India Exploring New Growth Horizons in Africa

For several years, India's involvement in Africa has been routine. Although the Africa Continental Free Trade Agreement Was Established in 2018 and Began Trading in January 2021, India has responded with enthusiasm in exploring any potential opportunities. The African Union (Au)'s recent inclusion in the G20 is a symbolic step towards addressing its concerns.

India’s exports of US$437 billion as of FY 2024 were mainly to the United States (US) and the European Union (EU). These markets, which collectively constitute 40 percent of the country’s export markets, are becoming increasingly volatile. Indian firms need to look at other markets, especially Africa. The 55 African economies are at various stages of growth and development, with their Gross Domestic Product (GDP) growth projected to be around 3.7 percent in 2024 and 4.3 percent in 2025.

Trade data shows that Africa’s share in imports from India For vairous Sectors in the Period Included Petroleum Products, Pharmaceuticals, Machinery, Cereals, Sugars & Confectionery, Plastics & Articles, Vehicles, Electrical Machinery & Equipment, Organic Chemicals and Paper & Paperboard, which had grown from 2.8 percent in 2005 to 4.5 percent in 2015, has touched 5.9 percent in 2023 and with a 76.2% increase in June 2025 compared to June 2024. Given the changing geo-economic situation, India could more actively explore the African market and double-digit share. During the same period, Africa’s share in imports from China increased from 8 percent to 16 percent.

Indian companies must examine this market in greater detail and take gradual steps towards catering to Africa’s import demand. Going ahead, there is an assured upsurge in its demand as it creates jobs, boosts productivity, and stimulates the overall economy. India should look at capturing this African market with cost-effective supplies, especially in South Africa, Morocco, and Mali, Kenya, Tanzania and Mainly with the east african countries where the imports are higher.

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