Post by account_disabled on Feb 22, 2024 1:22:08 GMT -6
The author is a non-resident fellow at the Brookings Institution's Africa Growth Initiative. India's G20 presidency brought about one of the most significant changes in global governance in a decade: the representation of 1.4 billion people in the world's main economic coordination body. The recent summit in New Delhi negotiated permanent membership of the African Union body, with the potential to create a growth story for the continent over the next decade. Despite predictions about the end of globalization, global trade has remained resilient in the face of successive shocks, notably the Covid-19 pandemic and the Russian invasion of Ukraine. Driven by rising commodity prices, global trade increased 26 percent in 2022 from pre-pandemic 2019 figures. But while 2023 may be more subdued as central banks fight inflation and the Chinese economy slows, international trade will remain resilient, even if it is affected by geopolitics.
There is an opportunity here for both Africa and India. Despite a combined population ofbillion people, the two regions control a relatively small proportion of world trade: ercent and 3 percent for Pakistan Phone Number India and Africa, respectively. (By comparison, China accounts for 14 percent, the United States 8 percent, and Germanypercent.) Between and , trade between the two increased from $7.2 billion to almost $60 billion. But this is only the beginning of the story. Because, when it comes to the composition of trade, the relations between the two have barely changed in a decade. India mainly imports fuel and chemicals from Africa. It exports fuel and pharmaceutical products to Africa, mainly to five countries. However, growth over the next 25 years will be green and digital. And India and Africa, with their growing incomes and demographic trends, could be important markets.
Importantly, they could also supply the world with intermediate and finished products in electric vehicles, green homes, green fertilizers, renewable energy and digital infrastructure. This is a global opportunity estimated to be worth more than trillion by To make the most of it, both India and Africa should implement a four-point plan to double their share of global trade by . First, they should work on a free trade agreement that takes advantage of the reshaping of global trade relations. African countries and India have a long history of trade. They also belong to many of the same global platforms, such as the Commonwealth and other bodies. Your priority should be to develop a joint business strategy focused on strategic sectors.
There is an opportunity here for both Africa and India. Despite a combined population ofbillion people, the two regions control a relatively small proportion of world trade: ercent and 3 percent for Pakistan Phone Number India and Africa, respectively. (By comparison, China accounts for 14 percent, the United States 8 percent, and Germanypercent.) Between and , trade between the two increased from $7.2 billion to almost $60 billion. But this is only the beginning of the story. Because, when it comes to the composition of trade, the relations between the two have barely changed in a decade. India mainly imports fuel and chemicals from Africa. It exports fuel and pharmaceutical products to Africa, mainly to five countries. However, growth over the next 25 years will be green and digital. And India and Africa, with their growing incomes and demographic trends, could be important markets.
Importantly, they could also supply the world with intermediate and finished products in electric vehicles, green homes, green fertilizers, renewable energy and digital infrastructure. This is a global opportunity estimated to be worth more than trillion by To make the most of it, both India and Africa should implement a four-point plan to double their share of global trade by . First, they should work on a free trade agreement that takes advantage of the reshaping of global trade relations. African countries and India have a long history of trade. They also belong to many of the same global platforms, such as the Commonwealth and other bodies. Your priority should be to develop a joint business strategy focused on strategic sectors.