Trade Relations and Infrastructure of Different Countries of the World

Published: 2021-09-13 20:55:11
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Africa- The Land of the Hand-outs
When major car manufacturers are unable to sell their products in developing countries due to various reasons such as change in taste of the consumes or defects in their manufactured products, they sell their products in Africa which is an economical solution. About half a million cars are imported by Nigeria, which is the continent’s largest economy, every year. Most of these cars are Japanese made, brands such as Honda and Toyota are now a commonplace on the country’s roads. Selling for a couple of hundred dollars or less, these cars are nearly 10 times cheaper than it’s cost which turns out to be more economical for the manufactures in developing countries like India from whose factories these cars are exported. Many Japanese car dealers in India trade slow selling cars to dealers in African markets where the demand for these cars are high. These dealers avoid selling their unsold cars in auction markets as they would be forking a part of their profits to the auction houses. If they sell a car for parts they would be losing money.
India being one of the leading countries of the world when it comes to the Intelligence Technology (IT) sector, requires a lot of computer hardware and other technology. However from time to time the demand for computer and mobile phone models diminishes in India due to introduction of new models in the market or the change in the taste of the consumers. At such times in order to move stock these products are launched into the African markets. A prime example can be seen in the case of Sony. In 2017, Sony revenue in India was Rs. 7,181.84 crore, selling products such as Bravia OLED, Playstation 4 and VPL-VZ1000ES Ultra Short Throw laser light projector. It is noticed that at the same time in most African countries products belonging to the previous years were still being launched.Trade Relations
The trade relations between india and Africa has witnessed an impressive fifteen-fold growth between 2000 and 2015, growing from USD 4.5 billion in 2000 to USD 71.5 billion in 2015. A trade target of USD 500 billion to be reached by 2020 has been set by the African leaders and indian industrialists. This trade surge is expected to be primarily led by India’s growing energy needs, since from 2005 onward India’s rapid economic growth led to huge increases in India’s imports of minerals and fuels from Africa. India continues to imports oil, coal, natural gas and uranium from Africa. The rise in crude oil imports from Africa has been accompanied by a simultaneous growth in India’s exports of refined petroleum products to Africa, largely as a result of Africa’s limited and India’s surplus refining capacity
India’s agricultural exports to Africa has increased significantly over the past few years. African countries have identified India as a major destination for cash crops. Moreover, African agricultural imports towards India are likely to get a boost in the future due to India’s Duty Free Tariff Preference (DFTP) Scheme, which gives an added advantage to imports from Africa’s Least Developed Countries (LDCs). The Joint Statement issued when the recent meeting between Japan’s Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi reiterated the resolve of the 2 countries to “develop industrial corridors and industrial network for the expansion of Asia and Africa.” India-Japan economic engagement of Africa, underneath the rubric of Asia Africa Growth passageway (AAGC), is predicated on the popularity that the centre of world economic activities is more and more shifting towards the Indo-Pacific region. India and Japan as 2 of the world’s largest democracies and economies are working together to shape the economic, political and security design of the Indo-Pacific region. The AAGC is a natural outcome of the evolving strategic partnership between India and Japan.
The AAGC Vision Document has been developed together between the Research and Information System for Developing Countries (RIS) in India, The Economic Research Institute for ASEAN and East Asia (ERIA) and also the Institute of Developing Economies and Japan External Trade Organization (IDE-JETRO). The vision document notes that the AAGC would be supported four pillars: enhancing capability and skills; quality infrastructure and institutional connectivity; development and cooperation projects; and people-to-people partnership. These principles, like quality infrastructure and people-to-people partnership, ought to be understood in an exceedingly larger political context.
Two centuries ago, the emergence of Europe as an economic power-house resulted in the colonial exploitation of Africa. China, one among the new rising powers nowadays, is usually defendant of not adopting a radically new approach to Africa. On the opposite hand, the AAGC in its conceptualisation sees Africa as a collaborator as well as an equal partner. This is often evident from the very fact that the Vision Document of the AAGC notes that the conceptualisation of the planned growth passageway are going to be conducted by constituting a joint study team with think tanks and organisations in Asia and Africa. Additionally, the vision document also states that contribution to the native society and economy will be an important facet that’s going to outline the operationalization of the economic passageway .An analogous stress might even be seen in Prime Minister Shinzo Abe’s speech, in Kenya in 2016, where he emphasized the importance of quality, resilience and stability in Japan’s engagement in Africa.
India is that the most significant pillar within the planned passageway due to historical connections, maritime closeness and associate degreed the large presence of an Indian diaspora. It has an extended history supporting anti-colonial movements in Africa and enjoys strong government-to-government relations as well. As Prime Minister Narendra Modi noted recently, India has granted thousands of scholarships to African nations underneath the ITEC programme and various current and former leaders in Africa, including military chiefs, have attended instructional and training institutions in India. These interactions provide India sizable social capital that may be leveraged. Additionally, India is looking forward to invest $10 billion in Africa in the coming future. Several of the Indian Ocean littoral African states host associate degree Indian diaspora in giant numbers. The AAGC will repose on the business networks of this Indian diaspora as well.
The AAGC can obtain to synergise 2 completely different sets of competencies of India and Japan. Japan will deploy substantial money and technological resources, and India will bring its government-to-government relations and business networks of its Diaspora to the table. The AAGC won’t be a state-funded enterprise. As scholars note the AAGC seeks to evolve supported healthy money practices with the non-public sector taking part in a predominant role. There are several reasons for the emergence of the AAGC: 1st, India and Japan cooperation, additionally to abilateral element, has currently inherited a broader third country and regional dimension, and also the AAGC may be a manifestation of such a dynamic. Second, both the countries are keen on developing economic architectures that are supported by the principles of equity and transparency. Africa, that has the potential to emerge as an economic power-house, may be a natural candidate to partner in building this new economic design. Third, the AAGC might not have been conceptualised as a as a direct response to China’s Belt and Road Initiative (BRI). However, the AAGC and BRI represent clearly divergent methodologies towards promoting property, infrastructure and native capability, and square measure so probably to impact regional government.
China’s Belt and Road Initiative (BRI), in spite of a robust maritime element, is basically a continental framework. The chance of Gwadar, Hambantota and Kyauk Phyu ports within the Indian Ocean Region evolving into vivacious and wide-ranging economic hubs appears to be restricted at the instant. Therefore, speedy operationalization and subsequent success of the AAGC can end in 2 spheres of property. China’s BRI property, which might traverse continental Asia to succeed in Europe and also the AAGC, which is able to be preponderantly maritime.
The AAGC can even explore the probabilities of building on complementarities with the G-20’s Compact with Africa (CwA). The Compact with Africa seeks to make infrastructure and promote non-public investment, and presently, shelter Côte d’Ivoire, Ethiopia, Ghana, Morocco, Rwanda, Senegal, and Tunisia have joined the initiative.in the near future, India and Japan can even work with the opposite G-20 countries in building property infrastructure supported the principles of openness, inclusivity and transparency involving the Indian Ocean littoral African States. The multiple partnerships that India and Japan are building are indicative of the growing confidence and mutual trust within the bilateral relationship. By increasing the bilateral relationship to cooperation in different regions/continents, India and Japan are operating to strengthen the multi-polarity within the world politics

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