Opportunity for win-win relationship

Indian trade with Africa, which can be traced back to the Bronze Age, is being revitalised as part of the government’s strategic investment in trade corridors. Africa currently imports around $430 billion worth of goods, with India accounting for 6.5% of that total, exporting $28bn in goods to the continent. The modern focus is on integrated logistics and trade platforms and strategic port investments. In 2017, India and Japan established the Asia-Africa Growth Corridor (AAGC). It connects the Yokohama and Tokyo ports in Japan and Mumbai in India with Dar es Salaam. According to Prithvi Gupta from the Observer Research Foundation, development of the corridor stalled with a change of government in Japan. He argues that the AAGC should be revitalised to counter increasing Chinese and Russian influence in Africa. “With India and Japan now being part of new routes connecting Asia to Europe via the Middle East, Africa is being largely overlooked, which could weaken their partnerships with African countries,” he warns. India is leveraging digital technology to open up African markets. Launched in 2025 by DP World in collaboration with the Indian government, the Bharat Africa Setu gives Indian exporters access to 53 African countries and 260 000 points of sale through the DP World trade ecosystem. The company operates 10 ports and terminals, three economic zones, and more than 200 warehouses across Africa. With the Bharat Africa Setu initiative, that figure is expected to rise to 12% by 2030, according to a joint statement at the launch of the platform. Indian exporters are supported by the government’s foreign trade policy (FTP 2025). The private sector is helping establish corridors through investment in logistics infrastructure. In May 2024 Adani Ports signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam port, Tanzania. The biggest opportunity for increasing trade lies in India moving away from the usual extractive model to helping African countries add value at source, says Bidisha Bhattacharya. The author is a senior research consultant at the Chintan Research Foundation. “India and Africa are uniquely positioned to build a South- South trade model that goes beyond the extractive legacy of North-South trade. “The combination of AfCFTA’s (African Continental Free Trade Area) integration momentum and India’s development- centric trade strategy can lay the foundation for robust, diversified, and future-ready economic corridors. “To do so, both regions must invest in physical and digital connectivity, incentivise co-production, and foster institutional frameworks for sustained and inclusive trade. “The age of transactional trade must give way to transformative partnerships,” she says. ER