India and Africa cosy up as trade and politics top agenda

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Hosting leaders from more than a dozen African nations as it tries to emerge from China's shadow on the continent, India is expected to offer its skills in low-cost services and industry in return for access to rich natural resources and food supplies.

But Prime Minister Manmohan Singh was clearly also eyeing political benefits, with India pursuing a seat on any expanded United Nations Security Council to match its growing economic clout in Asia and beyond.

"No one understands better than India and Africa the imperative need for global institutions to reflect current realities and to build a more equitable global economy and polity," he told assembled heads of state and ministers, among them South Africa's Thabo Mbeki.

Singh said products to be covered under the new exports regime would include cotton, cocoa, aluminium and cooper ores, ready-made garments, and industrial diamonds.

"Under this scheme, India shall unilaterally provide preferential market access for exports from all the 50 least developed countries," Singh said at the inauguration of the first India-Africa summit, adding that 34 of them were in Africa.

While China has invested in countries like Sudan, where human rights concerns have curbed interest from more cautious Western countries, India enjoys historic and cultural links to several eastern and southern African nations dating back to British colonial rule, which it hopes will help it catch up.

India's trade with Africa has soared from $967 million (488 million pounds) in 1991 to $20 billion in 2006/07. But that compares unfavourably with China's trade relations with Africa which were worth less than India's in 1999, but have since leapt to $55 billion.

Singh said that over the next 5 to 6 years, India would issue grants for projects in excess of $500 million, and that developing infrastructure in the areas of railways, IT, telecoms, and power in Africa would be a priority.

"The objective of our partnership is to cooperate with all the countries of Africa, within the limits of our capacities and capabilities, in the efforts towards achieving economic vibrancy, peace, stability and self-reliance," Singh said.

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