African nations should leverage Duty Free Tariff Preferences Offered by India – Commerce and Industry Minister

Business and Financial Institutions deliberated on the potential for business cooperation between India and Africa at a Seminar on ‘Focus Africa’ organised by the Export-Import Bank of India. Delivering the special address, Mrs. Nirmala Sitharaman, Hon’ble Minister for Commerce and Industry, Government of India highlighted that India has offered the Duty Free Tariff Preference (DFTP) scheme for LDCs which provides duty free market access on over 95% of tariff lines. Not many countries have offered such overarching reduction in tariffs for LDCs, including those in Africa, the Minister said. Hon’ble Minister advised the financial institutions and think-tanks in Africa and India to popularise the advantages of DFTP, among Indian and African business. Indian business could look at Africa for their investments and in-turn look at the India for their market using the DFTP.

The Minister added that the Government of India has been encouraging services cooperation with the African nations. Africa has potential for development of tourism, healthcare, hospitality and ICT sectors. The Government of India supported Pan-Africa e-Network has contributed significantly to the Africa’s skill development and healthcare deliver, Mrs. Sitharaman said. The Government is looking at the feasibility of providing cost-effective credit facilities to build capacities in other developing nations, particularly in Africa, the Minister said.

Earlier speaking on the occasion, Mr. Anil Jain, Managing Director, Jain Irrigation stated that the opportunities are significant in developing agri-value chain in Africa linking up with India. Mr. Jain also highlighted that institutions like Exim Bank should enhance its support to African nations in agriculture development of African nations. Mr. Tulsi Tanti, Chairman, Suzlon Group stated that Africa is not only rich in mineral and oil resources, but also a continent with high renewable energy sources. India is willing share its technologies and skills with African nations in solar, wind and biomass development, Mr. Tanti said.

Dr. Bassary Toure, Vice President, West African Development Bank (BOAD) delineated on how the Indian tractors imported under the lines of credit extended by the Exim Bank increase agriculture acerage, productivity as also employment. Dr. Philip Kamau, Senior Director, Finance, Afrexim bank stated that India should do investments in Africa, so that the African nations join the global value chain. Dr. Philip highlighted that India’s developmental model is most appropriate for Africa, and India should help transfer skill-sets in implementing developmental objectives.