India's total trade with the Common Market for Eastern and Southern Africa (COMESA) region has risen more than three fold and presents opportunities to further enhance the bilateral commercial relations, a study conducted by Export and Import Bank of India (EXIM) has said.
During 2009-10, the COMESA which comprises 19 countries in Eastern and Southern Africa, accounted for 38.2 per cent of India's total exports to Africa, while the region's share in the country's total imports from Africa stood at 13.1 per cent.
"India's total trade with the COMESA region has risen more than three fold from $2.55 billion in 2004-05 to $8.48 billion in 2009-10," the study findings released here said.
It noted that the COMESA region recorded robust economic performances in recent years in spite of the global financial crisis. The total trade of the region has more than doubled from $108.5 billion in 2004 to $262.6 billion in 2008 while the foreign direct investment (FDI) inflows into the COMESA increased over four folds in 2009 to $136.5 billion from $32.9 billion in 2000.
Exim Bank's latest study highlights the potential items for India's exports to the COMESA region which broadly include electrical and electronic goods, plastic and linoleum products, article of iron and steel, automotive components, petroleum products , pharmaceutical products, machinery and instruments, transport equipment, textiles and cotton fabrics and rubber as well as rubber articles.
Items which hold potential for imports from COMESA region are broadly listed as: aluminium, copper, mineral fuel, metalliferous ores and slag, coffee, resins, nuts, spices, sugar, leather, organic and inorganic chemicals and marine products.
Delineating broad strategies and recommendations to enhance and foster India's commercial relations with the COMESA region, the EXIM bank study has suggested cooperation in agricultural and natural resource development, cooperation in hotel and tourism industry, focus on ICT, human resource development, cooperation in infrastructure, banking and energy, besides broadening linkages with trade and investment promotion institutions.
"Such endeavours could also be supplemented by measures such as focus on increased participation in multilateral funded projects, setting up business hubs in the region and establishing preferential trade agreement between India and COMESA," it emphasised.