India-east Africa Relation: an Analysis of the Economic and Political Opportunities

Abstract

India‟s East African relations date back many centuries, to the time when Indian traders began to engage with countries along the eastern coast of Africa. By the end of the 20th century, the relations between India and East African countries witnessed a new turn, with many drivers and rallying points of the 20th century such as de-colonization and racial discrimination disappearing. In this paper I have looked at how The East African region is of direct interest to India both politically and economically. India‟s trade and investment in East African countries have reached significant proportions, with India actively promoting trade with these countries. I have also analyzed the development challenges and the position of politics in the relation between the India-East Africa countries. This study has also brought out the challenges facing these ties, identifying the political relation that lies between the east Africa counties and India. All this was guided by analyzing the East Africa countries individually and how they relate to India. The study was guided by the social constructivist theory with arguments from Alexander Wendt, Martha Finnermore and Peter Katzenstein. The whole project to be successful the study put in much effort on interviews with the Indian ambassador to Kenya who was very instrumental, personnel from the ministry of foreign affairs and also secondary data. At the end of the study it was evident that in recent years, India‟s economic partnership with East African countries has been vibrant, extending beyond trade and investment to technology transfers, knowledge sharing, and skills development. The influx of Indian aid, capital and personnel also had potentially profound developmental consequences for the numerous East African countries. India is of direct interest to East Africa because of several factors. East Africa has a long Indian Diaspora heritage. The Indian Diaspora in the East African region plays a very significant role in promoting India-Africa relations. With their business ties with India and a good knowledge of Africa, Indians in East Africa have played a significant role in attracting new investments from India to the African continent. This is especially true, given that India is flush with foreign currency reserves, and the Government of India has lifted regulations and controls, to allow firms to invest and set up businesses abroad.