TODAYs ANSWER WRITING CHALLENGE FROM GS-II
Q1. Increasing interest of India in Africa has its pros and cons. Critically examine.
[12.5marks/2015/GS-2] 200 words.
Please write answer in the comments section.
# In October 2015 new delhi hosted a INDIA-AFRICA forum summit where 54 African countries brought together and india shown interest in strengthening relations with african countries by discussing on economic,political and diplomatic ties.
#this interest have several pros and cons which india should take in a consideration before moving ahead.
1) india wants to join UN security council and is counting african delegates to votes to achieve that.
2) india is a progressing economy in africa and strongly active in these sectors automobiles,services pharmaceuticals,construction and resources among southern and eastern africa.more and more indian companies investing in west and north africa so to foster the investment india already have the goodwill throughout the africa..in 2014 indias investment was $ 40 billion.
3)africans of indian descent help to foster africa – india economic and cultural relations.
4) india willl b benefited by the african private entrepreneurs also, who set up businesses between africa and india in various economic sectors.
1)it can be a cause of competition as increase in investment with africa will decline the trade and investment between their traditional partners (US AND EUROPE)
2)currently chinese investment outweighs indias ,however in summit signaled long term engagement in continent so rivalries can be overstated ..
#so, india need to ensure few things to maintain the situation
1) ramp up diplomatic presence in india,
2) set up special purpose vehicle to pursue business and investment opportunities in africa
3) set up official entity to maintain corporate social responsibility issues.
# there is no fair say about it, because india as an emerging economy will try foster investment to reap the advantages.and africa also want to diversify their partnerships among the new partners..