India-Africa trade relations in focus as Modi set to clinch third term

The fiercely contested India elections have continued to captivate global attention as the current leader, Narendra Modi, is poised to secure a third term in office. The election results have been a topic of discussion not only within India but also internationally, with significant implications for countries like Africa. CNBC Africa's Ridhima Shukla provided insights into how Modi's leadership could impact trade relations between India and Africa during a recent interview. The 2024 general elections in India have been marked by unexpected results and market volatility. The NDA, led by Modi, and the India bloc, led by Rahul Gandhi, were the two major coalitions competing for the center seat. Exit polls initially projected a landslide victory for Modi's BJP, causing stock markets to surge to all-time highs. However, when the final results revealed that BJP had fallen short of the majority, markets witnessed a significant decline. Despite this setback, NDA, with Modi as prime minister, will form the government with smaller parties like TDB and JD. Riddhima highlighted the growing economic ties between Africa and India, emphasizing Africa's position as the third largest trading partner with India. The focus on Africa stems from a desire to shift global power dynamics and challenge the existing rule-based system that favors the north over the south. Under Modi's ambitious foreign policy, India has prioritized engagement with Africa, evident through initiatives like the Focus Africa program commissioned by the government. India has supported Africa's participation in global forums like BRICS and the G20, enhancing trade collaborations. The trade dynamics between India and Africa are extensive, with India importing raw materials and gold from Africa while exporting pharmaceutical products, automobiles, and telecommunication equipment. Bilateral trade is on the rise, expected to surpass $100 billion by 2024. India has also extended $12 billion in concessional finance to Africa, addressing critical needs for development and economic transitions. Through the Focus Africa program, Indian institutions like the Ex-Im Bank have expanded their presence in key African cities, offering financial support and investment opportunities. Modi's visits to various African countries have strengthened diplomatic ties and underscored India's commitment to fostering mutually beneficial relationships. The engagement between India and Africa is anticipated to continue growing, driven by shared economic interests and strategic collaborations. The developments in India-Africa trade relations will be closely monitored to assess the impact of Modi's third term on bilateral cooperation and economic prosperity.