India hosts its
biggest-ever Africa summit this week as Prime Minister Narendra Modi
seeks to challenge China's dominance on a continent that is blessed with
vast natural resources and has the world's fastest-growing population.
New
Delhi wants to project its soft power and historical ties to Africa, in
contrast to China's focus on resource extraction and capital investment
that has sparked a backlash in some countries against Beijing's
mercantilist expansion.
Of the 54
countries invited, the hosts expect more than 40 to be represented by
their heads of state and government who, after a series of ministerial
meetings, will hold a full summit on Thursday.
India's
trading ties with Africa date back to antiquity and both found common
cause in the struggle against colonial rule. Yet India's influence faded
over the course of the Cold War as it withdrew into non-aligned
isolation.
Now Modi, self-styled
chief salesman of a "Make in India" export drive, wants to capitalise on
an economic slowdown in China to highlight India as an alternative
partner for trade and investment.
"India
is the fastest-growing major economy. Africa is experiencing rapid
growth too," Modi told African journalists on the eve of the summit.
Although
India's headline economic growth has overtaken China's, its economy is
one-fifth the size and it lacks the financial heft to challenge Beijing
in a head-to-head contest for the African market.
"We can't match the
Chinese in terms of resources - but any engagement we do with the
Africans at least gives them a choice," said C. Raja Mohan, a foreign
policy commentator at the Observer Research Foundation in New Delhi.
The
India-Africa Forum Summit is the third of its kind and, since the first
was held in 2008, two-way annual trade has more than doubled to $72
billion.
That lags trade between
China and Africa, which has exploded to $200 billion as the world's No.2
economy sucks in oil, coal and metals to feed its industrial machine.
The
world's largest democracy has been criticised by human rights groups
for inviting Omar al-Bashir, the president of oil-rich Sudan wanted by
the International Criminal Court on charges of war crimes, crimes
against humanity and genocide in Darfur.
EXPLOITATION AND EXTRACTION
For India, business comes first.
State-run
oil company ONGC, which has fields in Sudan and South Sudan, is on the
hunt to buy $12 billion in foreign assets over the next three years and
has identified Africa as an investment target. India is also in talks
with South Africa to buy coal mines producing up to 90 million tonnes
of coking coal each year to feed its growing steel industry. South
Africa is already a major coal supplier to India.
Still, India wants
its involvement in Africa to be less transactional than China's, seeking
a development partnership for two regions that account for a third of
the world's people, but seven in 10 of those living in poverty.
"Our
partnership is not focused on an exploitative or extraction point of
view, but is one that focuses on Africa's needs and India's strengths,"
said Vikas Swarup, spokesman for the Indian Ministry of External
Affairs.
Trade ministers from India
and Africa are looking to make common cause at a World Trade
Organization ministerial meeting in Nairobi next month, Commerce
Minister Nirmala Sitharaman said.
Although
India dropped its veto against a WTO deal to streamline customs
procedures a year ago, it remains uneasy over Western pressure on food
stockpiling it says is vital to ensure its 1.25 billion people don't go
hungry.
"India and Africa are on the same page," Sitharaman told reporters.
Source: REUTERS
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