India, Mozambique to deepen economic engagement

India and Mozambique today decided to ramp up economic engagement, particularly in the energy sector with Prime Minister Narendra Modi saying the African nation can be a "large source" of coal and natural gas to drive the growth of Indian economy.
During his wide-ranging talks with President Filipe Nyusi, Modi hoped that Mozambique, with its estimated 180 trillion cubic feet of off-shore gas reserves, would provide an "encouraging environment" for Indian investments in various key areas including hydrocarbons, minerals and infrastructure.
Both sides inked an MoU on Cooperation in the field of renewable energy. The two leaders deliberated on a range of issues including cooperation in defence, maritime security in the Indian Ocean region, agriculture and ocean economy.

"Mozambique can be a large and a proximate source of natural gas, coal and other minerals that are so important to drive our growth. It also offers huge opportunities in agriculture sector," Modi said.
Calling the discussions "fruitful and positive", Nyusi said it was decided to enhance cooperation in a number of areas including oil and gas.
Trade between the two countries has multiplied five times in the last five years and the Prime Minister said he was happy that Indian investments in these sectors have grown significantly in recent years. Mozambique hosts nearly 25 per cent of Indian investments in Africa.

"We spoke of our economic synergies and cooperation. I expressed hope that Mozambique would continue to provide an encouraging environment for investments from India, including in the areas of hydrocarbons, minerals and infrastructure," he said.

Expressing strong committment to extending support to the African country in accordance with its priorities, Modi said India was "delighted to be a development partner for Mozambique in several areas, including agriculture, healthcare, energy, infrastructure and human resource development."
Referring to defence cooperation, Modi said both sides agreed to build on Nyusi's visit here as Defence Minister in 2011 and that the next meeting of the Joint Working Group on Defence Cooperation will be scheduled soon.

Since India and Mozambique have large coastlines and are linked by the Indian Ocean, ways to intensify cooperation in maritime security and ocean economy also figured during the discussions.