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India’s trade and investment potential in East Africa Region: Exim Bank

India Infoline News Service | Mumbai |

Accordingly, the global trade of EAC increased over 5-fold from US$8.9bn in 2002 to US$49.3bn in 2012.

Export-Import Bank of India (Exim Bank)’s study on “East African Community (EAC): A Study of India’s Trade and Investment Potential” was released at the hands of Mr. Mbi Emmanuel Ebot, First Vice President and Chief Operating Officer of African Development Bank (AfDB), at Kigali, Rwanda, on May 22, 2014, at the “Africa - India Partnership Day”, held during AfDB Group Annual Meetings 2014.

Exim Bank’s latest study highlights that the East African Community (EAC) region recorded robust economic performances in the recent years, with a robust growth of 5.3 percent in 2012. Exports of the EAC have increased to US$13.8bn in 2012 from US$2.8bn in 2002, while imports have also witnessed almost 6-fold increase to US$35.4bn in 2012 from US$6.1bn in 2002. Accordingly, the global trade of EAC increased over 5-fold from US$8.9bn in 2002 to US$49.3bn in 2012.

The study draws attention to the fact that India’s trade and investment relations with the EAC region have strengthened in recent years, and present opportunities to further enhance bilateral commercial relations. Bilateral trade between India and the EAC has risen 13-fold, from US$490.8mn in 2002 to US$6.6bn in 2012. India’s exports to the EAC countries have risen significantly by 16-fold from US$369.3 mn in 2002 to touch US$5.9bn in 2012. As a result, the share of the EAC countries in India’s total exports to Africa has risen from 12.2 percent in 2002 to a healthy 21.7 percent in 2012. India’s imports from the EAC region have also risen over 5-fold from US$121.5 mn in 2002 to US$624.1 mn in 2012, accounting for 1.5 percent of India’s total imports from Africa.

Potential items for India’s exports to the EAC region would include, among others, petroleum products, machinery and instruments, electrical and electronic equipment, vehicles other than railway, cereals, animal, vegetable fats and oils, iron & steel, and plastics. Potential sectors for India’s investment in the region would include, among others, agriculture, horticulture, manufacturing, construction, energy, banking and other financial services, information and communication technology (ICT) and tourism.

The study has also delineated broad strategies and recommendations to enhance India's commercial relations with the EAC region, which include cooperation in key sectors, including: transport related infrastructure; meeting power and energy requirements of EAC; financial/ banking sector development; agriculture and food security; capacity building, technology transfer and human resource development; ICT and knowledge sharing; environment and natural resources development and management; industry and micro, small and medium enterprises (MSME) development; hospitality industry; multilateral funded projects; and in developing linkages with trade promotion institutions / investment promotion agencies / chambers of commerce.
 

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