GOVERNMENT TO INCREASE OUTLAY FOR FOCUS AFRICA PROGRAMME IN NEXT
FINANCIAL YEAR- RUDY
Date : 15 Nov 2002
Location : New Delhi
Keeping in view the immense success of the Focus Africa Programme during the current financial year, the government has proposed to increase the outlay during the next financial year. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, stated this here today, while inaugurating the seminar titled "Export Potential Study of Focus African Countries based on Bilateral and Global Trade Statistics of India and Sub Saharan Region". The government has already sanctioned about Rs. 20 million to various councils/ organisations for undertaking various export promotion activities during the current financial year, Shri Rudy said. Shri L. Mansingh, Director General of Foreign Trade, was also present in the seminar along with heads of Missions of Sub Saharan countries and representatives of the trade & industry.
Shri Rudy informed that the EXIM Bank had so far extended 28 lines of credit (LOC’s) for an aggregate value of Rs. 414 crore to enhance the trade with Sub Saharan countries. MOUs are being finalised with these countries on technical assistance and cooperation in several sectors- Water Resources with Ethiopia, Health & Pharma with South Africa, he added. India’s exports to Sub Saharan Africa region during the first four months of this financial year (April-July 2002) increased to US$ 700 million from last year’s US$ 645 million showing a growth of 8.6%.
The study conduced by National Centre for Trade Information (NCTI) shows that India has a good potential for increasing its market share in Sub Saharan region for Chemicals specially pharmaceuticals, Food articles, Paper products & Engineering goods including vehicles, Iron & Steel articles etc. It shows that Apparels, Coir Floor Coverings, semi-milled rice; Footwear uppers and Diamonds are the items where India possesses a high revealed comparative advantage.
The study aims at determining the global import trend of commodities by the countries under focus while identifying the potential product groups, major supplier countries and India’s position. The study goes on to map the imports of specific products at the 6 digit HS Code level and matches the same with India’s export capabilities to arrive at a specific product basket which has a high export potential from India to each of the countries under study. The seven Focus countries in the Sub Saharan region include Ethiopia, Ghana, Kenya, Mauritius, Nigeria, South Africa and Tanzania.