India-Africa brief

Abstract: Over the past decade India has reengaged with the African continent on multiple fronts, including through economic diplomacy and increased development cooperation partnerships. Though grants to African countries represented a small proportion of Indian development assistance, these grants were made to sectors such as information and communication technology, education, and training of government officials, sectors where Indian aid has an advantage compared to foreign aid from traditional donors or rising donors such as China. By 2011/12 the majority of India’s aid to Africa was in the form of Lines of Credit (LOCs). These LOCs also built on India’s comparative advantage in sectors such as energy exploration and development, agricultural training, and developing of the transport sector. Due to the LOC’s nature of essentially being tied aid, they helped foster Indian exports to Africa. These Line of Credits complement aid from other donors and are helping India to reestablish closer bilateral relationships with many African countries. In addition to grants and credit lines, Indian development assistance to Africa has also used its comparative advantage in the information technology sector to build up a low-cost, Pan African e-Network, which is designed to help foster digital connections and development in Africa. Indian development cooperation trends in Africa illustrate the larger narrative of economic diplomacy undergirding India’s development assistance program.

Post description

  • Publication year: 2014
  • Content type: Policy brief
  • Form of cooperation: Comprehensive (lines of credit, grants and loans, and technical assistance).
  • Cooperation context: Multilateral
  • Region (country): Africa
  • Sector: Multisectoral
  • Institution (publication): Centre for Policy Research
  • Author (and co-authors): Rani Mullen and Kashyap Arora
  • Keywords: South-South cooperation; India’s development cooperation; Pan Africa e-network; Africa; lines of credit
  • Link: CPR site