54 AFRICAN COUNTRIES

India is the seventh largest country by geographical area and second most populous country in the world. Surrounded by the Indian Ocean in the south, the Arabian Sea in the west and the Bay of Bengal on the east, India has a coastline of 7,517 kilometers (4,671 mi), which gives it a wide opportunity for trade through its seas. In the west, India is bordered by Pakistan and in the north by People's Republic of China, Nepal, and Bhutan. Bangladesh and Myanmar are in the eastern region. India is in the vicinity of Sri Lanka, the Maldives, and Indonesia in the Indian Ocean.

The Indian economy has witnessed a phenomenal growth in the last decade. The country is still holding its ground in between the current global financial crisis. Quarterly gross domestic product (GDP) at factor cost at constant (1999-2000) prices for Q3 of 2008-09 is estimated at US$ 171.24 billion, as against US$ 162.57 billion in Q3 of 2007-08, showing a growth rate of 5.3 per cent over the corresponding quarter of previous year. Despite the global slowdown, the Indian economy is estimated to have grown at close to 6.7 per cent in 2008-09. The Confederation of Indian Industry (CII) pegs the GDP growth at 6.1 per cent in 2009 -10. This scenario factors in growth rates of various sectors are 2.8 - 3 per cent, 5 - 5.5 per cent and 7.5 - 8 per cent, respectively, for agriculture, industry and services.

Demographics

India has an estimated population of 1.17 billion which representing 17% of the world population, India is the world's second most populous country. In the last 50 years there has been a rapid increase in population due to medical advances and massive increase in agricultural productivity made by the green revolution.

Economy

India is diverse in all its forms including its economy, which encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. The economy of India is the fifth largest in the world with respect to its GDP of $3.3 trillion at PPP and has a real GDP growth rate of 7.4% at PPP. Growth in the Indian economy has steadily increased since 1979, averaging 5.7% per year in the 23-year growth record.

The government has reduced its control over the foreign trade and investment. Higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications. India has emerged the global leader in software and business process outsourcing services, raking in revenues of US$12.5 billion in the year that ended March 2004.

Exports

The export from India stands at USD 181.86 Billion for the year 2008, registering a growth of 24.64% over the previous year 2007. The main export commodities in India include oil products, petroleum products, sugar, tea and coffee, textiles and knitwear, tobaccos, iron ore, jewellery, jute, leather goods, machinery, organic and inorganic chemicals and cotton. The main import commodities include fertilizers, fuel, gemstones, and industrial chemicals, iron steel, non-ferrous metals, edible oils and chemical products.

The Government of India, has started various programs to support the exports from the country. In this regard, the government of India has started supporting exports from special economic zones (SEZs).  The exports from SEZs rose 33 per cent during the year to end-March 2009. Exports from such tax-free manufacturing hubs totaled US$ 18.16 billion last year up from US$ 13.60 billion a year before.

India's Central Bank has relaxed foreign exchange regulations governing imports of capital goods and authorized dealers may release foreign exchange for such imports without limits. Foreign currency and travelers' cheques may be taken into India without limit but must be declared to the customs authorities on arrival as long as the amount taken out of the country may not exceed that taken in. Import duties are applied to almost all items imported into India and are a major source of revenue for the central government and the tariff is based on the Harmonized System.

The Federation of Indian Export Organization (FIEO) has suggested formation of a new trading block of Indian Ocean Rim countries consisting of India, Comoros, Maldives, Mauritius, Madagascar, Mozambique, Reunion, Sri Lanka, Seychelles and South Africa. The familiarity between these countries could enable them to reduce tariffs and provide easy access for their products to each other's markets.

India has seven Export Processing Zones (EPZ), namely - Kandla, Santa Cruz (Bombay), Mumbai, Falta (West Bengal), Madras (Tamilnadu), Noida (UP), Cochin (Kerala) and Visakhapatnam (Andhra Pradesh).

Product Group-wise Global Imports of Africa, India’s Global Exports and Exports to Africa

Africa is one of the major business destinations for India and it is growing at a rapid pace. The export from India to Africa has grown at a rate of 23.64% for the year 2008 over the year 2007. India has registered a growth of 24.65% in exports to the world. The figures revels that there is enormous opportunity for the Indian exports in African region. The total exports to Africa from India stands at USD 15.38 Billion as compared to the previous year of USD 12.44 Billion. The share of Indian exports to Africa is just over 3 percent of the global imports to Africa.

Some of the major Product groups are:

1. The products, Mineral fuels, oils and distillation products fall in the HS Code 27. This item holds top rank in exports from India to Africa for the year 2008 with a growth rate of 39.62% over the previous year. The percentage share in exports from India to Africa, for the item is nearly 29% but when compared to the global imports to Africa it comes down to 6.76% only.

2.The products, vehicles fall in the HS Code 87. This item holds second slot in exports from India to Africa for the year 2008. The percentage share in exports from India to Africa, for the item is 8.13% but when compared to the global imports to Africa it comes down to 3.11% percent only.

The tabulation below depicts product group-wise India’s Exports to African Region in the last 3 years i.e. 2006 to 2008.:-