India-Africa Trade: A USD 100 Billion Opportunity Being Underexploited

India-Africa trade has grown from approximately USD 25 billion in 2005 to approximately USD 100 billion in FY2025. Yet the relationship remains underdeveloped relative to its potential: India exports to Africa are approximately USD 50 billion — less than 12% of India total exports — despite Africa 1.4 billion population and rapidly growing middle class.

India structural advantages in Africa: (1) Pharma: India supplies 60% plus of Africa generic medicine needs through WHO pre-qualified manufacturers; (2) FMCG: Indian FMCG companies (Dabur, Marico, Godrej Consumer Products) have significant African presence with tailored products; (3) Engineering: Indian construction companies and engineering goods manufacturers are active across East and West Africa; (4) Indian diaspora: approximately 3 million people of Indian origin in Africa (Kenya, South Africa, Tanzania, Mauritius, Ethiopia) provide commercial bridges and distribution networks.

The AfCFTA game changer: The African Continental Free Trade Area — in force since 2021 across 55 member states — aims to eliminate 90% of tariffs and create a single African market. For Indian exporters: establishing a manufacturing or distribution hub in one AfCFTA member state provides preferential access to other AfCFTA members. India-Mauritius CECPA makes Mauritius an ideal India-AfCFTA gateway — Indian goods enter Mauritius at 0% duty and can then enter other AfCFTA markets at AfCFTA preferential rates.