Business News of 2014-01-28

India targets trade growth to boost economic linkages

The Indian High Commission says it hopes to use further growth in trade and investment to boost economic linkages between Ghana and India.

“In recent times, Ghana’s economy has been on an upward swing. The peaceful and stable political conditions in Ghana have enhanced its credibility as an attractive investment destination,” High Commissioner Shri K Jeeva Sagar told the B&FT in an interview.

A number of business delegations from India have been visiting Ghana every year -- and trade between the two countries has remained above US$1billion over the last two years, he said.

Investments by Indian companies span sectors such as steel, cement, plastics, pharmaceuticals, ICT, and agro-processing. Data from the Ghana Investment Promotion Centre (GIPC) indicate that about 579 Indian projects were registered in the country between 1994 and June 2013, with an investment value of more than US$700million. GIPC also ranked India ninth in terms of value of foreign direct investment and second in terms of number of registered projects.

Indian companies present in Ghana include Tata, Ashok Leyland and Mahindra & Mahindra, all automobile manufacturers; Bharti Airtel, the telecoms giant; and NIIT, the ICT school and company.

“Many Indian investors are desirous of replicating the growth story of India in other parts of the globe, including in developing countries. As Ghana is a stable economy with very good growth prospects, investors, including from the education sector, find it very attractive to invest here,” Mr. Sagar said.

India has also extended credit facilities to Ghana for various developmental projects under the Government of India-supported Lines of Credit (LOC) through the EXIM Bank of India. While some of the projects have already been completed, others are at various stages of execution and approval.

According to Mr. Sagar, the projects already implemented include those relating to areas such as rural electrification, agriculture and transportation, construction of a presidential complex, supply of railway equipment, an agro-processing plant and waste management facilities.

He added: “From the very beginning, India has been contributing to human resource development in Ghana through various bilateral and multilateral programmes run by different departments/institutions and sponsored by the Government of India under the Indian Technical & Economic Cooperation (ITEC), Special Commonwealth African Assistance Plan (SCAAP), and India Africa Forum Summits (IAFS)”.

Source: B&FT
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