By P. Vijian, NNN-Bernama
New Delhi : Recognizing the importance of market access to ensure development of international trade, India is engaging the African states and offering trade privileges to the continent which has more than 900 million people.
Indian Prime Minister Manmohan Singh said his government would offer a duty-free tariff preference scheme for the least developed countries (LDCs) to spur trade and commerce.
“The objective of our partnership is to co-operate with all African countries, within the limits of our capacities and capabilities, in their efforts towards achieving economic vibrancy, peace, stability and self-reliance. Towards this end, it is our intention to become a close partner in Africa’s resurgence,” he said in his opening address at the two-day India-Africa Forum summit here Tuesday.
Under the scheme, India will unilaterally provide preferential market access for exports from all 50 LDCs, 34 of which are in Africa. The scheme will cover 94 per cent of India’s total tariff lines.
Manmohan said the scheme would offer preferential market access on tariff lines that comprised 92.5 per cent of global exports of all LDCs.
Some of the products of immediate interest to Africa that are covered include cotton, cocoa, aluminium ore, cashew nuts and ready-made garments.
He said India would also undertake the development of critical projects over the next five to six years, against grants in excess of 500 million USD.
Africa-India trade has surged significantly — from 5.5 billion USD in 2002 to 30 billion USD last year.
Leaders of 14 African countries, including several presidents, are here to explore deeper trade relations with India, which is now the world’s fourth largest economy.