Authors: Ishita Paliwal & Kanishka Goyal
The India–Africa partnership, rooted in shared histories and mutual respect, has steadily matured into a transformative force within the Global South. No longer defined solely by economic cooperation, it now represents a dynamic and strategic alliance reshaping regional and global narratives. This evolution reached a defining moment with the crossing of a $100 billion trade threshold — a milestone built not on aid or dependency, but on mutual trust, innovation, and collaborative ambition.
From Shared Journeys to Strategic Alliance
The growth of India-Africa trade reflects a powerful story of two emerging regions rising together. In FY 2022-23, bilateral trade between India and Africa reached an estimated US$98 billion, registering a strong year-on-year increase. With continued momentum, it is now acknowledged that this figure has exceeded US$100 billion in FY 2024-25.
India is now Africa’s third-largest trading partner, after China and the European Union, accounting for almost 8 % of the continent’s total trade.
Energy: The Heartbeat of Cooperation
Energy remains the heartbeat of this partnership. Around 18 % of India’s crude oil imports come from African countries — mainly Nigeria, Angola and Algeria — giving India vital diversification at a time when global supply chains are under stress.
But the engagement no longer ends with crude oil or natural resources. It is rapidly expanding into renewable energy, digital trade, healthcare, and manufacturing.
Investments, Manufacturing & Local Value Creation
Over the past decade, India’s cumulative investments in Africa have exceeded US$75 billion, placing it among the continent’s top investors. Indian companies continue to strengthen local value-addition across African markets:
- Bharti Airtel connects 140 million users across 14 countries
- Tata Motors and Mahindra & Mahindra operate local assembly plants
- ONGC Videsh participates in exploration across nations such as Mozambique and Sudan.
These investments aren’t merely profit-driven — they generate employment, enhance technical expertise, and support Africa’s industrial transformation.
A Partnership Built on Equality and Empowerment
This alliance’s real strength lies in its foundation of equality and empowerment. India’s development model emphasizes capacity-building and knowledge-sharing, not aid-dependency.
Through initiatives such as the India-Africa Forum Summit (IAFS) and the Pan-African e-Network, India has:
- Trained 40,000+ African professionals
- Built 42 vocational training centers
- Extended around US$12 billion in concessional credit lines
The goal is to enable Africa to innovate and compete globally on its own terms.
Trade That Mirrors Diversity
India exports pharmaceuticals, automobiles, machinery, processed foods, and textiles to Africa while importing crude oil, gold, coal, fertilizers, and agricultural products in return.
India supplies nearly 20 % of Africa’s generic medicines, ensuring affordable access to essential healthcare. During the pandemic, India’s “Vaccine Maitri” initiative demonstrated that this partnership isn’t transactional — it reflects solidarity.
Leading Partners & Rising Players
South Africa, Nigeria, Egypt, Kenya and Tanzania remain India’s largest trade partners in Africa, collectively contributing to over 65 % of bilateral trade.
What’s most promising is the rise of emerging economies such as Ethiopia, Ghana and Rwanda, where Indian companies are pioneering new frontiers in manufacturing, fintech, renewable energy, and education.
Green, Digital & Industrial Futures Converging
India’s strength in affordable solar technology, paired with Africa’s huge renewable potential, has made the International Solar Alliance (ISA) a transformative platform. Over 36 African nations are now members, jointly working to electrify rural communities and reduce carbon dependency.
Meanwhile, India’s digital public infrastructure — Aadhaar, UPI, DigiLocker — is guiding similar transformations in Africa. Fintech and cybersecurity collaborations are expanding financial access and strengthening digital governance across the continent.
SMEs, Infrastructure & Connectivity
Indian SMEs are increasingly leveraging Africa’s expanding consumer base, especially in sectors like food-processing, healthcare, textiles, and education. Initiatives such as Focus Africa and the Africa Growth Partnership Fund enable joint ventures, local production, and technology exchange.
Strengthening logistics — through key ports like Mombasa, Durban and Djibouti — and growing air connectivity between Mumbai, Nairobi, Addis Ababa and Johannesburg have accelerated business mobility and tourism.
Talks on a potential India-Africa Free Trade Agreement could further streamline supply chains and unlock exponential growth.
A Future of Co-Owned Prosperity
As Africa advances the African Continental Free Trade Area (AfCFTA) — a market of 1.3 billion people and US$3.4 trillion GDP — India is positioning itself as a strategic partner ready to integrate into this economic transformation.
Together, India and Africa are crafting a modern blueprint for equitable globalization — driven by innovation, entrepreneurship and shared vision.
Crossing US$100 billion in trade is not the final destination — it is the first milestone in a much larger story of co-creation, where both regions rise together as equal architects of a more balanced, multipolar world economy.