Why in the News?

Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.

What are the strategic objectives of India in West Africa?

• Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
• Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
• Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
• Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.

How does India plan to enhance its economic ties with West African countries?

• Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
• Sectoral Collaboration: The focus areas for economic collaboration include defence, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
• Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
• Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.

What challenges does India face in its engagement with West Africa?

• Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
• Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
• Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
• Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.

Way forward: 

• Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
• Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.

Mains PYQ:

Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)

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