Union Finance Minister Arun Jaitley made a strong pitch on Tuesday to further cement India’s ties with African nations. Addressing the 52nd annual meeting of the African Development Bank (AfDB) here, he said, “With similar agendas, the potential horizon between India and Africa is only extending. The Indian Ocean may separate us geographically but partnership and collaboration will be the modern bridge between the two ancient civilisations with the bank being the strongest pillar.”

He highlighted the similarities between the African Development Bank’s ‘High 5’ agenda and Indian policy. Jaitley said, “I stand here with conviction that the 21st century would not be Asia’s alone but would belong to both Asia and Africa.” AfDB has adopted a strategy called ‘High 5s’, which focuses on five major developmental priorities comprising agriculture, energy, industrialisation, regional connectivity and improved quality of life through access to social and economic opportunities.

Advertisement

Jaitley said the African continent was transforming rapidly and amid a tough global scenario, its economy grew by 2.2 per cent in 2016 and was expected to grow by 3.4 per cent in 2017. “We are meeting in uncertain and challenging times. After a prolonged period of slow growth, the world economy is finally out of it. The global growth is projected to rise from, 3.1 per cent in 2016 to 3.6 per cent in 2018,” he added.

With reference to the recent policy decisions taken up by US President Donald Trump, including a clampdown on work visas to India’s technology giants, Jaitley said, “There is an increasing possibility of disruptions in the global economy due to inward-looking policies of some advanced countries. This has a danger of frittering away much of the gains from globalisation.”

On demonetisation, Jaitley said, “We have successfully implemented a slew of reform measures including one of the largest currency reform initiatives ever implemented which has moved the Indian economy towards a less-cash trajectory. It has increased tax compliance and reduced the threat of counterfeit currency.”

other reform initiatives like the passage of the GST Bill, reforms in Budget process and liberalisation in FDI, Jaitley said, “Africa is approaching an exciting time. India and Africa should navigate through this journey together and shape their common future.” He added that India was committed to Africa’s development and this commitment was reflected in “continued high-level political engagement,” including the three India-Africa summits.

India being the fourth largest investor in Africa with 45 projects, the total trade between India and Africa increased almost five-fold between 2005-06 and 2015-16, and stood at $52 billion in March 2016-17. India's exports to Africa increased from $14 billion in 2007-08 to $23 billion in 2016-17, with compound annual growth rate of 5.6 per cent. “It is no coincidence that our Prime Minister, President and Vice-President have together visited 16 African countries in the past. There isn’t a single African country which has not been visited by one of my cabinet colleagues,” the Finance Minister said.