India-Malawi India-Malawi 2019 | Page 9

emphasised that there are natural synergies and complementarities between the two economies and there is need to tap them for mutual benefi t and suggested that Indian companies could form partnerships in Malawi for the domestic economy and for the wider Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA). Such partnerships would result in a win-win outcome for both sides. India is Malawi’s third biggest trading partner and exports pharmaceuticals, electrical machinery, iron and steel pipes & sheets, mechanical appliances, printed books & products, and commercial vehicles to Malawi. Malawi mainly exports Pigeon Peas and other agricultural products like sugar, tea, coff ee, etc. to India. The total bilateral trade was US$ 216.05 million in 2017-18, but, Malawi being landlocked with an open border as a SADC member country, the actual trade is estimated to be much higher. Since 2008, the Government of India has extended Lines of Credit (LOC) of around US$ 156.5m for projects like the Salima Sugar Factory; 60 million litre Fuel Reserve Facilities; Cotton Ginneries; Dal Processing Plants, etc. Currently, India is executing the US$ 23.5m LOC Blantyre Water Project which is expected to be completed by June 2019. In addition, India has given a Grant of US$ 5 million in 2010 in the form of laboratory and medical equipment, tractors and agricultural equipment and donated US$ 2m as disaster relief. An LOC of US$ 10m for an International Convention Centre in Blantyre city has been converted to a Grant project. During his recent visit, the Hon’ble Vice President announced an LOC of US$ 215m for 18 water projects in Malawi and gifted medicines, cancer treatment equipment, ambulances, books, artifi cial limbs, etc. While official figures for investments by Indian companies are not available, it is estimated that around US$ 500 m have been invested in Malawi. As per an offi cial document released in April 2018, Indian private capital has a share of 19 percent and is the largest single contributor in the Malawi economy, with China being at 12 percent, Africa as a whole contributing 21 percent and the rest of the world at 48 percent. As per the report, Indian investment is also the largest contributor to the creation of private sector jobs in Malawi. There are more than 15 Indian companies present, either directly or through authorised dealers, in Malawi like Tata, Ashok Leyland, Bharti Airtel, Bajaj Auto, TVS, Atul Auto, Eicher, Mahindra, Kirloskar generators, Escorts, Godrej, Su Kam inverters, Shakti Pumps, Sonalika Tractors, etc. Some Indian companies are involved in road infrastructure projects as consultants and Larsen & Toubro & Kalpataru are involved in the upgradation of electrical infrastructure under a US funded project in Malawi. There is scope for enhancing trade and for investments in the fi elds of mining of coal and rare earth minerals, equipment manufacture, information technology, auto parts, transport, pharmaceuticals, defence production, agriculture, irrigation, food processing, health, education, power generation, especially renewable energy including solar. The SMEs sector in India has been growing and been active in frugal innovation in recent years and SMEs in both countries could form collaborative partnerships in areas of mutual interest. The strong developmental, economic and commercial ties have created a constituency of trust and friendship between India and Malawi. Malawi has been supportive of India’s position on the expansion of the UN and conveyed support to the G4 initiative for expansion of the UNSC but it would abide by the decision taken by the African Union with regard to the UN reforms. Malawi was among the early signatories of, and ratifi ed, the International Solar Alliance (ISA) Framework Agreement in November 2017. The Minister for Natural Resources, Energy and Mining, Hon. Aggrey Masi, represented Malawi at the ISA Founding Conference on 11 March 2018 in New Delhi. India and Malawi have built a stable developmental, economic and strategic partnership which ensures that mutual interests are safeguarded and both countries are on the same page on major international and multilateral issues including in achieving the Sustainable Development Goals (SDGs). For India, Malawi is an integral component of its extended neighbourhood and the enhanced partnership with Malawi, under the overall thrust towards Africa, is a link in the chain that India should endeavour to build, to ensure sustainable development and security, including maritime security, in the region. * The author is former Indian Ambassador to Madagascar and Comoros 2019 • INDIA-MALAWI • 9