, Indermit S. and Kumar, Chinmoy, Are Economic Relations with India Helping Africa? Trade, Investment and Development in the Middle-Income South (March 1, 2019). Duke Global Working Paper Series No. 2019/04. Available at SSRN: https://ssrn.com/abstract=3364646 or http://dx.doi.org/10.2139/ssrn.3364646

Siddharth Dixit

Duke University - Duke Global Health Institute ( email )

310 Trent Drive
Box 90519
Durham, NC 27710
United States

Indermit S. Gill (Contact Author)

World Bank - Poverty Reduction and Economic Management Network (PRMVP) ( email )

Washington, DC 20433
United States

Chinmoy Kumar

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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