India launches special trade focus on African; Ghana Included

New Delhi -- India has launched special trade initiatives for the Sub-Saharan African region and the Commonwealth of Independent States (CIS) on the lines of a similar programme to boost trade with Latin America.

"The Focus Africa programme is being launched today," Commerce Minister Murasoli Maran said unveiling the EXIM (Export-Import) policy for 2002-07 here Sunday.

Focus Africa would target Ethiopia, Ghana, Kenya, Mauritius, Nigeria, South Africa and Tanzania in the first phase.

The initiative is patterned on a similar programme launched five years ago to boost trade with Latin America that increased exports to the region by 40 percent.

"There is tremendous potential for trade with the Sub-Saharan region. During 2000-01, India's total trade with the region was $3.3 billion. Of this, our exports accounted for $1.8 billion and our imports were $1.5 billion," said Maran.

Henceforth, Indian units that export in excess of Rs.50 million to Sub-Saharan countries would be classified as export houses which would grant them a host of privileges and also ease their operations.

CIS countries are also to be targeted for a special trade thrust.

"We have traditional trade ties with these countries. In 2000-01, our exports to these countries were $1.08 billion. Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Ukraine and Uzbekistan are to be the special focus in the first phase," said Maran.

Targeting to corner one percent or $80 billion of the global market by 2007, up from 0.6 percent or $46 billion currently, the EXIM policy hopes for 11.9 percent compound growth annually.

While continuing to focus on traditional markets, India now feels the need to explore new markets to boost exports, which have been hit in the wake of the global economic slowdown and the September terror strike. As a result, India might not even achieve its scaled down three percent target for 2001-02.

In a bid to reverse this trend, India has decided to set up business centres at its overseas missions to assist exporters and businessmen for a nominal fee.