Africa has reportedly become India’s second-largest borrower as the country competes with China’s massive sway in the continent.
What Happened? Over the past decade, 42 African nations have received around $32 billion (₹2.62 lakh crore) in credit from India, making up 38% of India’s total credit extension, Harsha Bangari, the managing director of India's Export Import Bank said in an interview to Bloomberg.
The bank has offered project-based credit lines worth about $12 billion (₹1 lakh crore) across Africa, she told the business publication. These credit lines have been utilized for crucial projects in healthcare, infrastructure, agriculture, and irrigation, driving a steady increase in demand from Africa.
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Despite India’s recent efforts, however, it still trails behind China, which has pledged a staggering $134.6 billion (11.06 lakh crore) to African nations over the same period.
China has also tapped Africa’s mineral resources, particularly lithium and bauxite, solidifying its presence on the continent. However, Prime Minister Narendra Modi‘s government is looking to actively strengthen ties with Africa.
India has established 18 of its 25 newest embassies and consulates in Africa. Moreover, India has used international platforms, such as its presidency of the G20 nations, to raise awareness about the debt crises in developing economies.
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