IndiaAfrica Trade Corridors: Building Supply Chains beyond Raw Materials

Introduction: A New Phase in India-Africa Economic Engagement

- By Dr. Bidisha Bhattacharya

India and Africa's partnership has long been rooted in the shared histories of colonialism, solidarity through the Non-Aligned Movement, and postcolonial cooperation. However, their economic ties, although growing, have historically remained tethered to the exchange of raw materials. Indian imports from Africa have been dominated by crude oil, gold, and coal, whereas Indian exports have focused on low-to medium-value manufactured goods such as refined petroleum, pharmaceuticals, and vehicles.

This raw-materials-first model of trade is no longer tenable in a world that is reconfiguring its supply chains. As both regions aim to foster economic self-reliance, technological advancement, and industrial growth, their trade relationships must transition from transactional extraction to strategic co-development. The African Continental Free Trade Area (AfCFTA) and India's recalibrated Foreign Trade Policy offer a timely platform to build robust India-Africa economic corridors that go beyond commodities and into integrated, future-ready value chains.

Current Trade Dynamics: Still Raw, Still Fragmented

India-Africa trade stood at USD 98.3 billion in FY 2022-23, a significant rebound from the pandemic-era lows, though still short of its peak in 2014-15 (USD 103 billion) (Ministry of Commerce and Industry, 2023). Despite this resurgence, the composition of trade remains lopsided. Nearly 60% of India's imports from Africa comprise crude petroleum, gold, and coal, with Nigeria, Angola, and South Africa as the top suppliers (EXIM Bank of India, 2023).