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    India in Africa

    Implications for Norwegian Foreign

    and Development Policies

    NUPI Report

    NorskUten

    rikspolitiskInstitutt

    Norwegian

    InstituteofInternationalAffairs

    Stein Sundstl Eriksen, Aparajita Biswas, Ajay Dubey,

    yvind Eggen and Mzukuzi Qobo

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    Publisher:Copyright:

    ISBN:

    Visiting address:

    Address:

    Internet:E-mail:

    Fax:

    Tel:

    Norwegian Institute of International Affairs Norwegian Institute of International Affairs 2012

    978-82-7002-320-2

    Any views expressed in this publication are those of the

    authors. They should not be interpreted as reecting the

    views of the Norwegian Institute of International Affairs.The text may not be printed in part or in full without the

    permission of the author.

    C.J. Hambros plass 2d

    P.O. Box 8159 Dep.

    NO-0033 Oslo, Norway

    www.nupi.noinfo@nupi.no

    [+ 47] 22 99 40 50

    [+ 47] 22 99 40 00

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    India in Africa

    Stein Sundstl Eriksen, Aparajita Biswas, Ajay Dubey,

    yvind Eggen and Mzukuzi Qobo

    Implications for Norwegian Foreignand Development Policies

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    Table of Content

    Executive Summary .............................................................................. 7Purpose .............................................................................................. 7Indias relations with Africa ............................................................. 7India in Africa: forms of engagement ............................................... 7Implications for Africa ...................................................................... 8Implications for Norway ................................................................. 10

    1. Overview ......................................................................................... 13

    1.1 Historical background .......................................................... 131.2 Indias foreign policy ........................................................... 131.3. Indias Africa policy............................................................. 151.4. Sectoral overview of current engagement ............................ 18

    1.4.1 Trade ............................................................................. 181.4.2 Investments ................................................................... 21

    Investment overview ....................................................................... 221.4.3 The energy sector .......................................................... 221.4.4. Diplomacy and security ................................................ 231.4.5 Development assistance ................................................ 251.4.6 Agriculture and food security ....................................... 281.4.7 Health cooperation ........................................................ 301.4.8 Climate and the environment ........................................ 31

    1.5. Country case studies ............................................................. 321.5.1 Nigeria........................................................................... 321.5.2 Sudan............................................................................. 36

    2. African responses and implications for Africa ............................... 412.1 Introduction .......................................................................... 412.2 Differences between India and other powers ....................... 422.3 Implications for economic growth ....................................... 43

    2.4 Political implications ............................................................ 462.5 Implications in specific policy areas .................................... 482.5.1 Good governance, democracy and human rights .......... 482.5.2 Management of natural resources, climate and the

    environment .................................................................. 492.5.3 Food security and agriculture ........................................ 502.5.4 Security, peace and reconciliation ................................ 512.5.5 Capital movements, tax havens and corruption ............ 522.5.6 Health ............................................................................ 522.5.7 Decent Work ................................................................. 53

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    6 Stein Sundstl Eriksen, Aparajita Biswas, Ajay Dubey, yvind Eggen and Mzukuzi Qobo

    3. Implications for Norway ................................................................. 553.1 General implications: reconsidering assumptions ................ 553.2 Development cooperation .................................................... 57

    3.2.1 Poverty alleviation ........................................................ 593.2.2 Good governance, democracy and human rights .......... 613.2.3 Fighting corruption ....................................................... 623.2.4 Climate and the environment ........................................ 63

    3.3 Business engagement in Africa ............................................ 643.4 Multilateral cooperation ....................................................... 65

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    Executive Summary

    PurposeThe growing engagement of emerging powers such as China and Indiain Africa has major implications for development on the continent.This report, commissioned by the Norwegian Ministry of Foreign Af-fairs, presents and reviews Indias new engagement in Africa and dis-cusses the implications of this engagement for development in Africaand for Norwegian foreign and development policies.

    Indias relations with AfricaSince Indias independence, it has supported African national strug-gles against colonialism and against apartheid in South Africa, and ithad a leading role in the Non-Aligned Movement (NAM). But in spiteof historical ties and ideological affinity, the African continent wasrelatively marginal in Indias foreign policy and diplomacy until1990s. In official rhetoric, Indias relationship with Africa is still

    based on the shared historical experience of colonialism. Nevertheless,Indias involvement in Africa is driven first and foremost by what is

    seen as its national interests.

    There are three main factors that have led India to recast its Africapolicy. First, securing cheap energy and other strategic raw materialson a long-term basis is an economic and political imperative. Second,Africa has emerged as an important market for Indian goods and ser-vices. Africa is viewed as an underdeveloped market for low-technology and cost-effective manufactured goods and services.Third, India considers the Indian Ocean region to be within its sphereof influence, and has expanded its military presence in the IndianOcean.

    India in Africa: forms of engagementBetween 2000 and 2009, the volume of trade between India and Afri-ca increased by more than 700%. The increase mainly reflects a sharpincrease in demand for oil and other raw materials, but during thesame period Indian exports to Africa have more than doubled. Indianinvestments in Africa are in many sectors, including service, manufac-turing and infrastructure. The investments are led by the private sec-tor, but the government also takes an active role through investment

    by state owned companies, extension of credits and active diplomacy.

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    8 Stein Sundstl Eriksen, Aparajita Biswas, Ajay Dubey, yvind Eggen and Mzukuzi Qobo

    Diplomatic ties have been scaled up significantly, reflected both interms of increased priority to Africa at the Ministry of External Af-fairs, and in the number of embassies and high commissions in Africa.

    India has continually participated in UN peacekeeping operations inAfrica. It has entered into defence agreements with several countriesin East Africa, funds training of officers, and has supplied militaryequipment to several African countries.

    Development assistance from India has been increased rapidly. Thebulk is devoted to training, capacity building, consultancy services,deputation of experts, study tours and other soft investments.

    Two sectors where development assistance and economic cooperationare closely integrated are agriculture and health. A number of initia-tives have been taken to increase cooperation in agriculture focusingon capacity building, research and sharing knowledge, while Indianagricultural firms invest in many African countries. In the health sec-tor, training of health personnel, joint research and other forms of de-velopment cooperation correspond with Indian export of pharmaceuti-cals and medical tourism.

    India and African countries have joint interest in their call for devel-oped countries to substantially cut their climate gas emissions and

    make legally binding commitments, while allowing voluntary cuts fordeveloping countries, as well as providing funds to support developingcountries in addressing address climate change, with some differencesin approach.

    Implications for AfricaBy and large, Indias engagement in Africa has been welcomed byAfrican governments. The fact that India can present its engagementas an expression of south-south solidarity has probably contributed toits legitimacy.

    African countries have benefitted from export to India both in terms ofincreased quantities of exports and in terms of higher prices caused