Symposium on Ethio-India: 60 Years of Friendship

29 April, 2008, Addis Ababa

Address by H.E. Mr. Gurjit Singh, Ambassador of India

            As India and Ethiopia commemorate 60 years of friendship this year we look back with satisfaction and look ahead with immense optimism.           

Introduction

            60 years ago soon after India’s independence India’s first Prime Minister and Foreign Minister, Pandit Jawaharlal Nehru deputed a goodwill delegation led by Sardar Sant Singh to visit Ethiopia and establish diplomatic relations between our two countries.  This was a rather unique way in which diplomatic relations were established since, instead of waiting for the processes for establishing a legation and later a diplomatic mission, the Government of free India decided to bring a formal bilateral engagement into existence to cap a centuries old vibrant relationship which focused on people-to-people contacts, trade and cultural exchanges.  Today as we have entered the 21^st century as per the Ethiopian calendar and mark the Ethiopian Millennium along with our 60^th anniversary we can take satisfaction that the new tree of friendship planted in 1948 has born immense and satisfying fruit.

The Goodwill Mission

            According to the Report of the Indian Goodwill Mission to Ethiopia in September 1948, the delegation consisted of Sardar Sant Singh as the leader, Mrs. Ammu Swaminathan and Mr. Devji Rattansi, as members and 3 officials.  Sardar Sant Singh was a former member of the Indian legislature and Leader of the Opposition for 8 years.  He was a member of the Indian Bar, the Federal Court of India and the High Court of East Punjab.  He had been the President of the Postal and Telegraphic Union of India among other labour organizations and was the President of the Sikh Nationalist Party of India.  His selection to lead the Goodwill Mission by Pandit Jawaharlal Nehru was a forerunner of his appointment as the first Ambassador of India to Ethiopia two years later.  Mrs. Ammu Swaminathan was also a member of the Indian legislature and a member of the Constituent Assembly of India.  She was a founder Vice President of the All India Women’s Conference.  Mr. Devji Rattansi was the President of the Grain and Oilseeds Merchants’ Association of Bombay and the President of the District Congress Committee.  Thus, the delegation was a high powered one having high ranking political members as well as a commercial representative.

Support to Ethiopia

            India’s view of Ethiopia at that time was largely based on Pandit Nehru’s assessment of the situation from the time that Ethiopia was invaded.   Sardar Sant Singh during his visit to Ethiopia had noted “Unprovoked aggression on the freedom of Ethiopia …, when complete subjugation threatened its people, found strong reaction amongst the people of India in support of the Ethiopian cause”.  In fact, the Indian National Congress at that time, which was challenging the British empire for independence, decided to observe 9^th May, 1936 as Ethiopia Day throughout India.  This led to a protest by the Italian Consul General in Calcutta to Pandit Nehru who was the President of the Congress for that year and Pandit Nehru’s rejoinder to that said “Where imperialism appears, in whatever guise it might be, it is the opponent of the forces struggling for freedom and we have to oppose it.  Imperialism goes to exploit and remains to exploit, and the people under its heels sink materially and spiritually”.  Following this, popular reaction to the Ethiopia Day on 9^th May, 1936 found an echo in the legislature when it recommended to the British Governor General in Council to withdraw India from the membership of the League of Nations and to halt contributions to the League as a protest against the League’s attitude towards Ethiopia and its inability to protect a member from aggression.  Of course, at that time India was a British colony and this echo was the expression of a popular sentiment. 

            This Symposium today is being held on an auspicious time because we have just concluded the India-Africa Forum Summit and we were delighted to have the honour of receiving H.E. Ato Meles Zenawi, Prime Minister of the Federal Democratic Republic of Ethiopia and Your Excellency Ato Seyoum Mesfin, the Foreign Minister of the Federal Democratic Republic of Ethiopia.  This was an occasion to add greater momentum to our bilateral relationship and use it as a lever to accelerate the enhanced engagement of India and Africa. 

Delhi Declaration

Significantly, the Delhi Declaration states “We recognize that Africa and India have undergone enormous positive changes, in particular over the last two and half decades, and that Africa and India have historically been close allies in the struggle for independence, equality, human rights, freedom and democracy. We are neighbours across the Indian Ocean. We note that there has been significant positive transformation of the political, economic and social environment in Africa and the strengthening of democracy,…”. 

Further, “This partnership will be based on the fundamental principles of equality, mutual respect, and understanding between our peoples for our mutual benefit.

Some of the salient announcements made by the Prime Minister of India, H.E. Dr. Manmohan Singh at the India-Africa Forum Summit included: duty-free and quota-free access to LDCs, 34 of which are in Africa including Ethiopia; an increase in lines of credit from India to Africa to $5.4 billion over five years; enhancement of the funds for grant projects in Africa to $500 million; the doubling of scholarships and a 50% increase in capacity building slots and the establishment of an India-Africa Volunteer Corps.  This was part of our efforts to create a new architecture for engagement with Africa in the 21^st century and we expect Ethiopia to be a lead player in this. 

            In many ways the added vigour to the India-Africa relationship has been tested in the crucible of India-Ethiopia relations in the last few years.  In some ways Ethiopia has been a laboratory for implementing many of the ideas that India has for Africa and which find reflection in the Delhi Declaration.  It is a tribute to the Government and people of Ethiopia that they were receptive to these ideas and engaged with us fully at all levels so that a diversified and intensified relationship could develop. 

Your Excellencies, Ladies & Gentlemen,

            India and Ethiopia at 60 is an important milestone and when we look at this relationship I would like to highlight a few aspects of it since many of the experts would be speaking in detail about their allotted subjects.

Governmental Relations

            Our inter-governmental relations have never been better.  The Prime Minister of India, H.E. Dr. Manmohan Singh in his meeting with Prime Minister Meles on 9^th April enunciated this clearly and said that our cooperation with Ethiopia is clearly emerging and will go ahead much faster and deeper.  Similar sentiments were exchanged in the meeting that Your Excellency had with Minister for External Affairs of India, H.E. Mr. Pranab Mukherjee, who recalled his maiden visit to Ethiopia in July 2007 as one of the warmest and friendliest visits he had had in his years.  This exchange of high level visits has provided the impetus to create a new paradigm of cooperation and has filled the vacuum which existed for several years.  This mutual engagement by the leaderships of both countries is, therefore, one of the most significant developments that we can be proud of as our relationship turns sixty.

            We have signed several agreements last year during the visit of the Minister for External Affairs of India to Ethiopia and among them is the establishment of a Joint Commission which will review our entire relationship periodically and provide governmental support and momentum.  The new avenues of institutionalized cooperation in science & technology, in climate change, in investment promotion and protection and development of trade and civil aviation are among other significant features of our current relationship.  In the last three years we have had nearly 15 ministerial delegations from Ethiopia to India.  In return, 5 Indian ministerial delegations have visited Ethiopia including the first ever visit by the Minister for External Affairs of India to Ethiopia in July 2007.  Prime Minister Meles visited India twice in the last few months, in November for the International Conference on Federalism and in April 2008 for the India-Africa Forum Summit.  On both occasions he had extensive meetings with the Indian leadership.

Economic Relations

            I would now like to turn to the economic dimension of our relationship which has become the locomotive for our enhanced bilateral relationship.  The significance of the fact that over 1.8 billion dollars of private Indian investment largely from small and medium enterprises has chosen to come to Ethiopia is not lost in India.  This immense surge of private sector investment into Ethiopia has changed the image of Ethiopia in the Indian mind.  It is now seen as a land of opportunity which welcomes Indian investors and provides a positive investment ambience.  Similarly, the Government of India has strongly supported Ethiopia’s development goals by providing concessional lines of credit for rural electrification and the expansion of the sugar industry which is expected to generate nearly 100,000 new jobs, create infrastructure and provide greater momentum to Ethiopian exports of sugar and power thus strengthening Ethiopia’s foreign exchange earning capacity.  The significance of the fact that never before this, had India offered such a large amount of credit to any single country but did so in Ethiopia was a tribute to our political understanding, our recognition of Ethiopia’s commitment to its development and in turn India’s own commitment at the governmental level to Ethiopian developmental goals.  This joint mix of governmental and private sector economic engagement with Ethiopia is a new dimension which has not been seen in our mutual history before and consolidates our friendship in a significant manner.  Further, a nurturing of our economic relations, timely implementation of projects, facilitation of Indian investors and their requirements would contribute to further expansion in this sector which will bring mutual benefit as India’s industry and entrepreneurs look abroad for greater opportunities.

Human Resource Development and Capacity Building

            Another area of our collaboration is human resource development and capacity building.  Indian teachers have been known in Ethiopia for teaching a generation of Ethiopians who occupy decision making positions today.  As Ethiopian capacities in this area increase Indian professors have taught at Ethiopian universities in large numbers.  Seeing the expansion of education institutions in Ethiopia and the desire to have a greater number of post-graduates and doctoral candidates it was not merely coincidental that the pilot project of the Pan-African e-Network was successfully implemented in Ethiopia and inaugurated last year.  The significance of having one Indian university teaching at two Ethiopian universities at the same time for a MBA course or the tele-medicine component which links an Indian hospital for specialists consultation with Ethiopian hospitals have opened various areas of cooperation which we are happy to know that both the governmental and private sectors in Ethiopia are now ready to tap, through an expansion programme.  The decision of the Ethiopian government to establish centres of excellence would emulate the tested technology of the e-network project’s tele-education component whereas several hospitals are interested in expanding the tele-medicine network which is attracting a lot of media attention these days. 

Through these, the aim of the Indian experiment is to provide Ethiopia and its people with adequate equipment and training programmes to build human capacities so that their ability to manage these new facilities and provide their own software after short training programmes can be increased.  This will remain the significant aspect of our overall cooperative relationship where there is mutual recognition of our role in the world and in our region, of the challenges which face us and the need for building up of our own capacities human, fiscal and institutional will go a long way in contributing to the achievement of our developmental goals.

            Besides putting the ITEC Programme to immense use and its expansion since the visit of the Minister of External Affairs of India last year we have had several other capacity building programmes in a variety of fields.  These include the important cooperative programme in Parliament both for supporting its building as an institution and for the training of its members to become effective parliamentarians.  Similarly, we have worked with women’s groups, youth and young designers to enhance our people-to-people contact and provide them with an exposure to the Indian development experience in these fields including that of building indigenous capacity and enhancing their own empowerment. 

Defence

            One of the earliest collaborations which India and Ethiopia undertook was the establishment of the Harar Military Academy.  In its time it was the premier training institution in Africa.  At present we are offering support to train peacekeepers from Ethiopia under our bilateral programme and the Memorandum of Understanding on Police Training between the Guru Nanak Dev University and the Ethiopian Police College Sandefa is also due for intensive implementation.  India’s long history of successful peacekeeping in Africa has also seen the presence of the most decorated Indian battalions participating in UN peacekeeping operations under UNMEE for the last seven years.  At present these forces exist only on the Ethiopian side.  I would like to take this occasion to thank the Government and people of Ethiopia for the warmth and cordiality with which they have received, supported and praised the Indian contingent under UNMEE in Ethiopia.  I am sure that the several battalions which have served in Ethiopia would remember with great fondness their stay at Adigrat and also at Humera. 

International Issues

Pandit Nehru in his autobiography wrote about how events which seem distant from India affected him and he realized that no country lived alone in this world.  He wrote “as peace was said to be indivisible in the present day world so also freedom was indivisible, and the world could not continue for long part free, part unfree”.  He also wrote in the Discovery of India that in the future after World War II the role of Asia and Africa was certainly to be enhanced.  It is the same aspiration which guides us today to jointly secure for India and Africa their due place in international organizations particularly as permanent members of the UN Security Council so that our commitment to peace, security and development of the world can be given full play.

Excellencies, Ladies & Gentlemen,

            India and Ethiopia have pledged together ever since we associated as sovereign nations to make the world order more just and equitable.  We are committed to multilateralism and to strengthening the democratic structure of the United Nations and we will work together for reforms in the Bretton Woods Institutions, for a more equitable and development oriented agenda in the WTO and in the growing challenge of climate change.  We intend to work together to mitigate the effects of climate change and emphasise the need for equitable and fair burden sharing which must take into account historical emissions, cost-effective transfer of advanced technologies and the provision of additional resources.  Similarly, the fight against terrorism, against illicit trafficking in small arms, against drugs and on the constructive side on the promotion of pluralism and democracy, the pursuit of sustainable development and poverty alleviation and the fight against diseases, all provide areas for our mutual engagement to develop our countries, enhance our engagement and overcome the challenges both domestic and external for our societies.     

When we look to the future I think there are two things which will significantly determine any enhanced engagement of India and Ethiopia.  The first is if Bollywood films could be shot in some beautiful locales in Ethiopia and show Ethiopia to the Indian public at large in all its resplendent beauty.  The second is if Ethiopia starts playing cricket and joins the huge media attention that cricket attracts in India.  If we can achieve these two things in the near future I am sure our process of enhancing the engagement between India and Ethiopia would be wonderfully served. 

To conclude I would like to quote from India’s Nobel Laureate Poet Rabindranath Tagore:

“Thou hast made me known to friends whom I knew not.  Thou hast given me seats in homes not my own.  Thou hast brought the distant near and made a brother of the stranger.”

Gitanjali, Stanza 63

This is the tribute I would like to pay the Government and people of Ethiopia for the friendship with the Government and people of India.

* * * * * * *   

Remarks by H.E. Mr. Gurjit Singh, Ambassador of India

during India Day Celebration

at the

12^th Addis Chamber International Trade Fair

 22^nd February, 2008

Your Excellency Ato Newai Gebre-ab,

Economic Adviser to the Prime Minister

Your Excellency Mr. Ahmed Tusa,

State Minister of Trade & Industry

My dear friend Ato Eyessus W. Zafu,

President of the Addis Ababa Chamber of Commerce & Sectoral Associations

Mr. Gurpal Singh,

Deputy Director General, CII

Participants in the Trade Fair

Ladies & Gentlemen

            It gives me immense pleasure to start the proceedings of this India Day celebration at the Millennium Addis Chamber International Trade Fair.  Significantly, this is also the flagship business effort for this year in which we commemorate the 60^th anniversary of the establishment of diplomatic relations between India and Ethiopia.

            Our participation here today in such large numbers is the largest Indian business exposition effort in Ethiopia.  I wish to personally thank the Confederation of Indian Industry, the India Trade Promotion Organisation, the Chemicals Export Promotion Council and the Plastic Export Promotion Council for their efforts in making this happen.  The true significance of this is that while we have excellent Government-to-Government relations we are now building new bridges at a people-to-people level and bringing together the private sectors of India and Ethiopia.  This trade fair is a big leap forward in this direction since we also want to expand the private sector linkages between India and Ethiopia and to contribute to the growing economic engagement between our two countries. 

Your Excellencies, Ladies and Gentlemen,

            It is now well known that private Indian investment in Ethiopia has crossed US$ one billion.  Significant increases have come in the last one year.  Similarly, at the governmental level concessional lines of credit have supported rural electrification plans of Ethiopia as well as provided a large support to the development of the sugar industry in Ethiopia.  In both these cases there is a real public private partnership since we have Government of India lines of credit through the Exim Bank supporting the plans of public companies in Ethiopia through implementation by the Indian private sector. 

            During the visit of H.E. Ato Girma Birru, Minister of Trade and Industry to India last year it had been decided in a meeting with Indian Minister of Commerce and Industry H.E. Mr. Kamal Nath that we would have a target of bilateral trade of $500 million by 2010.  We are seeing a surge of Indian exports to Ethiopia with a total figure crossing $300 million.  This is because the economic expansion of Ethiopia sees public and private companies in Ethiopia look at Indian sources for cost effective supplies of goods and services.  This treatment of India as a partner of choice has given us a growing trade relationship between Ethiopia and India.  Significantly, the reverse, the Ethiopian exports to India have not happened and in fact have stagnated.  We have contributed through bringing Indian delegations in select areas to look at opportunities for sourcing from Ethiopia and I believe that greater effort is required by Ethiopian enterprises and promotional bodies to tap the large and growing Indian market so that the Ethiopian contribution to the development of bilateral trade could also increase.  Otherwise, we may end up achieving the target of $500 million nearly from Indian exports alone and that, Ladies and Gentlemen, is not an objective that I cherish.  I invite Ethiopian businessmen to visit India to look at the opportunities and this year alone we have sponsored nearly 15 businessmen to visit various Indian trade fairs and buyer-seller meets to look at such opportunities.  I would encourage the public institutions of Ethiopia to undertake a similar exercise.  At the same time, these efforts may also lead to the further attraction of Indian investment which contributes to the economic development of Ethiopia.

            I would like to thank all Indian participants at this trade fair and wish them success and once again I would reiterate my gratitude to the Confederation of Indian Industry, the India Trade Promotion Organisation, the Chemicals Export Promotion Council and the Plastic Export Promotion Council for their participation.

* * * * *

Inauguration of the Trade Fair of India in Djibouti

Remarks by H.E. Mr. Gurjit Singh, Ambassador of India

Your Excellency Mr. Rifki Abdoulkader Bamakhrama, Minister of Trade, Industry & Craft

Dignitaries,

Ladies & Gentlemen,

            It gives me great pleasure to be among you today to inaugurate the first Indian Trade Fair in Djibouti.  It is a matter of significance that this Fair is being held today and is a tribute to the growing economic relationship between India and Djibouti.  It is also a tribute to the growing importance of Djibouti for economic interaction and the growing trade, FDI and enhancement of economic cooperation that Djibouti shows with the world, particularly with Asia, encourages us.

            India considers Djibouti an important partner in the Horn of Africa.  Our growing economic relationship with Ethiopia naturally has Djibouti as an important asset in this relationship.  The development of the port and other facilitating services in Djibouti contributes to India’s engagement with the Horn of Africa.

            India has provided US$20 million line of credit to support the Ali Sabieh Cement Plant and we hope for its early conclusion so that the creation of productive assets, which is a goal India shares in its cooperation with Africa, can be fulfilled.  Similarly, Djibouti has signed the bilateral agreement for the Pan-African e-Network project and shortly the equipment would start arriving in Djibouti to establish a tele-medicine and tele-education centre to connect it with Indian universities and hospitals.  Our bilateral trade has also risen by 72% in 2006 and 45% in 2007 and it is today about US$310 million.  This is indeed a significant enhancement and we are happy at the growth of our relationship with Djibouti.

            In my frequent visits to Djibouti I have found a sea change taking place and we welcome this change and we commit India to a close engagement with Djibouti.

            I would like to compliment ASSOCHAM, a leading Indian Chamber of Commerce for taking the initiative and organising this exhibition.  I wish the participants all success and I hope the Djiboutian entrepreneurs would take note of this exhibition and establish closer relationships in the private sector.

* * * * *

Signing Ceremony of Tendaho & Fincha Sugar Factories

January 10, 2008

Remarks by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia

            It is a proud day for India and Ethiopia as we start 2008 with a sweet function.

            2008 is the year in which India and Ethiopia celebrate the 60^th anniversary of the establishment of diplomatic relations.  It is a long time for young states but a short time for ancient civilisations.

            We bring today the fruits of South-South Cooperation in a meaningful manner.  India’s commitment to support the development of Ethiopia is fulsome and meaningful.  Our commitment to provide a line of credit of up to US$640 million over a period of five years to support the sugar industry in Ethiopia is the largest ever line of credit that India has ever provided to any country so far.  This year the commitment is to provide $122 million and further amounts will be progressively disbursed over the next four years.

            India’s engagement with Ethiopia is historic but what is new in the new Ethiopian Millennium is the diversity and substance that has been added.  The first ever visit by a Minister of Foreign Affairs of India, H.E. Mr. Pranab Mukherjee, to Ethiopia took place in July.  H.E. Prime Minister Meles Zenawi visited India in November and these visits have added a new momentum to our bilateral relations.  Besides the line of credit Indian investment in Ethiopia is also booming and has now crossed $1 billion.  Our capacity building support to Ethiopia has also more than doubled and is including newer areas of support.

            The sugar industry is important because India has the right technology and a successful experience which it is willing to share.  The sugar industry brings together the important element of agricultural processing and links the farmer, the manufacturing industry and exports.  We believe that this would be a true support to Ethiopia’s Agricultural Led Development Initiative and would provide strong support for the creation of employment, earning of foreign exchange and enhancing the agricultural and manufacturing capacities.  The creation of such large assets also helps in the development of a service industry and we remain hopeful that this collaboration between India and Ethiopia in which the Indian private sector is the fulsome partner would take us a long way ahead.

            I would like to congratulate and compliment the Overseas Infrastructure Alliance (India) Pvt. Ltd for their commitment and positive intent towards this project and we wish them all success in completing it efficiently.  My good wishes also to the Chairman and General Managers and all staff members of the Tendaho and Fincha Sugar Factories.  I would also like to personally thank H.E. Ato Girma Birru and H.E. Ato Sufian Ahmed for their support in getting this process to its logical conclusion.

* * * * *

Statement by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia and Djibouti and Representative of India to the African Union and the UNECA

at the

Goethe-Institute Addis Abeba Gebrekristos Desta Center

11 December, 2007

Democracy and the Social Question: A Stuffed Parantha

[A parantha is a traditional Indian flour-based food.  It is a double layered leveled bread and normal stuffing is spicy potatoes or other vegetables e.g. radish, cauliflower, ricotta cheese, etc.  The twin pieces of bread are standard.  The variety of taste comes from the stuffing and its spicy content].

            “To bring freedom and opportunity to the common man, to the peasants and workers of India; to fight and end poverty and ignorance and disease; to build up a prosperous, democratic and progressive nation, and to create social, economic and political institutions which will ensure justice and fullness of life to every man and woman.”

Jawaharlal Nehru (A Vision for India)

            Democracy among all political systems is considered the best because it allows the opportunity for all people to participate in decision making.  Thus it provides for opportunity, participation and responsibility.  Unless all three of these taken together are implemented well a real democracy does not function.

            In traditional democratic terms there were three estates of democracy.  In a more modern sense I would say the five pillars of democracy are parliament, judiciary, media, the universities and civil society.  Underlying all these is an independent civil service, military, regional and local institutions and the like.  In short the institutions of State besides the five pillars of democracy need to be strong and independent. 

            Among the five pillars there is an evolving social question which means that changes in society based on political or economic evolution, empowerment and marginalization all play a role and I would like to look at some of these crosscutting issues of the social impact of change on the five pillars of democracy.  When you consider a vast and diverse country like India it is difficult to restrict our discussion or to say that one view is right.  In fact it is often said about India that everything one may say about is the reality, the opposite could be equally true!

            Thus I would like to look at a few issues from a socioeconomic and political view point and look at their impact on the institutions of democracy.  These issues are: growth of population; the resurgence of social and regional groupings; emergence of civil society particularly local governance institutions; enhanced role of youth and women.

Population

            Where population is concerned, India is the second largest country in the world and would in the next generation perhaps overtake China.  This huge population was earlier considered only a liability but due to the economic transformation and growth in India large segments of the population, particularly the middle class of nearly 400 million is considered an asset as a huge market and consumption base.  The challenge of the nearly 200 million people in and around the poverty line is a different one and thus has a tremendous impact on political developments in India.  For instance, the growth of a middle class has sustained and strengthened Indian democracy as well as the Indian economy.  Countries in our neighbourhood which did not have a large middle class have been less than successful in maintaining democracy.  On the other hand, the growing challenge of a large number of poor people coexisting with a greatly progressive India provides a political challenge to the democratic institutions and in an election the anti-incumbency syndrome fuelled by the unfulfilled hopes of the people plays a significant role in creating changes of government.  These population shifts have contributed to make India transform from a single dominant political party system in the first 20 years of our independence to an era of political coalitions which continues even today. 

            Another impact that population has is on the constituencies and their numbers.  As per our population policy of 1971, the seats in the Lower House of Parliament were frozen at 540 and the constituencies were also frozen.  The original idea of the Constitution and the Peoples Representation Act, 1951 was that each constituency for Parliament should have about 150,000 voters but today we have some constituencies with more than 2.3 million to 150,000 because no fresh delimitation has been done in the last 35 years.  Now the interesting social fact is that some of the states in India particularly in the South have vigorously implemented the population policy and are expecting lower rates of growth of population in the present generation.  On the other hand some of the North Indian states have not been so circumspect and have higher rates of growth of population.   In view of this if a fresh delimitation of constituencies was to be undertaken by looking at current population levels, the regional balance which has been maintained since 1971 about representation in Parliament from each state would indicate a lot of change because of the varied population growth patterns in the country.  The largest Indian state at present has a population of about 120 million and 80 seats in parliament.  This state has always been critical to government formation in New Delhi.  If a larger population in that State was to lead to a larger number of seats its role would go up even further whereas some of the Southern Indian States may actually have proportionately lesser seats in Parliament.  We also have to remember that some of our States which have been given statehood for ethnic and linguistic reasons do not have large populations and have only one seat in Parliament.

            Thus this is an example of two varied impacts of the growth of population on the political institutions of democracy in India. 

Social and Regional Groups

            “I claim that human mind or human society is not divided into watertight compartments called social, political and religious.  All act and react upon one another.”

Mahatma Gandhi

            Democracy in India was always based on the village council system.  This was slowly wrecked by invasion and loot which continued through the colonial period but the basic unit of village administration did not change and remained a part of Indian administration even under the Mughal dynasty and the British.  However the numbers participating in elections changed ever since modern democratic elections were introduced for the Legislative Assemblies in 1937.

It was significant that the Indian national movement for independence had regional contributions in 1857 due to differing grievances against the East India Company and its administration.  This was matched with the social repulsiveness felt by the Hindus and Muslims alike due to a series of administrative measures undertaken by the Company.  From 1857 to 1885 when the Indian National Congress was formed, the Indian national movement became a drawing room lawyers’ movement and it was only the return of Mahatma Gandhi from South Africa that took the movement into the streets and involved the common people into a mass struggle for freedom.  The movement for independence, therefore, was a greater leveler in social terms since social caste and class differentiation often came to nought when a common endeavour on the streets in movements and in jail came forth.  Similarly, the introduction of modern elements like the railways also broke down social barriers as during rail travel it was difficult, for instance, to keep kitchens separate or to eat separately from other fellow travelers.  Mahatma Gandhi in fact was a great social leveler treating each individual as important and equal and these ideals were enshrined in the Indian Constitution as Fundamental Rights which guarantee the equality of opportunity, equality before the law and freedom of religion among others.  Other socioeconomic ideals were enshrined in the Directive Principles of State Policy.  Gandhiji looked at the lowest segments of Indian society and provided them with political empowerment through raising them to the same level as everybody else.

            The impact of democratic elections, however, was different on these social equations.  The traditional social leaders did not have large numbers all over the country whereas the socially lower classes were numerically very strong in a larger number of constituencies and soon realized that the value of their vote was actually very high if they worked together in groups.  Initially, this lead to formation of interest and pressure groups but as the single dominant party system in India eroded and more varied democratic opportunities emerged, minority groups in terms of religion and socially backward groups from the traditional Indian stratified society acquired more clear political overtones often leading to the creation of smaller regional parties.  The growing clout of these parties at the State level including the formation of State governments by some of them and the growing era of coalition politics at the Centre have now brought what were traditionally socially depressed classes in the mainstream of political life.  Similarly, some of the regional parties draw political sustenance from the resurgent efforts of what are called other backward classes who are seeking to obtain greater representation in government services, etc. through positive discrimination by emulating the success achieved by those classes which were already mentioned in the Constitutional list which govern positive discrimination in India.  This has had its own political dynamic as well as the social impact.

Regionalism

            Naturally this has not been even all over the country and in different States regional movements have taken different views. 

In this analysis we must remember what Mahatma Gandhi said:

            “There is no human institution but has its dangers.  The greater the institution, the greater the chances of abuse.  Democracy is a great institution and therefore it is liable to be greatly abused.  The remedy therefore is not avoidance of democracy but reduction of the possibility of abuse to a minimum.” 

            India being a Union of States and functioning on a federal model has adequate space for regional diversity to be respected.  There is no doubt, however, that some regional entities more aggressively promote their identity than others.  Stronger regional movements leading to such movements becoming political parties is also a reality and we have strong regional parties in several states.  One aspect of this is that the old banyan tree of the Congress which led India to independence and was the single dominant party for the first twenty years thereof assimilated all political views.  When regional movements emerged and led to political institutionalization they became challengers to local domination by the major parties.  The Election Commission of India recognizes political parties at the national level and separately at the regional level.

Universities

            “If we want to cultivate a true spirit of democracy we cannot afford to be intolerant.  Intolerance betrays want of faith in one’s cause.”

Mahatma Gandhi

            Let us look at another pillar of democracy i.e. the universities.  Universities though centrally governed through the University Grants Commission are largely autonomous and often reflect regional realities by promoting regional influence and cultures besides a regional focus.  At the same time the universities have managed to retain strong national views and specialization which attracts students from all over the country to the important ones.  Thus at the level of universities we find that the federal divide between the Union and the States is also visible.

Media

“Public opinion alone can keep a society pure and healthy.”

Mahatma Gandhi

            If we look at another pillar of democracy, the media, we find that the strengthening of regional entities in the political spectrum has also led to the emergence of a more vibrant and stronger regional press, both in the print media and in television.  The regional language channels on television are often owned by political families or institutions.  At the same time national dailies, even in English, are more and more creating regional editions of their newspapers and national TV channels are creating regional language channels as part of their overall bouquet.  Thus the regional impact on the institutions of democracy is very evident.

Civil Society

            Civil society organizations and local government institutions have always been a part and parcel of India’s sociopolitical milieu.  The village councils were always powerful.  However, constitutional recognition of them was only given through the 73^rd Constitutional Amendment Act 1972.  Since then local elections in India have been held on party less basis with 1/3^rd of the seats reserved for women.  Both these important aspects are absent from the elections to the State or National legislatures.  There has been some decentralization of power and financing arrangements and the Panchayati Raj institutions which were a part of the Directive Principles of the State Policy of the Indian Constitution have been a major empowerment for local communities particularly in rural areas. 

Decision making has thus come to the community level and it is found that decisions on developmental issues e.g. should there be street lighting or a public park, biogas for cooking or a road, are often taken by the village councils in consultation with communities. 

This empowerment and non-party character of elections at the local level has its own significance for the anti-incumbency syndrome in elections fought by political parties for regional and national assemblies.  This empowerment is to be seen along with the allocation of local area development funds directly to Members of Parliament for working with district administrations for developmental works in their own areas.  Misuse of these funds is challenged by local NGOs and panchayats and MPs have also to directly deal with the district administration, consult communities, allocate some funds and show some direct achievement in their constituency during their term in Parliament.  There is similarly a greater emphasis on using NGOs, particularly Indian NGOs, to break the long administrative bottlenecks and channels and reduce the cost and time of delivery of developmental projects.  There was a time when NGOs were considered the enemies of the administration but there is more and more realization that the local administration can often work closely with NGOs to take the right decisions, obtain the right opinion and use these as inputs for allocation of developmental funds.  The Indian Diaspora which is often successful abroad often comes back to India and sets up NGOs to deal with specific issues in their home areas.  Their level of education and functional success makes them important allies in the fight against poverty.

Women & Youth

            “Women is the companion of man, gifted with equal mental capacities, She has the right to participate in the minutest details in the activities of man, and she has an equal right of freedom and liberty with him.”

Mahatma Gandhi

            The reservation of 33 per cent seats in local bodies for women and the decision by Prime Minister Rajiv Gandhi in the mid-80s to reduce the voting age to 18 were two significant events in involving women and youth in the developmental process in India.  A volunteer system has not really taken off in India as every youth who is educated is expected to undertake a career soon after his university days are over. 

            Rural youth who do not go in for higher education often enter the farming community directly.  But we know that this aberration and lack of opportunities for youth often lead to political turmoil and thus the involvement of youth in constructive activity is extremely important and recognized.  The youth brigade is always considered an asset in a political system where gerontocracy is a time honoured tradition.  It is also to be noted that India is a very young country with more than half of its population of 1.2 billion being under the age of 45.  This has its own significance for the functioning of democracy and the social impact of it.  Where modern educated youth and their political chances are concerned, women are not left out of the main stream.  At the rural level the involvement of women through village councils has made them decision makers and brought the realities of the requirement of home and hearth into the local political domain.  India today has, for the first time since its independence, a lady President and presently we have 3 lady Chief Ministers two of whom belong to mainstream political parties and one who is herself the leader of a party representing the underprivileged in India’s largest State.

            “Democracy must in essence, therefore, mean the art and science of mobilising the entire physical, economic and spiritual resources of all the various sections of the people in the service of the common good of all.”

Mahatma Gandhi

* * * * *

Doing business with India

Second Regional Symposium in Ethiopia

Awassa – 3 December 2007

"India a Partner of Choice"

Address by H.E. Mr. Gurjit Singh, Ambassador of India

            I am delighted today to welcome you to the inauguration of the second Regional Symposium in Ethiopia under the 'Doing business with India'. We are undertaking such a major event focusing on developing partnerships in Awassa and I believe that this has a significance of its own.

            Today as we meet here we have the opportunity to refocus our attention on the growing economic opportunities in Ethiopia. We are taking note of the important economic developments in various regions of Ethiopia and Southern Nations, Nationalities and Peoples’ Regional State in particular. Traditionally the eastern coast of Africa has been washed by the waters of the Indian Ocean and the hinterland of this coast had age old links with India.  We aim to revitalize and add new vigour to these ties so that a new matrix of economic engagement and partnership may emerge.

            India today stands shoulder to shoulder with Ethiopia as it has done over many years. However, the rules of engagement and the opportunities of cooperation have collectively changed and this Symposium aims at understanding and recognizing the new conditions and the emerging opportunities so that the renewal that we look for in our engagement is fulsome and meaningful. Last year, we had the first regional Conclave for eastern Africa, 'India-Africa Project Partnership 2006' in Addis Ababa. It was addressed by H.E. the Prime Minister of Ethiopia and made an important impact on focusing the attention of the Indian companies onto the opportunities in Ethiopia. Subsequently, a strong Ethiopian delegation, mainly from the public sector, participated in the Conclave under the India-Africa Project Partnership in New Delhi in October 2006.

            India today is a country, which strives with new confidence on the global stage. It is the fastest growing free market economy, which is growing annually at an average of 8% over several years, where the success in agriculture and manufacturing has been overtaken by the share of services in the GDP of the country and where the consumption patterns create new markets. There is an opportunity, which is waiting to be grasped. India’s economic growth and the investment in education, human resource development, the infrastructure for the services sector has all brought forth immense opportunities for modern India. We believe that this experience is a basis for sharing with Ethiopia and for creating opportunities for cooperation and business partnerships. In this connection, I am happy to state that the initiative taken by India for the Pan Africa e-Network Project which would be implemented in conjunction with the African Union and all its constituent members provides an opportunity for bringing the cutting edge of India’s science and information technology to touch the lives of ordinary Africans. Under this project tele-education and tele-medicine would be brought to the very doorsteps of people in Africa and what is more there would be capacity building in both material and human terms in African universities and hospitals which would become a part of the e-Network Project. Through this project there would be business opportunities developed for universities and hospitals and the experience of this project would allow for creative business engagement by the same institutions so that the expansion of this project could become meaningful and self-sustaining. We are extremely happy that the Government of Ethiopia has been the first to sign an agreement with India under this project and we are glad that the pilot project is underway in Ethiopia. The educational facilities at Addis Ababa University and Haromaya University are now functional and classes for Master of Business Administration are beginning shortly with the Indira Gandhi National Open University. In due course, the linkages with five other Indian Universities will be established. Similarly, the tele-medicine facility at Black Lion Hospital in Addis Ababa and Nekempt Hospital are carrying out preliminary consultations with Care Hospital, Hyderabad. This programme will also be expanded.

            Today our trade with eastern Africa is growing and is presently about $1.3 billion. With Ethiopia and Djibouti our trade has grown by 61% in 2005-2006. This is above the average for the region. At the same time grasping the opportunities which globalization offers and the liberalization accorded to Indian companies to invest overseas we find that this opportunity is being converted to investment. 230 Indian companies have already invested in Ethiopia and the total investment is over $400 million.50 Indian companies have invested in floriculture and similarly larger numbers have invested in engineering, plastics and consultancy. One of the aims of this Symposium is to enhance trade and further investment by a partnership between India’s public and private sectors with their counterparts. I am confident that given the support of the governments and promotional avenues this is bound to happen in a short time frame. On our part we are in Awassa today to woo partners in Southern Nations, Nationalities and Peoples’ Regional State so that not only our trade but our investment, joint ventures and partnerships can expand.

            The expansion of our economic engagement has three distinct parts. Where trade is concerned, India would continue to strive to provide quality goods at competitive prices to the markets in eastern Africa. The growing trend of imports from India is a pointer in this direction. We will expand this to include the provision of services, which would contribute to the development of countries of this region. Similarly we would endeavour to enhance exports from Ethiopia to India. The growing market of India has a potential, which this region has not fully tapped. At present due to existing agreements and trade relations, most African countries look either to the European Union or the USA for export opportunities. I would like to put it to you that the large market in India offers potential of similar opportunities. We need to develop those products, which the Indian market requires and provide them with suitable quantity and quality so that a concerted effort to enter the Indian market could be made sustainable. Pulses, other agricultural products, leather are some ideas. We would like to develop partnerships in this connection as well. Similarly, we would like to convert the successful trading relationship with Ethiopia to investment opportunities. We have already seen this happen and where several companies who were having a successful export to Ethiopia have followed the local demand and decided to set up projects in Ethiopia to cover the local demand at competitive prices. This transfer of technology and infusion of capital from India is growing in dimension and provides incremental opportunities in the countries of the region to enhance their export capabilities.

            Ladies & Gentlemen, the third dimension of the partnership that we seek is one which would enhance technical collaboration, transfer of technology and greater participation by Indian companies under projects funded through international and alternative sources. Indian companies have been successful notably in Ethiopia and Sudan and to a smaller extent in Kenya, Uganda and Tanzania to win contracts through open bidding under internationally funded projects. We thought that alternate financing for such infrastructural projects as well as for smaller development of industry is both necessary and feasible. To this end this Symposium has a special focus to alternate financing methods. Last year, several regional financing institutions like the African Development Bank, PTA Bank, the Afri-EXIM Bank, the East Africa Development Bank and IDC of South Africa and IDB of Kenya had all found it feasible to utilize their partnerships with the EXIM Bank of India, so that other countries in the region share this experience and find a wider paradigm of financing available to the projects that we aim to initiate through this Symposium.

India has a large exposure through lines of credit in Africa.  Nearly $2 billion is committed through bilateral, regional and Pan-African lines of credit.  The most significant line of credit to Ethiopia was announced in 2006 amounting to $65 million to support rural electrification projects in Ethiopia.  In addition, we are going to provide up to $640 million over a five-year period to support the expansion of the sugar industry in Ethiopia.  At the same time there are requirements for trade finance, project finance and finance for working capital by various banks and institutions and the session focused on the opportunities and constraints under which the public and private sector banks in Ethiopia function.  We are looking at a larger number of correspondent relationships between Indian and Ethiopian banks so that direct banking can support the growing matrix of economic cooperation between India and Ethiopia, which is now nearly $1 billion.

            Your Excellencies, Ladies & Gentlemen, it is a matter of immense pride for us that today the leaders of Indian industry, through the Indian Business Forum, have all joined us in a common endeavour to reach out to potential partners in the Southern Nations, Nationalities and Peoples’ Regional State. I am confident that this initiative, which recognizes the developments in Southern Nations, Nationalities and Peoples’ Regional State in general, would have positive results. I would urge that the measures that I have outlined will lead to the development of stronger partnerships, evolution of new areas of trade and investment and a greater focus on the development of services in a common endeavour to enhance economic development in the region and generate employment.

*****

Doing business with India

First Regional Symposium in Ethiopia

Mekelle - 5 April 2007

"India a Partner of Choice"

Address by H.E. Mr. Gurjit Singh, Ambassador of India

            I am delighted today to welcome you to the inauguration of the first Regional Symposium in Ethiopia under the 'Doing business with India'. It is for the first time that India is undertaking such a major event focusing on developing partnerships in Mekelle and I believe that this has a significance of its own.

            Today as we meet here we have the opportunity to refocus our attention on the growing economic opportunities in Ethiopia. We are taking note of the important economic developments in various regions of Ethiopia and Tigray in particular. Traditionally the eastern coast of Africa has been washed by the waters of the Indian Ocean and the hinterland of this coast had age old links with India.  We aim to revitalize and add new vigour to these ties so that a new matrix of economic engagement and partnership may emerge.

            India today stands shoulder to shoulder with Ethiopia as it has done over many years. However, the rules of engagement and the opportunities of cooperation have collectively changed and this Symposium aims at understanding and recognizing the new conditions and the emerging opportunities so that the renewal that we look for in our engagement is fulsome and meaningful. Last year, we had the first regional Conclave for eastern Africa, 'India-Africa Project Partnership 2006' in Addis Ababa. It was addressed by H.E. the Prime Minister of Ethiopia and made an important impact on focusing the attention of the Indian companies onto the opportunities in Ethiopia. Subsequently, a strong Ethiopian delegation, mainly from the public sector, participated in the Conclave under the India-Africa Project Partnership in New Delhi in October 2006.

            India today is a country, which strives with new confidence on the global stage. It is the fastest growing free market economy, which is growing annually at an average of 8% over several years, where the success in agriculture and manufacturing has been overtaken by the share of services in the GDP of the country and where the consumption patterns create new markets. There is an opportunity, which is waiting to be grasped. India’s economic growth and the investment in education, human resource development, the infrastructure for the services sector has all brought forth immense opportunities for modern India. We believe that this experience is a basis for sharing with Ethiopia and for creating opportunities for cooperation and business partnerships. In this connection, I am happy to state that the initiative taken by India for the Pan Africa e-Network Project which would be implemented in conjunction with the African Union and all its constituent members provides an opportunity for bringing the cutting edge of India’s science and information technology to touch the lives of ordinary Africans. Under this project tele-education and tele-medicine would be brought to the very doorsteps of people in Africa and what is more there would be capacity building in both material and human terms in African universities and hospitals which would become a part of the e-Network Project. Through this project there would be business opportunities developed for universities and hospitals and the experience of this project would allow for creative business engagement by the same institutions so that the expansion of this project could become meaningful and self-sustaining. We are extremely happy that the Government of Ethiopia has been the first to sign an agreement with India under this project and we are glad that the pilot project is underway in Ethiopia. The educational facilities at Addis Ababa University and Haromaya University are now functional and classes for Master of Business Administration are beginning shortly with the Indira Gandhi National Open University. In due course, the linkages with five other Indian Universities will be established. Similarly, the tele-medicine facility at Black Lion Hospital in Addis Ababa and Nekempt Hospital are carrying out preliminary consultations with Care Hospital, Hyderabad. This programme will also be expanded.

            Today our trade with eastern Africa is growing and is presently about $1.3 billion. With Ethiopia and Djibouti our trade has grown by 61% in 2005-2006. This is above the average for the region. At the same time grasping the opportunities which globalization offers and the liberalization accorded to Indian companies to invest overseas we find that this opportunity is being converted to investment. 230 Indian companies have already invested in Ethiopia and the total investment is over $400 million.50 Indian companies have invested in floriculture and similarly larger numbers have invested in engineering, plastics and consultancy. One of the aims of this Symposium is to enhance trade and further investment by a partnership between India’s public and private sectors with their counterparts. I am confident that given the support of the governments and promotional avenues this is bound to happen in a short time frame. On our part we are in Mekelle today to woo partners in Tigray so that not only our trade but our investment, joint ventures and partnerships can expand.

            The expansion of our economic engagement has three distinct parts. Where trade is concerned, India would continue to strive to provide quality goods at competitive prices to the markets in eastern Africa. The growing trend of imports from India is a pointer in this direction. We will expand this to include the provision of services, which would contribute to the development of countries of this region. Similarly we would endeavour to enhance exports from Ethiopia to India. The growing market of India has a potential, which this region has not fully tapped. At present due to existing agreements and trade relations, most African countries look either to the European Union or the USA for export opportunities. I would like to put it to you that the large market in India offers potential of similar opportunities. We need to develop those products, which the Indian market requires and provide them with suitable quantity and quality so that a concerted effort to enter the Indian market could be made sustainable. Pulses, other agricultural products, leather are some ideas. We would like to develop partnerships in this connection as well. Similarly, we would like to convert the successful trading relationship with Ethiopia to investment opportunities. We have already seen this happen and where several companies who were having a successful export to Ethiopia have followed the local demand and decided to set up projects in Ethiopia to cover the local demand at competitive prices. This transfer of technology and infusion of capital from India is growing in dimension and provides incremental opportunities in the countries of the region to enhance their export capabilities.

            Ladies & Gentlemen, the third dimension of the partnership that we seek is one which would enhance technical collaboration, transfer of technology and greater participation by Indian companies under projects funded through international and alternative sources. Indian companies have been successful notably in Ethiopia and Sudan and to a smaller extent in Kenya, Uganda and Tanzania to win contracts through open bidding under internationally funded projects. We thought that alternate financing for such infrastructural projects as well as for smaller development of industry is both necessary and feasible. To this end this Symposium has a special focus to alternate financing methods. Last year, several regional financing institutions like the African Development Bank, PTA Bank, the Afri-EXIM Bank, the East Africa Development Bank and IDC of South Africa and IDB of Kenya had all found it feasible to utilize their partnerships with the EXIM Bank of India, so that other countries in the region share this experience and find a wider paradigm of financing available to the projects that we aim to initiate through this Symposium.

India has a large exposure through lines of credit in Africa.  Nearly $2 billion is committed through bilateral, regional and Pan-African lines of credit.  The most significant line of credit to Ethiopia was announced in 2006 amounting to $65 million to support rural electrification projects in Ethiopia.  At the same time there are requirements for trade finance, project finance and finance for working capital by various banks and institutions and the session focused on the opportunities and constraints under which the public and private sector banks in Ethiopia function.             We are looking at a larger number of correspondent relationships between Indian and Ethiopian banks so that direct banking can support the growing matrix of economic cooperation between India and Ethiopia, which is now nearly $1 billion.

            Your Excellencies, Ladies & Gentlemen, it is a matter of immense pride for us that today the leaders of Indian industry, through the Indian Business Forum, have all joined us in a common endeavour to reach out to potential partners in the Tigray region. I am confident that this initiative, which recognizes the developments in Tigray region in general, would have positive results. I would urge that the measures that I have outlined will lead to the development of stronger partnerships, evolution of new areas of trade and investment and a greater focus on the development of services in a common endeavour to enhance economic development in the region and generate employment.

*****

REMARKS BY H.E. MR. GURJIT SINGH,

AMBASSADOR OF INDIA TO ETHIOPIA, DJIBOUTI

AND REPRESENTATIVE OF INDIA TO THE AFRICAN UNION

The Economic Policy of a Developing Country in a Globalising World

Distinguished Chairmen and members of Parliament,

            If you view Africa from India, you actually think of a neighbour because the shores of Eastern Africa lie just across the Indian Ocean and have been visited by Indian seafarers and traders for centuries. Even the ‘Father of the Nation’ Mahatma Gandhi visited Africa along the coastline first at Lamu, moving to Zanzibar, Mozambique and finally to South Africa.  Thus, Africa is not seen as a distant continent but a neighbour across the sea in the development of India’s foreign policy.

            The end of the Cold War and the breach of the Berlin Wall set into motion a process of accelerated globalisation which allowed the emergence of cross-border challenges which have become important features of current international relations. The foreign policy of India, naturally has had to work within these changes and adapt to the new environment.

            India today has 116 embassies abroad and the Embassy in Ethiopia is one of the oldest having been established in 1950.  The Ministry of External Affairs has less than 5000 diplomats and is one-fourth the size of the Brazilian Foreign Service and one-seventh the size of the Chinese Foreign Office.

            The foreign policy also manifests the major changes which have occurred within India, particularly since 1991.  As we approach the 60^th anniversary of our independence this year India’s international prospects are better than ever before.  Since 1991, India has taken the road to fulsome reform and economic liberalisation of a kind which few had anticipated either in its initiation or in the results that we see today.  Consequently, there has been a spectacular increase in India’s engagement with the world, including with Africa and Ethiopia where the time coincided with another series of changes here.  For India, it has become increasingly important to look for an international environment which is stable and peaceful so that our contribution to our own development goals and those of our friends and neighbours can be enhanced.  We also do not wish to be passive observers but want to contribute to the reordering of the global stage.

            While rising to meet the challenges of the post-war globalising world, India has created notable continuity in the basic elements of its foreign policy.  At the centre of this, has been the desire to maintain an autonomy in our decision-making.  This includes freedom of thought and action and remains the essence of our acceptance of the principle of Non-Alignment.  Such also was the basis of our adherence to the five principles of peaceful co-existence, Panchsheel, which India had jointly enunciated with China in 1955 and which we believe still have an important relevance to present day international relations.  Other elements of the continuity of our foreign policy include the upkeep of friendly relations with all countries of the world whose number has indeed been expanding, the resolution of all conflicts through peaceful means and the search for equity in the manner in which international relations are conducted.  Thus, there is a firm commitment for the pursuit of India’s national interest, the promotion of multi-polarity in world relations and sharing its developmental experiences with other developing countries.  For the first time in the last 60 years India’s relations with all major countries are improving simultaneously whether it is our own neighbourhood, the rest of Asia, Europe and the United States or Latin America and not least of all. Africa.

            In the pursuit of such a foreign policy, India has sought a proper role for itself in the world political and economic system and has sought to bring about multi-polarity in the conduct of international relations.  Naturally, to follow this idea, India supports the strengthening of multilateral institutions as we believe that they are indispensable to deal with global challenges such as terrorism, proliferation of a variety of weapons of mass destruction, diseases like HIV/AIDS, malaria, tuberculosis, avian flu and cross-border drug dealings.  This multilateral approach also allows us to bring together the gains in science and technology and the growing academic excellence around the world so that they can be harnessed to overcome the detrimental impact of poverty, disease, climate change and environmental degradation.  India firmly believes that there is no single country or regional grouping, whatever be their basis of power and economic strength, who can hope to deal with such challenges by themselves.

            In this emerging multi-polar world, there is a clear requirement to create a paradigm of cooperation which would provide global responses to global threats.  India has particularly focussed on the strengthening of multilateral institutions like the United Nations to boost comprehensive reforms.  We are particularly keen that the reform of the United Nations and its organs, including the Security Council, take on board the aspirations and hopes of the majority of the membership of the United Nations, as only through this, would multilateralism become effective in dealing with global challenges.  In any reform of the United Nations, a restructuring of the Security Council must be a priority as India believes that in its present composition, it is at least two generations behind contemporary geo-political realities.  We believe that India with its growing population and economy which is growing at 8%, a tradition of contribution to international peace keeping and the maintenance of regional and international peace as well as its close relationship with the developing countries and its emphasis on science, technology, information and IT makes it a deserving candidate for a permanent seat in the UN Security Council.  Similarly, we believe that Africa must find its voice in the UN Security Council too and rectify the historic imbalance in that organ.  We are confident that our engagement with Africa and our mutual understanding of African and Indian aspirations serves as a good platform to take the reform of the UN system ahead.  Similarly, India’s position with regard to the WTO is now well known and we are clear that while the world needs new rules for trade, there must be a level playing field and an equal openness on all sides. 

India and Africa:

            India and Africa together have over half of the world’s population.  Our relationship is special as it is bound by a tradition of friendship and interaction for mutual benefit which have been given a new direction by greater collaboration in areas of technology transfer, trade and capacity building.  In fact, the tripod on which the India-Africa relationship stands today with the resonance of South-South cooperation is that of technology, trade and training.  There has been and continues to be a regard for India’s path of democratic development which many African countries see as a beacon.  There is a new expectation and optimism as modern India seeks to enhance its relationship with resurgent Africa to contribute to the development of a new international order.  A common understanding underpins the era of shared struggle against colonialism, apartheid and imperialism as in the 1990s, we all become more realistic and adapted to the present world as both India and Africa emerge to take their places in the sunshine of globalisation.  Due to this, our age-old relationship has been re-vitalised and today there is a distinct effort to have mutual complimentarity enhanced and greater content added to the friendship between India and Africa. 

Technology Transfer:

            There has been a series of initiatives which India has taken towards Africa so that the challenges of globalisation and development can be better met.  One of the most recent is an ambitious Pan-African e-network project that seeks to provide e-connectivity between the 53 countries of the African Union with India so that the development of science, technology and IT in India can be brought to touch the lives of ordinary Africans through the tele-medicine and tele-education segment of the project.  The brainchild of India’s President, His Excellency Dr. A.P.J. Abdul Kalam, the Pan-African e-network project is expected to revolutionise e-communication throughout Africa and replenish the huge reservoir of goodwill that exist on both sides.  Importantly, it will include technology and human resource development which are two important tenets of India’s Africa policy. 

Trade and economic cooperation:

Many Indian initiatives to enhance economic cooperation with Africa have been through the extension of lines of credit at the bilateral, regional and Pan-African level.  This is an effort to innovate new development partnerships to enhance economic and technological interaction. India is a member of the African Development Bank and the Afri-EXIM Bank through which an Indian Trust Fund, and an Indian Line of Credit respectively operates to achieve developmental goals in Africa.  At the regional level, India has Lines of Credit available with the East Africa Development Bank, the PTA Bank for the COMESA region, BOAD for the West Africa region.  In order to cover the gap which India has traditionally had with some West African countries, a Team‑9 approach was created under which US$ 500 million was committed for project partnerships with countries in Central and West Africa.  The number of countries joining Team‑9 has increased.  Similarly, there has been a Line of Credit of US$ 200 million to assist NEPAD under which developmental projects in Senegal, Mali and the DRC have been approved. At the bilateral level, Lines of Credit have been extended to Kenya, Tanzania, Mozambique, Zambia, Namibia and  Ethiopia where India has offered US$ 65 million for a rural electrification project.  Many of these bilateral lines were facilitated by the writing off of the debt owed by several African countries under the HIPC initiative which led to the restructuring of commercial debt.  This reflected India’s wish to engage with Africa in a new matrix of cooperation.

At present we have nearly $2 billion in lines of credit in Africa. which have been extended  basically  in two areas.  First, they help to strengthen the private sector and small and medium enterprises through transfer of technology as well as management and entrepreneurship.  This has contributed to the development of the private sector, contributed to the development of entrepreneurship and contributed to the development of employment opportunities in several African countries.  Secondly, Lines of Credit have focussed on project partnerships under which larger infrastructure projects have been financed and have contributed to the development goals and MDGs in several African countries.  These have included projects like telecommunications, railways, transport, power irrigation and related sectors.

            Connected to this has been the greater entry of Indian companies both public and private into Africa.  Under the greater understanding achieved by the financing of projects under Lines of Credit, the ability of Indian companies to provide competent services under internationally funded projects gave them a confidence which has led to a surge of investment of Indian companies in African countries.  In neighbouring Sudan, India has invested in the energy sector to the tune of US$ 1.5 billion while in Ethiopia itself the growing private sector opportunities have seen more than 200 Indian companies invest in Ethiopia, mainly in the small and medium enterprises and floriculture.  We believe that the greater freedom accorded to the Indian private sector under the liberal economic norms in India allows Indian companies to reach out and seek new economic opportunities and this brings them to Africa in good measure.  Thus, the economic engagement of India with Africa through the terms of Lines of Credit and investment by private and public sector companies have been important elements in creating a new paradigm of economic cooperation.

            India-Africa bilateral trade has risen from $ 967 million in 1991 to $ 9.14 billion in 2005.  India’s exports to Africa in the same period have increased from $ 394 million to $ 5.4 billion and account for nearly 7% of India’s export basket.  It is significant to note that with Africa, there is a near balance of trade though this may not be true for every country or region.  It is also significant that the impact of growing liberalisation in India has allowed Indian companies to be more competitive and challenge traditional economic partners of African countries.  There is also a greater liberalisation accorded to Indian companies to invest overseas and the surge of Indian investment in selected African countries is very visible.

At this stage, I would like to highlight two significant developments on the economic and commercial aspects.  The growing openness of the Indian market and demand for some products, particularly natural resources and agricultural products in India is growing.  This allows African countries to tap the Indian market by assuaging the demand for particular products in India.  I am aware that some countries in Africa run a trade surplus with India by tapping such demand.  For instance, in Senegal, there is an Indian investment in a joint venture to produce phosphoric acid from the large deposits of phosphorus in Senegal.  The exports from that joint venture to India actually create a trade surplus for Senegal in its trade with India.  This example can be emulated by other countries having significant resources which are in demand in India.  Where agricultural products are concerned, Tanzania, for instance, exports such a large amount of cashew-nuts to India that they can run a trade surplus with India.  In Ethiopia, we are looking at the production of oil seeds and pulses on a consistent basis to tap into Indian demand for such items.  We have to understand the reality that Africa is a great producer of agriculture products, particularly in horticulture and floriculture but most of these have European destinations in mind and are encouraged by the leverage accorded to them by the Cotonou Agreement.  The same enthusiasm can be utilised to turn production towards Indian demands to enhance African exports to India since many of the current agriculture exports from Africa actually compete with Indian exports, e.g. coffee, tea, flowers and the like. 

            The other aspect that I would like to highlight is that as a conscious policy, India would like to take the path from trade to investment in its relationship with African countries.  In 2002, the Focus Africa programme was used to highlight greater opportunities which Indian companies could tap in Africa and support was granted to Indian commercial institutions who would study such opportunities and enhance their contacts.  Keeping this experience in mind, and the experience of the Lines of Credit extended to African financial institutions, it was decided to launch the India-Africa Project Partnership in which the lead was taken by the Confederation of Indian Industry (CII) and the EXIM Bank of India and supported by the Ministries of External Affairs and Commerce & Industry.  The first of these partnerships was in 2005 under the objective of “Expanding Horizons” and in which 160 delegates from 32 African countries participated in a Conclave held in November 2005.  Over 70 projects estimated to cost about $ 5 billion were discussed at the Conclave and efforts are underway to bring them to formulation and implementation stage.  Now we are entering the second year of the project partnership.   The programme for 2006 was more intricate and focussed on “India: A Partner of Choice” and concluded with a major conclave in New Delhi in October 2006.  Prior to this, there were three regional conclaves in Africa – in Lusaka, Addis Ababa and Accra where Indian companies travelled to take forward this project partnership and establish first-hand contacts with African companies in the respective regions.  Subsequently, before the main conclave took place, similar conclaves were held in major Indian cities like Mumbai, Kolkata, Hyderabad and Pune to sensitise a large number of Indian companies on the emerging opportunities in Africa and bring the results of the regional conclaves to them.  The major thrust of these conclaves was to enhance the possibility for Indian participation in African projects through a public-private partnership and to enhance the impact of India’s capacity building and resource mobilisation initiatives to seek greater avenues of direct finance through the use of public and private banks and new financial instruments.

            To summarise, I would say that this part of the growing relationship with Ethiopia excites me tremendously as I can feel the positive vibrations which this segment provides.

Capacity Building:

            Capacity building is one of the most significant contributions that India has made to Africa over a period of time.  India’s own success in human resource development has encouraged African students to look at India as an alternative source for education.  Under the Indian Technical and Economic Cooperation programme, more than 1000 people from Sub-Saharan Africa received training annually in India and since 1964, India has spent more than US$ 1 billion for such assistance including training, deputation of experts and implementation of projects in African countries.  Besides this, many African students go to India either on scholarship or a much larger number on self-financing basis and today, we see nearly 15,000 students from Africa studying in India while Indian professors, doctors, engineers, accountants and other experts are present in several African countries.  In this, the example of Ethiopia which has its own commitment to human resource development is a shining one.  The number of Ethiopian students seeking to utilise the Indian scholarship schemes is increasing; the number of Ethiopian students going to India to study has gone up tremendously and the number of Indian teachers and professors who work in Ethiopia to fulfill the developmental goals of HRD is growing.  The entry of private sector IT training companies from India into franchise arrangement in African countries and contributing to the growth of IT-related HRD is a new phenomenon which helps African countries generate trained manpower to grasp global opportunities.  Similarly, under the ITEC programme, India has created capacity building institutions in several African countries which are providing regional benefits.  The Entrepreneurship, Development and Training Centre in Senegal, IT Training Centre in Ghana, and Plastic Technology Training Centre in Namibia are some such examples under which training facilities have been created for local needs and have slowly been expanded to cover the development of regional HRD capacities.  We believe through these functional contributions, India’s capacity building projects help to create backward integration with growing industrialisation in many of these countries.

            In 2005, India became the first Asian country to be a full member of the Africa Capacity Building Foundation (ACBF) with a contribution of US$ 1 million to the ACBF mission to building capacity for sustainable development and poverty alleviation in Africa. India has also offered capacity building support to the African Union and to regional economic communities with several of whom we have MOUs for cooperation, like SADC, COMESA and the EAC.  An MOU with ECOWAS and ECCAS is under consideration.

Support to Democracy:

            Another important initiative is to support the African desire for greater democratisation.  The winds of change in Africa are clearly blowing which India has watched with great satisfaction.  We believe that democracy has to be rooted in local cultures and requires a process of political education and sensitisation. As the world’s largest democracy, India believes that it is a model for many developing countries, particularly since we have also shown that our developmental model in a democratic framework which is multi-party, multi-linguistic, multi-ethnic, multi-religious, is a viable one.  We have the capacity to support the development of democratic institutions in African countries and would continue to do so.  In fact, our ITEC programme has now got a window called the “Global Democracy Initiative” under which India supports the strengthening of institutions to conduct elections, support the strengthening of Parliamentary institutions and training of Parliamentary officials and Parliament as well as officials of Election Commissions.  We have also supported civil service reform and rationalisation of capacity building and the development of the civil service and public service commissions on the Indian model.  This support would remain sustainable as we believe this is a part of a process and needs to be continuing rather than an end in itself.

Support to Peace and Security:

            Another aspect that now I come to is the maintenance of peace and security which unfortunately continues to have an important role in the African continent.  The scourge of war needs to be removed from our midst and open space for political activity and dialogue needs to be created.  There have been several initiatives within Africa itself and the African Union Commission also has spent a lot of time on peace and security.  India’s position on this has been to support processes where conflict can be ended, peace maintained and space created for political dialogue.  Thus, Indian Peacekeeping Forces under the United Nations have acquired a significant role in several African conflicts and I believe that they have been successful in meeting the objectives set for them.  The earliest Indian peacekeeping Forces were involved in the Democratic Republic of Congo during the Katanga/Shaba secession and have since played a role in many other African countries.  Currently,over 9000 Indian troops are deployed under the UN flag under UNMEE in Ethiopia and Eritrea; In Sudan and in the eastern part of Democratic Republic of Congo where notably Indian, Pakistani and Bangladeshi troops work together for the maintenance of peace and security.  During the Second AU Summit in Mozambique, the Indian Navy had provided security cover in the Indian Ocean as a symbol of our closeness and support to Africa.  Besides this, India has also sent military training teams to countries in peace time to support the professionalisation of military institutions and we have had such training teams in Namibia, in Lesotho, in Tanzania, in Rwanda, in Zambia at varying times.  Some of you may recall that Ethioipa’s Harar Military Academy was set up by India for the benefit of the Ethiopian military.  At present, this approach is largely request-based and a part of our capacity building programme.

Humanitarian assistance:

            One of the most recent engagements that India has with Africa is to share its expertise to counter disease, drought, famine and environmental degradation.  Several initiatives have been taken to share India’s growing strength in the field of pharmaceuticals research and development and India’s ability to produce high quality medicines at affordable cost with African countries.  This brings an important factor to bear on the treatment of diseases like HIV/AIDS, tuberculosis, malaria and now the avian flu.  Similarly, support in cases of drought and famine through the supply of Indian food, milk and medicines for providing humanitarian relief has become a matter of policy in India’s relations with developing countries.  In this, the success of India’s Green Revolution, where from a net food importer we have become an exporter of food grain, provides us the ability to share what we have with others in times of need.  Similarly, the success of ‘Operation Flood’ in India which converted India from a country with a shortage of milk to a huge surplus has also allowed us to alleviate shortages of milk in some places.  Climate change and environmental degradation, and issues related to water resources are also issues on which we share experiences with African countries.  Most recently, through the Delhi Sustainable Summit organised by the Tata Environmental Research Institute, several of these issues including poverty alleviation and meeting the Millennium Development Goals, India’s expertise is being tapped more multilaterally than bilaterally, in a series of projects and meetings to share experiences and obtain common achievement.

            Mr. Chairman, Ladies and Gentlemen,

            With this rather elongated view of India’s engagement with Africa, I believe I have conveyed to you that the new matrix of engagement between India and Africa is so multi-faceted, and has so many different and substantive elements that allow us to move from a largely political engagement of the period of decolonisaiton to a strong engagement on a developmental agenda in recognition of the priorities which are prevalent today.  The growing number of visitors from Africa to India at all levels and specially from Ethiopia in the last few months, give us great happiness that the path we have walked on in recent years in the search for development in a democratic framework attracts resonance in Africa.  This multi-faceted cooperation, the sharing of experiences and commitment to search for a common destiny which change the system of international relations as it prevails today and provides improvements in the lives of our peoples, gives me great hope in what India and Africa will do together.

* * *

Ethio-India: 60 Years of Friendship

Lecture by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia, Djibouti and Representative of India to the African Union Mekelle, 21 May, 2008

“India and Ethiopia – Cooperation in Human Resource Development and Capacity Building”

            As we commemorate the establishment of diplomatic relations between India and Ethiopia 60 years ago we can look back with satisfaction at the multifaceted cooperation which has grown between India and Ethiopia.  As neighbours across the Indian Ocean we have had a heritage of interaction, a recent history of diversified cooperation and we look forward to the future with immense hope that the potential of our relationship will be realised in many more ways.

            There is no doubt that one of the earliest and most potent aspects of our cooperation has been relating to education, human resource development and capacity building.  Gandhiji said that the trade between India and Africa would be an exchange of ideas.  It is on these aspects that I intend to focus today.

            If we look back at the history of India and its relations with Ethiopia I believe that capacity building and human resource development have always been at the core.  Most historians would say that it was trading links which established our relations through the Aksumite period mainly through the port of Adulis not far from Mekelle.  While trade and commercial exchanges were no doubt the initial impetus, it was evident that mutual human capacities were built as both our ancient cultures came together.  Aspects of seafaring, of building, of trading, currency, of cultural exchanges and mutual understanding were the first steps where both our civilisations enriched each other and such enrichment cannot take place without the development of human resources, sharing of ideas and building of capacities.  Thus, I believe that we need to pay tribute to the ancient traders from both our countries who created the first joint ventures for the development of our civilisations.

            As we look further in history we can see the magnificent rock-hewn churches in Lalibela.  Around the time that these churches were built the first Muslim dynasties established themselves in Delhi and many of their generals in fact came from Habash and became important contributors to the development of new military strategies and military organisation in the Sultanate of Delhi and subsequently in other sultanates, particularly in Gujarat, Bengal and the Deccan.  Whatever be the political significance of those links, there had certainly been a capacity building and human resource development aspect which enriched both military organisation and military strategy in India in the pre-Mughal period.  At the same time Indian artisans and architects are known to have worked in Lalibela as the Hindu Swastika symbol visible in some of the constructions is a manifestation of.

            Later when the splendid palaces of Gondar were built that was the same period when the Mughal rulers in India were at their zenith of power and were building the colossal monuments like the Red Fort, the Jama Masjid and the Taj Mahal.  The influence of Indian architecture in the courts of the kings of Gondar has been recorded and since such architects never worked alone I believe that there was a capacity building element to their arrival and work in the Kingdom of Gondar as well.

Defence Capabilities

            During India’s colonial period, Indian forces often participated as part of British armies and we know that several thousand Indian troops participated in the liberation of Ethiopia during the Second World War and among the first Victoria Cross winners from India was Lieutenant (later Lieutenant General) P. S. Bhagat who won the Victoria Cross for acts of gallantry near Mattema on the Ethio-Sudan border.  Thus, when India became independent there were memories that Indian soldiers had of Ethiopia and its culture and the fact that several thousand Indians died in the liberation of Ethiopia as part of the British army is part of our recorded history.  I mention this because it was not only a mere coincidence that after India’s independence one of the first elaborate cooperation programmes that we had in Africa was the establishment of the Harar Military Academy in 1958-59 by then Brigadier (later Lieutenant General) N. C. Rawlley.   This Military Academy was the finest military training institution of its time and provided a large impetus to human resource development in general and military training in particular to not only Ethiopian cadets but several cadets from other African countries as well.  Next year the Harar Military Academy, which unfortunately does not exist now due to a historical accident, would have commemorated its golden jubilee.  This was the first institutionalised capacity building effort that India launched with Ethiopia and we believe it played an important role in developing professionalism, discipline and human resources which has stood Ethiopia and its African friends in good stead.  Associated with this was the training of Ethiopian cadets at the National Defence Academy in Khadakwasla, India and ten cadets between 1956 and 1971 partook of the training.  Interestingly, they were all from the then Ethiopian Navy. 

Indian Teachers and Schools

            Concurrent with this, during the Imperial period, Ethiopia while looking to enhance its human resource development and education capacities had turned to India and recruited a large number of Indian teachers for their schools programme.  These teachers came from all over India bringing the diversity of Indian culture into multicultural Ethiopia and there were people from Kerala, Tamil Nadu and Goa in the main.  They established a firm education system through the school system of Ethiopia and there is hardly any Ethiopian today whom I have met of that vintage who does not remember his Indian teachers with great fondness.  What is striking is that the Indian teachers did not come only to teach as per their contract; they came to share a living culture and civilisation and this is what endeared them to their students.  They generated enthusiasm for learning to go beyond what the text book said, to be inquisitive and as Henry Adam said “A teacher affects eternity; he can never tell where his influence stops”.

            In developing countries, history often takes a turn but it is the intrinsic mettle of the people emerging from their educational programmes which brings them back on track.  I believe that the educational foundations laid by Indian teachers in Ethiopia created capacities much beyond that envisaged by the process of education.  It contributed to an articulation of the Ethiopian identity, an enhancement of Ethiopian manifestation of its great civilisation and an elaboration of Ethiopia’s cultural depth and diversity.  These Indian teachers had come to Ethiopia a few years after Ethiopia had been freed from the yoke of occupation and thus these aspects which I emphasised perhaps had a greater historical validity than is often acknowledged.  Today we are proud to live with Ethiopia as a country in the modern world but we should pay tribute to the commitment of Ethiopia to enhance its education processes and the contribution provided by Indian teachers in that effort. Mahatma Gandhi had said “In a democratic scheme money invested in the promotion of learning gives a tenfold return to the people even as a seed sown in good soil returns a luxuriant crop”.

            As local capacities in teaching were built up there was a gradual phasing out of Indian teachers from the school system.  At the same time there has been a recurrent interest by Indians to run schools in Ethiopia which in the last few years has seen an investment by Indians to open schools in Ethiopia.  These are not confined to Addis Ababa but can be seen in many towns of Ethiopia.  India has invested $6.7 million in educational institutions in Ethiopia so far.

Indian Professors at Ethiopian Universities

            As the commitment of Ethiopia to develop its human resources continued a larger number of Indian professors were recruited consciously by the Ministry of Education at the main Ethiopian universities and specialised colleges.  At its peak in 2006, there were nearly 500 Indian professors in Ethiopia.  As part of the expansion programme for universities in Ethiopia the Ministry of Education again sought to recruit a large number of Indian professors but we believe that due to improving opportunities in India itself and the enhancement of capacities within Ethiopia the numbers of Indian professors in Ethiopia universities is likely to go down.  We are not disheartened by this as we see this as a proof of the Indian contribution to the development of capacities within Ethiopian universities and the success of the Ethiopian education development is bearing fruit.

Pan-African e-Network

            There is no doubt that both our governments are committed to a closer cooperation in the field of education.  In 2004, the then President of India H.E. Dr. A. P. J. Abdul Kalam, had given a vision for a Pan-African e-Network and that project has been developed with the African Union and the Pilot Project has been successfully implemented with Ethiopia.  It is no coincidence that the Pilot was implemented in Ethiopia since the Ethiopian commitment to capacity building through cooperative ventures with India is at the top of our bilateral agenda.  Last year during the visit of the Minister of External Affairs of India, H.E. Mr. Pranab Mukherjee to Ethiopia, the Pilot of the Pan-African e-Network Project was inaugurated for Tele-education at the Addis Ababa University and for Tele-medicine at the Black Lion Hospital.  Both these institutions have the capacity to create their own tele-education and tele-medicine programmes and transmit them to other institutions.  At the same time a learning centre for education was established at Hormaya University and for tele-medicine at Nekempt Hospital.  Under this programme, six Indian universities will be ultimately linked to universities in Africa where India would establish their tele-education centres.  Twelve Indian hospitals would provide tele-medicine facilities to hospitals in Africa.  Five regional centres would be established and the facilities that India has established at a grant of about $2.1 million in Ethiopia at the Addis Ababa University and Black Lion Hospital have the facilities to conduct their own classes, broadcast their own contents and provide their own consultations.  An Indian team is stationed there and is building capacities by transferring technology with the intention of handing over the running of these facilities in the ICT sense to the local counterparts.  In addition, at the Black Lion Hospital besides providing consultations for tele-medicine with specialist doctors in India there are also periodic classes for continuing medical education in areas selected by the Hospital authorities including various aspects of medicine, hospital administration and nursing.  We are happy that this Pilot has succeeded and the Government of Ethiopia is considering expanding these to other centres and universities as well.

Centres of Excellence

            During the visit of Prime Minister H.E. Ato Meles Zenawi to India in November 2007, he had discussed with the Prime Minister of India, H.E. Dr. Manmohan Singh the concept of establishing centres of excellence in Ethiopia with the help of Indian universities.  The idea was to utilise the tested technology of the e-Network project and expand it to a larger number of Ethiopian and Indian universities and twin them to establish centres of excellence which would contribute to the development of the HRD programme in Ethiopia with a particular focus on science and technology and management particularly at the post-graduate and doctoral level.  Both governments are committed to this and the Ministry of Education is working with some Indian institutions to make this happen as soon as possible.  When these centres of excellence are established we would consider it a considerable success of capacity building efforts generated through the e-Network project which we have successfully implemented in Ethiopia. 

            There is a growing trend of Ethiopian students going to India for graduate and post-graduate studies.  The Government of India has been providing 20 scholarships a year and this is likely to be doubled under a new programme announced by the Prime Minister of India at the India-Africa Forum Summit in April 2008.  Many go on their own finances and their number is more than 500 per annum in the last four years.  While this trend would continue, the establishment of centres of excellence by twinning Indian and Ethiopian universities through digital networks would provide the opportunity for a large number of Ethiopian students to be taught by top-level Indian professors at the best Indian institutions.  Thus, technology is being used to enhance our capacities to collaborate in the area of human resource development and education to go beyond the existing cooperation through the recruitment of professors in Ethiopian universities and the studying of Ethiopian students in India.

            I am very happy to inform you that one of our initiatives was to take the best and brightest students from the Mekelle Institute of Technology to the premier Indian Institute of Technology in Mumbai and in 2007 four such students on a cost-sharing basis between MIT and my Government were admitted and are doing wonderfully well.  We are now in the process of trying to admit a larger number of these students to elite Indian technology institutions in India.  Most of these students are expected to come back and teach at the MIT just as the students who are currently studying the MBA programme under the Pilot of the e-Network Project are expected to teach at other Ethiopian universities.  We believe that this would also contribute to building Ethiopian capacities and enhance and contribute to the implementation of their education development programmes.  We are happy to note that even when Ethiopian students choose to go to India they are not choosing simple courses but are choosing professional courses often engaging in high quality science and technology or management subjects.

ITEC Programme

            The flagship of India’s capacity building efforts in world is the Indian Technical and Economic Cooperation Programme, popularly called the ITEC Programme.  This Programme was started in 1964 and was offered to Ethiopia in 1969.  Under it a large number of premier Indian institutions provide specialised and vocational training in a variety of areas including SMEs, banking, ICT, rural industries and the like and Ethiopian participants have been selected by the Ministry of Education.  The total number of slots has slowly been rising from 10 at the beginning to 40 this year.  During the visit of Minister of External Affairs of India to Ethiopia in July 2007 it had been decided to double the slots from 25 to 50 in a five year period.  We have nearly 1000 alumni of the ITEC Programme in Ethiopia.  Under special courses held to develop SMEs concurrent to the India-Africa Forum Summit in March-April 2008, nearly 40 Ethiopian candidates participated in these special courses in India.  Under this programme specialist experts in relevant fields can also visit Ethiopia and in the past we have had experts in water resources and now we are looking at deputing experts to deal with soil salinity and management in association with the Ministry of Agriculture.

            In the last two years we have made special efforts to use the ITEC Programme in a greater diversity by reaching out to the private and non-governmental sectors as well.  Thus our association with Chambers of Commerce, with NGOs, with the media and with Parliament have, therefore, expanded.  There were some initiatives taken by my Embassy including a programme where Indian and Ethiopian women were brought together through a symposium entitled “Places and Spaces” which took place at the Addis Ababa University on May 13, 2006.  Following that a three member women’s delegation was invited under our capacity building programmes to interact with Indian women in India in 2007.  Subsequently we have had a Designers Development Project under which 50 young Ethiopian designers were trained in a series of workshops to build their capacities.  We were fascinated by what they had created which was displayed at our National Day Reception this year.  Four winners selected thereafter were taken under the ITEC Programme to India for a two week specialised training course which we believe has contributed to the development of their skills.  Similarly, around the India-Africa Forum Summit in April 2008, several outreach programmes were undertaken in which there was fulsome participation from Ethiopia.  These included the first India-Africa Editors Conference, a symposium of intellectuals, a women’s study tour and a youth study tour.  We had Ethiopian participants in all these programmes.  From time to time other special programmes are also held for various specialised groups and we believe that this interaction also contributes to human resource development and capacity building.

Integrating Trade and Industry

            Besides human resource development, one of the greatest areas of collaboration between India and Ethiopia is in trade and industry.  Today the extension of lines of credit of up to $700 million to Ethiopia by India, which are soft loans, will support the development of the rural electrification programme and the expansion of the sugar industry.  In addition, nearly $2 billion of private Indian investment has been committed to Ethiopia as per figures of the Ethiopian Investment Agency.  This large economic engagement with Ethiopia, most of which has happened in the last three years, besides leading to economic development also contributes to building of local capacities.  The lines of credit, for instance, would bring Indian companies with chosen technology to support the development process of Ethiopia.  Through that interaction, local capacities for management and implementation would be enhanced.  Similarly, Indian investment has been proving in Africa to be the most committed to the development of local capacities, the enhancement of domestic production and contribute to the development of intra-African trade.  Similarly, Indian consulting companies which have won internationally-financed contracts in the road, water resources, rural development and other sectors also employ a number of Ethiopians and contribute to the building of local capacities rather than bring more and more Indian personnel either in their companies or in their consulting companies.  Some Indian companies are now planning to establish their own training centres so that Ethiopians with the required capabilities can be trained to work with Indian companies in other countries.  Nearby here itself we have an Indian tractor company which has established a joint venture with an Ethiopian company and are assembling tractors and building local capacities to take on engineering jobs and build tractors at lower cost in the future.  To my mind the development of economic interaction with Ethiopia will succeed mainly because of the capacity building elements that it provides and the transfer of technology that Indian companies willingly undertake. 

            We believe, like Mahatma Gandhi said, “All education in a country has got to be demonstratively in promotion of the progress of the country in which it is given”.   He further said “The aim of university education should be to turn out true servants of the people who will live and die for the country’s freedom”.  Similarly, India’s first Prime Minister Pandit Jawaharlal Nehru in a letter to Chief Ministers on 27 June, 1961 had emphasised on the need for empowering backward groups by giving them access to good and technical education.  We believe that these thoughts of the founding fathers of modern India have a validity for other developing countries as well.  We see that these ideas have a clear resonance in Ethiopia which has a strong commitment to develop its human resources and build its capacities.  We believe that if countries are to achieve the Millennium Development Goals and transform themselves into middle income countries, a strong basis of good education and the building of local capacities are essential.  These attributes provide developing countries with inherent inner strength and ability to maintain their integrity and independence and to promote the cherished values of democracy and liberty.  We in India remain committed to work with Ethiopia in these fields and the recent announcement by the Prime Minister of India at the India-Africa Forum Summit in April 2008 that India would double its scholarships for African students and enhance its capacity building support both will contribute to an enhancement of our engagement in the important sector of education, human resource development and capacity building. 

International Exhibition-cum-Seminar on Innovative Building Materials and Construction Technologies for Sustainable Housing in Ethiopia

15^th April, 2008

Opening Remarks by H.E. Mr. Gurjit Singh, Ambassador of India

Your Excellency Mr. Arkebe Iqubai, State Minister of Work & Urban Development of Ethiopia

Your Excellency Dr. Harjit Singh Anand, Vice Minister of Housing & Urban Poverty Alleviation of India

Eminent guests, Ladies & Gentlemen,

            It gives me great pleasure today to be at this important function which is the first initiative by us after the successful India-Africa Forum Summit which was held in New Delhi last week.  It is also a manifestation of the close, friendly and expanding relationship between India and Ethiopia that this first ever seminar-cum-exhibition on innovative building materials and technologies for sustainable housing in Ethiopia takes place as we commemorate the Ethiopian Millennium and the 60^th anniversary of the establishment of diplomatic relations between India and Ethiopia.

Your Excellencies, Ladies & Gentlemen,

            Mahatma Gandhi used to say that the trade between India and Africa will be one of ideas and services.  Perhaps the full impact of that forecast is being felt today as we meet to discuss ideas and jointly meet the challenges of a changing world. 

            The Delhi Declaration of the India-Africa Forum Summit adopted last week was clear that the 21^st century is the century of India and Africa.  While we strive to grow together we also accept the global challenges and try and use our mutual experiences and resources to create a new paradigm of cooperation which will help us to help each other. 

            Two of such ideas come to my mind today.  The first is the challenge of housing for which our growing and young population create a big demand.  While we have to harness this demand as a locomotive for economic growth, at the same time we have to ensure that this growth is implemented in a sustainable manner utilising local rather than imported resources, providing not only cost effectiveness but a harmony with Mother Nature.  Therefore, recycling using environmentally friendly and energy efficient technologies and related sustainable production of building materials and components to cater to this huge housing demand is the need of the day.  The demand for housing and the supply of appropriate low cost yet innovative technologies is something that I am sure can be discussed amongst us all. 

            The second idea which comes to mind is that of climate change.  There are issues which we in India and Ethiopia have been forced to deal with though these have not been of our creation.  We will not accept any artificial restrictions on our development processes because others have polluted the earth before us.  At the same time we will act responsibly toward the earth and its resources and not shirk from our responsibility.  In such an effort the theme of today’s seminar with a focus on recycling waste, creating innovative technologies, utilising local materials and focussing on eco-friendly and sustainable patterns of production, employment and fulfilment of housing demand are an important element.

            I wish to thank the Ministry of Housing and Urban Poverty Alleviation of India through their Vice Minister H.E. Dr. Harjit Singh Anand, ably supported by two of India’s most innovative and yet practical institutions, the Housing and Urban Development Corporation and the Building Materials Trade Promotion Council for their continuing excellent work and in taking up the new focus of engagement that India and Africa have recently revitalised. 

            I would also like to that the Ministry of Work and Urban Development of Ethiopia through the Honourable Minister H.E. Mr. Arkebe Iqubai for their support to the visit of this important delegation which I believe is a fitting commemoration of 60 years of our bilateral relationship.

            I wish this seminar and the exhibition all success.

* * * * *

Symposium on Ethio-India 60 Years of Friendship

29 April, 2008, Addis Ababa

Remarks of H.E. Mr. Gurjit Singh, Ambassador of India,

in Session II (Economic Relations)

India-Ethiopia Economic Partnership – Trends and Prospects

            In the modern globalizing world, engagement between countries is often measured through their economic interaction.  This is not far different from our ancient engagement across the Indian Ocean between Adulis and the ports of western India. The terms of trade have certainly changed since then.  And it would be fair to say that the engagement has become stronger.

            In the Goodwill Mission sent from India to Ethiopia in 1948 interestingly the President of the Grain and Oil Seeds Merchants Association of Bombay was a member and during his visit besides meeting the Indian merchants through the Indian Association, he also met with the Commerce Minister and had visits to several cities in Ethiopia including Harar.  Thus from the very beginning of our relationship, trade and economic exchanges have been central to our engagement.

            Interestingly, the report of the Goodwill Mission had noted “Both the Government and the people of Ethiopia are favourably disposed towards engagement of Indian capital and talent.”  It is not surprising that today the same sentiment is very evident to us.  In the various meetings that the Goodwill Mission had in Ethiopia on the subjects relating to trade and industry, the focus was on agricultural cooperation, joint ventures between Ethiopian and Indian institutions and the establishment of textile mills, sugar factories, cement factories, tanneries and leather factories.  I found it most interesting while reading the report that these are still the areas that attract many Indian investors and are often the focus of discussion between Ethiopian and Indian entrepreneurs.  That is not to suggest, however, that nothing has changed.  If we look at the last few years, I think we see a remarkable growth in the development of India-Ethiopia economic relations and I would like to highlight a few of those aspects:

Lines of credit:

            I believe that the decision of the Government of India to grant its first ever line of credit for $ 65 million for support to the rural electrification programme in January 2006 was a trend setter.  Subsequently, during the visit of the Minister of External Affairs of India H.E. Mr. Pranab Mukherjee to Ethiopia in July 2007, he announced the extension of a line of credit of $ 640 million for supporting the expansion of the sugar industry in Ethiopia.  This is the largest line of credit India has ever given to any country so far.  It is a soft loan with interest rate of 1.75%, repayment period extending to 20 years and a grant element of over 40%.  These lines of credit have shown that the friendship that exists between India and Ethiopia has a firm commitment by India to Ethiopia’s developmental goals and the creation of productive assets.   It was a clear signal that we looked at Ethiopia as a firm partner in Africa,  respecting its stability and economic development plans and showed financial commitment through these lines.

            There is no doubt that these lines of credit will create employment, export capabilities and contribute to the development of infrastructure.  At the same time, we were conscious that these lines of credit were not stand alone events, but were part of the larger projects to which the Government of Ethiopia had committed its own financing.  What was thus created was a partnership and this trend is unlikely to be reversed.  During the recent meeting between the Prime Ministers of India and Ethiopia at the time of the India-Africa Forum Summit earlier this month, this fact was more than evident. It is also significant to note that the commitment of large lines of credit from India to Ethiopia for projects chosen by the Ethiopian Government also created a positive ambience for Ethiopia among Indian businessmen and entrepreneurs.

            At the recent India-Africa Forum Summit, the Prime Minister of India had announced that we would increase lending to Africa from the current level of over $ 2 billion to $ 5.4 billion in the next 5 years.  Similarly, grant projects would be increased to $ 500 million and this again provides opportunities for enhancing the scope of collaboration between India and Ethiopia.  

Private Investment:

            Ethiopia has now become the main destination for private Indian businessmen in eastern Africa.  This is due to a variety of factors including untapped opportunities in the past and the creation of a positive business environment in the last few years.  Indian investment has risen from about $ 200 million in 2005 to $ 1.8 billion in April 2008 with 351 investors registering their projects with the Ethiopian Investment Agency.

            It is significant to note that the $ 1.8 billion, which is committed to Ethiopia from India is mostly from small and medium enterprises, which are traditionally the vanguard of a surge in Indian investment.  The big companies are likely to appear soon since they take a longer time to assess project feasibilities, infrastructure development and the like since their investments are larger and require a greater gestation period.   We are confident that in several sectors some Indian companies, who have been in frequent contact with us and the Government of Ethiopia at various levels would soon be in Ethiopia.

            An analysis of the private Indian investment in Ethiopia shows that 170 companies with a capital of $ 340 million are in the manufacturing sector, while 72 companies with an investment of $ 380 million are in agriculture and floriculture.  Mining and hotels and restaurants have attracted a few companies with large investments, whereas other investors have also participated in the construction, education, health and service sectors.

Winning of contracts

            The fact that several Indian companies have won bids in internationally financed sectors in several sectors of the Ethiopian economy has been a positive step forward.  We are now looking at more opportunities in a variety of sectors attracting a larger number of Indian companies and seeking a level playing field from several of Ethiopia’s development partners, who often restrict Indian companies’ ability to bid for projects financed by them.  We are also working on Indian banks to enhance their understanding and relationship with Ethiopian banks to enhance our synergies.

Capacity Building:

            Keeping in view all these economic exchanges, we are also looking at enhancing capacity building activities by opening the ITEC programme to non-governmental and private sector partnerships to foster entrepreneurship.  We are looking to support the establishment of Centres of Excellence by Indian companies to build local capacities, so that more qualified professionals work with Indian companies in Ethiopia and elsewhere.

            Another area where we wish to enhance our support to the growing relationship is by adding capacity to airline connections.  Under the growing liberalization in Indian skies, Ethiopian Airlines has recently been given preferential treatment to bring them at par with new Airlines entering India.  They have also been allotted new regions including Kolkatta and Chennai, besides existing links to Delhi and Mumbai.  We believe that this is an important contribution to enhance business links between India and Ethiopia.

Trade:

            Though our initial economic exchanges several millennia ago began with trade, this is today the smallest part of our engagement.  Bilateral trade has risen from $ 154 million in 2002-03 to $ 370 million in 2006-07.  Therefore, bilateral trade has more than doubled in the last 5 years.

             During the visit of H.E. Mr. Girma Birru, Minister of Trade and Industry to Ethiopia in October 2006 and in meetings with his Indian counterpart H.E. Mr. Kamal Nath, a target of bilateral trade worth $ 500 million by 2010 was set.  If current trends are to be followed, this target is likely to be met by increasing Indian exports, since Ethiopian exports to India are neither increasing nor diversifying.   The biggest exports from Ethiopia to India have suffered due to the legitimate desire of Ethiopia to add value added processing to its exports.  This has particularly affected metal scrap and raw leather exports.  At the same time, however, Indian investments have increased in Ethiopia rapidly to foster Ethiopian exports to third countries.  Thus as an overall partner in development of trade, India has played an important role through its investments and lines of credit, but our bilateral trade languishes.  This is partly because India has not been appropriately viewed as an export destination and the products which the large Indian market needs in sustainable quality and quantity have not been achieved.  This offers a major opportunity for the future and I am sure more Indian companies will take advantage of this to join hands with Ethiopian partners to cater to the growing demand.  It is significant to note that most major Ethiopian exports are also items of export from India.

            An added incentive to the development of our bilateral trade is the announcement of the Prime Minister of India at the India-Africa Forum Summit in which he said “We recognize the crucial importance of market access in ensuring the development dimension of international trade.  Accordingly, I am happy to announce a Duty Free Tariff Preference Scheme for Least Developed Countries on the occasion of this Summit.  Under this Scheme, India shall unilaterally provide preferential market access for exports from all 50 least developed countries, 34 of which are in Africa.  The Scheme will cover 94% of India’s total tariff lines”.  To get covered under this scheme as a beneficiary country individual LDC members, which includes Ethiopia are required to provide a letter of intent to the Government of India and this will soon be discussed with the Government of Ethiopia.          

            While this scheme honours the mandate agreed to by the Trade Ministers at Hong Kong in December 2005 for providing duty free quota free access to products originating from LDCs, we believe this scheme needs a proper study, focused attention and a plan of action, so that this can be utilized to enhance Ethiopian exports to India. 

            The overall matrix of our economic cooperation is the bulwark of India-Ethiopia relations.  Further growth in our relations will be largely determined by the enhancement of our economic engagement.  It is evident that both countries are ready and willing and public private partnerships on the Indian side and a greater engagement with both public and private sector on the Ethiopian side will create a preferred model of cooperation in which mutual benefit, creation of productive assets, contribution to development goals and generation of employment and local capacities in Ethiopia will remain important objectives.

Symposium on Ethio-India: 60 Years of Friendship

29 April, 2008, Addis Ababa

Address by H.E. Mr. Gurjit Singh, Ambassador of India

            As India and Ethiopia commemorate 60 years of friendship this year we look back with satisfaction and look ahead with immense optimism.

Introduction

            60 years ago soon after India’s independence India’s first Prime Minister and Foreign Minister, Pandit Jawaharlal Nehru deputed a goodwill delegation led by Sardar Sant Singh to visit Ethiopia and establish diplomatic relations between our two countries.  This was a rather unique way in which diplomatic relations were established since, instead of waiting for the processes for establishing a legation and later a diplomatic mission, the Government of free India decided to bring a formal bilateral engagement into existence to cap a centuries old vibrant relationship which focused on people-to-people contacts, trade and cultural exchanges.  Today as we have entered the 21^st century as per the Ethiopian calendar and mark the Ethiopian Millennium along with our 60^th anniversary we can take satisfaction that the new tree of friendship planted in 1948 has born immense and satisfying fruit.

The Goodwill Mission

            According to the Report of the Indian Goodwill Mission to Ethiopia in September 1948, the delegation consisted of Sardar Sant Singh as the leader, Mrs. Ammu Swaminathan and Mr. Devji Rattansi, as members and 3 officials.  Sardar Sant Singh was a former member of the Indian legislature and Leader of the Opposition for 8 years.  He was a member of the Indian Bar, the Federal Court of India and the High Court of East Punjab.  He had been the President of the Postal and Telegraphic Union of India among other labour organizations and was the President of the Sikh Nationalist Party of India.  His selection to lead the Goodwill Mission by Pandit Jawaharlal Nehru was a forerunner of his appointment as the first Ambassador of India to Ethiopia two years later.  Mrs. Ammu Swaminathan was also a member of the Indian legislature and a member of the Constituent Assembly of India.  She was a founder Vice President of the All India Women’s Conference.  Mr. Devji Rattansi was the President of the Grain and Oilseeds Merchants’ Association of Bombay and the President of the District Congress Committee.  Thus, the delegation was a high powered one having high ranking political members as well as a commercial representative.

Support to Ethiopia

            India’s view of Ethiopia at that time was largely based on Pandit Nehru’s assessment of the situation from the time that Ethiopia was invaded.   Sardar Sant Singh during his visit to Ethiopia had noted “Unprovoked aggression on the freedom of Ethiopia …, when complete subjugation threatened its people, found strong reaction amongst the people of India in support of the Ethiopian cause”.  In fact, the Indian National Congress at that time, which was challenging the British empire for independence, decided to observe 9^th May, 1936 as Ethiopia Day throughout India.  This led to a protest by the Italian Consul General in Calcutta to Pandit Nehru who was the President of the Congress for that year and Pandit Nehru’s rejoinder to that said “Where imperialism appears, in whatever guise it might be, it is the opponent of the forces struggling for freedom and we have to oppose it.  Imperialism goes to exploit and remains to exploit, and the people under its heels sink materially and spiritually”.  Following this, popular reaction to the Ethiopia Day on 9^th May, 1936 found an echo in the legislature when it recommended to the British Governor General in Council to withdraw India from the membership of the League of Nations and to halt contributions to the League as a protest against the League’s attitude towards Ethiopia and its inability to protect a member from aggression.  Of course, at that time India was a British colony and this echo was the expression of a popular sentiment. 

            This Symposium today is being held on an auspicious time because we have just concluded the India-Africa Forum Summit and we were delighted to have the honour of receiving H.E. Ato Meles Zenawi, Prime Minister of the Federal Democratic Republic of Ethiopia and Your Excellency Ato Seyoum Mesfin, the Foreign Minister of the Federal Democratic Republic of Ethiopia.  This was an occasion to add greater momentum to our bilateral relationship and use it as a lever to accelerate the enhanced engagement of India and Africa. 

Delhi Declaration

Significantly, the Delhi Declaration states “We recognize that Africa and India have undergone enormous positive changes, in particular over the last two and half decades, and that Africa and India have historically been close allies in the struggle for independence, equality, human rights, freedom and democracy. We are neighbours across the Indian Ocean. We note that there has been significant positive transformation of the political, economic and social environment in Africa and the strengthening of democracy,…”. 

Further, “This partnership will be based on the fundamental principles of equality, mutual respect, and understanding between our peoples for our mutual benefit.

Some of the salient announcements made by the Prime Minister of India, H.E. Dr. Manmohan Singh at the India-Africa Forum Summit included: duty-free and quota-free access to LDCs, 34 of which are in Africa including Ethiopia; an increase in lines of credit from India to Africa to $5.4 billion over five years; enhancement of the funds for grant projects in Africa to $500 million; the doubling of scholarships and a 50% increase in capacity building slots and the establishment of an India-Africa Volunteer Corps.  This was part of our efforts to create a new architecture for engagement with Africa in the 21^st century and we expect Ethiopia to be a lead player in this. 

            In many ways the added vigour to the India-Africa relationship has been tested in the crucible of India-Ethiopia relations in the last few years.  In some ways Ethiopia has been a laboratory for implementing many of the ideas that India has for Africa and which find reflection in the Delhi Declaration.  It is a tribute to the Government and people of Ethiopia that they were receptive to these ideas and engaged with us fully at all levels so that a diversified and intensified relationship could develop. 

Your Excellencies, Ladies & Gentlemen,

            India and Ethiopia at 60 is an important milestone and when we look at this relationship I would like to highlight a few aspects of it since many of the experts would be speaking in detail about their allotted subjects.

Governmental Relations

            Our inter-governmental relations have never been better.  The Prime Minister of India, H.E. Dr. Manmohan Singh in his meeting with Prime Minister Meles on 9^th April enunciated this clearly and said that our cooperation with Ethiopia is clearly emerging and will go ahead much faster and deeper.  Similar sentiments were exchanged in the meeting that Your Excellency had with Minister for External Affairs of India, H.E. Mr. Pranab Mukherjee, who recalled his maiden visit to Ethiopia in July 2007 as one of the warmest and friendliest visits he had had in his years.  This exchange of high level visits has provided the impetus to create a new paradigm of cooperation and has filled the vacuum which existed for several years.  This mutual engagement by the leaderships of both countries is, therefore, one of the most significant developments that we can be proud of as our relationship turns sixty.

            We have signed several agreements last year during the visit of the Minister for External Affairs of India to Ethiopia and among them is the establishment of a Joint Commission which will review our entire relationship periodically and provide governmental support and momentum.  The new avenues of institutionalized cooperation in science & technology, in climate change, in investment promotion and protection and development of trade and civil aviation are among other significant features of our current relationship.  In the last three years we have had nearly 15 ministerial delegations from Ethiopia to India.  In return, 5 Indian ministerial delegations have visited Ethiopia including the first ever visit by the Minister for External Affairs of India to Ethiopia in July 2007.  Prime Minister Meles visited India twice in the last few months, in November for the International Conference on Federalism and in April 2008 for the India-Africa Forum Summit.  On both occasions he had extensive meetings with the Indian leadership. 

Economic Relations

            I would now like to turn to the economic dimension of our relationship which has become the locomotive for our enhanced bilateral relationship.  The significance of the fact that over 1.8 billion dollars of private Indian investment largely from small and medium enterprises has chosen to come to Ethiopia is not lost in India.  This immense surge of private sector investment into Ethiopia has changed the image of Ethiopia in the Indian mind.  It is now seen as a land of opportunity which welcomes Indian investors and provides a positive investment ambience.  Similarly, the Government of India has strongly supported Ethiopia’s development goals by providing concessional lines of credit for rural electrification and the expansion of the sugar industry which is expected to generate nearly 100,000 new jobs, create infrastructure and provide greater momentum to Ethiopian exports of sugar and power thus strengthening Ethiopia’s foreign exchange earning capacity.  The significance of the fact that never before this, had India offered such a large amount of credit to any single country but did so in Ethiopia was a tribute to our political understanding, our recognition of Ethiopia’s commitment to its development and in turn India’s own commitment at the governmental level to Ethiopian developmental goals.  This joint mix of governmental and private sector economic engagement with Ethiopia is a new dimension which has not been seen in our mutual history before and consolidates our friendship in a significant manner.  Further, a nurturing of our economic relations, timely implementation of projects, facilitation of Indian investors and their requirements would contribute to further expansion in this sector which will bring mutual benefit as India’s industry and entrepreneurs look abroad for greater opportunities.

Human Resource Development and Capacity Building

            Another area of our collaboration is human resource development and capacity building.  Indian teachers have been known in Ethiopia for teaching a generation of Ethiopians who occupy decision making positions today.  As Ethiopian capacities in this area increase Indian professors have taught at Ethiopian universities in large numbers.  Seeing the expansion of education institutions in Ethiopia and the desire to have a greater number of post-graduates and doctoral candidates it was not merely coincidental that the pilot project of the Pan-African e-Network was successfully implemented in Ethiopia and inaugurated last year.  The significance of having one Indian university teaching at two Ethiopian universities at the same time for a MBA course or the tele-medicine component which links an Indian hospital for specialists consultation with Ethiopian hospitals have opened various areas of cooperation which we are happy to know that both the governmental and private sectors in Ethiopia are now ready to tap, through an expansion programme.  The decision of the Ethiopian government to establish centres of excellence would emulate the tested technology of the e-network project’s tele-education component whereas several hospitals are interested in expanding the tele-medicine network which is attracting a lot of media attention these days. 

Through these, the aim of the Indian experiment is to provide Ethiopia and its people with adequate equipment and training programmes to build human capacities so that their ability to manage these new facilities and provide their own software after short training programmes can be increased.  This will remain the significant aspect of our overall cooperative relationship where there is mutual recognition of our role in the world and in our region, of the challenges which face us and the need for building up of our own capacities human, fiscal and institutional will go a long way in contributing to the achievement of our developmental goals.

            Besides putting the ITEC Programme to immense use and its expansion since the visit of the Minister of External Affairs of India last year we have had several other capacity building programmes in a variety of fields.  These include the important cooperative programme in Parliament both for supporting its building as an institution and for the training of its members to become effective parliamentarians.  Similarly, we have worked with women’s groups, youth and young designers to enhance our people-to-people contact and provide them with an exposure to the Indian development experience in these fields including that of building indigenous capacity and enhancing their own empowerment. 

Defence

            One of the earliest collaborations which India and Ethiopia undertook was the establishment of the Harar Military Academy.  In its time it was the premier training institution in Africa.  At present we are offering support to train peacekeepers from Ethiopia under our bilateral programme and the Memorandum of Understanding on Police Training between the Guru Nanak Dev University and the Ethiopian Police College Sandefa is also due for intensive implementation.  India’s long history of successful peacekeeping in Africa has also seen the presence of the most decorated Indian battalions participating in UN peacekeeping operations under UNMEE for the last seven years.  At present these forces exist only on the Ethiopian side.  I would like to take this occasion to thank the Government and people of Ethiopia for the warmth and cordiality with which they have received, supported and praised the Indian contingent under UNMEE in Ethiopia.  I am sure that the several battalions which have served in Ethiopia would remember with great fondness their stay at Adigrat and also at Humera. 

International Issues

Pandit Nehru in his autobiography wrote about how events which seem distant from India affected him and he realized that no country lived alone in this world.  He wrote “as peace was said to be indivisible in the present day world so also freedom was indivisible, and the world could not continue for long part free, part unfree”.  He also wrote in the Discovery of India that in the future after World War II the role of Asia and Africa was certainly to be enhanced.  It is the same aspiration which guides us today to jointly secure for India and Africa their due place in international organizations particularly as permanent members of the UN Security Council so that our commitment to peace, security and development of the world can be given full play.

Excellencies, Ladies & Gentlemen,

            India and Ethiopia have pledged together ever since we associated as sovereign nations to make the world order more just and equitable.  We are committed to multilateralism and to strengthening the democratic structure of the United Nations and we will work together for reforms in the Bretton Woods Institutions, for a more equitable and development oriented agenda in the WTO and in the growing challenge of climate change.  We intend to work together to mitigate the effects of climate change and emphasise the need for equitable and fair burden sharing which must take into account historical emissions, cost-effective transfer of advanced technologies and the provision of additional resources.  Similarly, the fight against terrorism, against illicit trafficking in small arms, against drugs and on the constructive side on the promotion of pluralism and democracy, the pursuit of sustainable development and poverty alleviation and the fight against diseases, all provide areas for our mutual engagement to develop our countries, enhance our engagement and overcome the challenges both domestic and external for our societies. 

When we look to the future I think there are two things which will significantly determine any enhanced engagement of India and Ethiopia.  The first is if Bollywood films could be shot in some beautiful locales in Ethiopia and show Ethiopia to the Indian public at large in all its resplendent beauty.  The second is if Ethiopia starts playing cricket and joins the huge media attention that cricket attracts in India.  If we can achieve these two things in the near future I am sure our process of enhancing the engagement between India and Ethiopia would be wonderfully served. 

To conclude I would like to quote from India’s Nobel Laureate Poet Rabindranath Tagore:

“Thou hast made me known to friends whom I knew not.  Thou hast given me seats in homes not my own.  Thou hast brought the distant near and made a brother of the stranger.”

Gitanjali, Stanza 63

This is the tribute I would like to pay the Government and people of Ethiopia for the friendship with the Government and people of India.

Remarks by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia and Djibouti and Representative of India to the African Union and the UNECA

on the occasion of the inauguration of the

Pharmaceutical Industry of Cadila Pharmaceuticals (Ethiopia) PLC

Your Excellency Mr. Girma Birru,

Excellencies, Ambassadors of COMESA countries,

Chairman and Directors of Cadila Pharmaceuticals (Ethiopia) PLC

Ladies and Gentlemen,

            It gives me immense pleasure to be honoured today to be present on this important occasion when the growing cooperation between India and Ethiopia works in partnership with the private sector and contributes to the development of the health sector in Ethiopia.  I would like to compliment and congratulate the promoters of this project Mr. I. A. Modi, Chairman of Cadila Pharmaceuticals (Ethiopia) PLC and Mr. Mesfin Teshome for joining hands for this important venture which fits in perfectly with India’s goals of supporting the industrialization and development of Ethiopia. 

            India-Ethiopia relations have a history longer than the millennium and on the important occasion of the Ethiopian Millennium and the 60^th anniversary of India’s independence being celebrated in 2007 it is indeed fitting that a private health sector facility in Ethiopia as a joint venture of India and Ethiopia is inaugurated fully manifesting the new dimensions of Ethio-India cooperation.

            I am confident that in the search for fulfilling the Millennium Development Goals Ethiopia would find the Cadila Pharmaceutical facility a positive contribution from the Indian private sector.

A snapshot of the Indian pharmaceutical industry

India’s pharmaceutical industry today ranks 4^th in the world in volume and 15^th in value with competitive prices and high quality.  The Indian pharmaceutical industry at present is growing at about 10 per cent per annum and had a net worth of US$5.5 billion in 2005.  It is expected to increase to about US$13 billion by 2008 and double to US$25 billion by 2010.

The Indian pharmaceutical industry is one of the globally competitive industries in India with exports accounting for nearly 32 per cent of total revenue.  Indian companies currently manufacture about 20 per cent of the world’s generics and the USFDA has approved 74 manufacturing sites in India, the largest in any country outside the USA itself.

The Indian pharmaceutical industry caters to 75 per cent of the domestic Indian market of over a billion people.  India’s largest selling drugs are antibiotics and the fastest growing segments are drugs related to diabetes, heart disease and central nervous system treatments.  Indian companies spend nearly 5 per cent of their sales in research and development and India is fast emerging as the favoured destination for clinical trials.  Pharmaceutical MNCs outsourced $20 million worth of operations to India in 2007 and this is expected to grow to $2 billion in the next decade.

Indian companies have truly gone global even in the Pharmaceutical sector.  Acquisition of European and American companies continue and India has implemented a patent regime which takes into account the requirements of its own population as well as the growing R&D capabilities of Indian companies.  With such a background it is indeed noteworthy that Indian pharmaceuticals are acquiring a larger share in world markets including being the single largest market share holder in the Ethiopian market in terms of volume.  We are delighted that Indian pharmaceuticals have found a growing niche in the Ethiopian health sector and with the establishment of this facility in Ethiopia we are confident that the transfer of technology and creation of local employment and capacities would be clearly enhanced.  It is worth noting that in India the pharmaceutical industry provides direct employment to 5 million people and indirect employment to 24 million people.

Today is a day to salute the endeavour of the private sector in Ethiopia and in India which have made this possible.  It is also a day to pay tribute to the Government of Ethiopia for creating a positive ambience which welcomes such investment.  

            This project also supports not only import substitution in Ethiopia but would also cater to exports in the future particularly to COMESA countries.  In this connection I am delighted to see some of my colleagues, Ambassadors of COMESA countries in Addis Ababa present on this occasion.

            If I was asked to choose one point of emphasis for the inauguration today I would choose the high quality of production and the superb quality control systems.  In some markets it had become a fashion to criticize imports from India among others as being of low quality and standard.  While there would have been aberrations which through proper monitoring and objective criteria can be sorted out the reality is the 1.1 billion people of India live on Indian drugs and pharmaceuticals and as I have mentioned earlier a very large number of countries in the developed world also use Indian formulations and generics.  The reason why they do not have this kind of problem that is perceived here is because they monitor and resolve quality issues directly with Indian companies like Cadila.  This factory today is truly international class and has highest levels of quality control systems which indeed makes me proud.

22 September, 2007

Addis Ababa

* * * *

Statement by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia and Djibouti and Representative of India to the African Union and the UNECA

at the

Seminar on the Role of Ethiopian Diaspora in Socio-Economic Development

7 September, 2007

            India has a constructive policy of engagement with its Diaspora.  This has been assisted by an active Diaspora with a combined worth of about $250 billion which works through community organizations and retain close links with India and its embassies abroad.  In addition, the Indian Government has a variety of incentives and institutions to deal with the Diaspora.  Under the present Government, a Ministry of Overseas Indian Affairs has been established and this looks after the facilitation of matters both at policy and implementation level for the Diaspora.

            India has two kinds of communities within the 30 million Diaspora.  One is the non-resident Indians (NRIs) who continue to hold Indian passports and have generally migrated in the current generation to work abroad.  On the other hand, there are persons of Indian origin (PIOs) who would generally be citizens of another country who are considered PIOs if they held an Indian passport at any time or any of their parents or grandparents were citizens of India before 1955.  Within this PIO category there are the first generation brain-drain elements or third generation descendants of migrant labour from India in colonial times.

            India’s effort to engage with the Diaspora has several important components.  The broad policy today is to fully engage them in economic, capacity building and human resource development work, in fact everything except political rights.  The introduction of the PIO card which exempted PIOs from obtaining visas to enter India and brought them at par with Indian citizens for purposes of investment, education and other opportunities has now been upgraded to the Overseas Citizenship of India Card.  Under these initiatives the Diaspora has been brought at par with Indian citizens for all purposes except for standing for elections or voting.  A separate effort to introduce overseas voting for non-resident Indians is being considered. 

            Areas where special incentives have been provided to Indian Diaspora can be classified as following:

·        HRD and Science & Technology: In HRD there are special reserved seats for the Diaspora in institutes of higher learning and special quotas are kept for them often at a higher fees.  NRIs are also allowed to compete in examinations for Indian citizens to enter these educational institutions.  Similarly, returning S&T professionals were given special allocations by the Department of Science & Technology to harness their skills.  Today many people return to India to avail of these opportunities, especially given the emphasis on HRD and R&D in India.  15% seats are reserved for NRIs which is about 450 out of 3000 in private medical and dental colleges.

·        Economic Engagement: Unlike a foreigner, a Diaspora person can also invest in agriculture and real estate like an Indian citizen.  Repatriation of profits is also allowed.  There are no distinctions between Diaspora and Indians in restrictions in local investments.

·        The role of banks and financial institutions: Starting from the 1970s, Indian Banks have been offering attractive interest rates for investments by NRIs by a slew of special accounts such as Non Resident Rupee accounts and Foreign Currency Non-Resident Accounts etc.  Since the interest rates were much higher than the rates of interest offered by banks in foreign countries, NRIs made large deposits, which were considered safe and could be repatriated at short notice.  Special bonds issued between 1991 and 2000 also received massive response from Diaspora.  Currently, banks also undertake portfolio management for NRIs, which offer them attractive returns.

·        Use of Double Taxation Avoidance Agreements (DTAA): India has signed DTAA with many major countries.  As a result, NRIs have to pay tax only at one source for investments spread in India and other foreign countries.

·        Economic growth in India: India’s average economic growth, which is slightly behind China, has been pegged at 8 per cent for the last five years against 2-3% growth among some of major economies in Asia,   European countries and Americas.   Since the growth in India is driven largely by internal factors such as consumption by the burgeoning Indian middle class   estimated to be 350 million currently and growing by 5 per cent every year,   the economic growth potential is sustainable for many years to come.  The phenomenal economic growth has attracted the Diaspora to invest and return to India for better prospects. The fact that investments in India provide a return of 20% per annum has attracted both Foreign and Diaspora investors. Foreign investors in India have also found it profitable to use the management skills of the Indian Diaspora for successful ventures in India.

·        Growth of Indian private sector:  Indian private sector has been instrumental in driving an sustaining the economic growth in the country for more than a decade. The Diaspora has taken note of the giant strides made by the private sector and has invested in them and teamed up for many overseas ventures for better returns.  Further, Diaspora is also venturing into the Stock Exchange route to acquire shares and debentures of leading private companies as a means of investment portfolio management there by pushing up the wealth quotient of these companies.

·        Allure of Indian culture:  Indian art, architecture, rituals, dance, music, cuisine, couture and cinemas have always been dear to the Indian Diaspora and along with their growth all across the major continents; these forms have received wider audience.  Bollywood has also played a major role in the spread of Indian culture through its films.  Many rich NRIs have been drawn to India as they perceive the opportunity to combine the Indian heritage with their economic activities. 

·        Special treatment to Diaspora: Many State Governments in India such as Kerala, Gujarat, Punjab, which have large NRI communities living abroad, have established Diaspora facilitation institutions to attract investments and to better tourism potential.  The concessions offered to the NRI have attracted many of them to return home for better prospects.

·        Diaspora Day: The Government of India has endeavored to establish close links with the burgeoning Diaspora by a slew of activities.  The introduction of Pravasi Bharatiya Divas (Diaspora Day) in January every year to recognize the contributions of the Indian Diaspora has been an important landmark.  Every year thousands of NRI delegates come to India to attend this conference thereby establishing an annual link with the country and its people.

·        India’s democratic credentials:  The Diaspora has been greatly attracted to the commitment of India to a democratic model of development, where they feel comfortable to return and invest in relative safety.  They understand that in a democratic set up, the   policies of the Government will remain consistent to welfare and good governance. 

·        The question of brain-drain and brain gain:  India has been one of the successful countries which could not only stem the pattern of migration but also turn it around to get many bright   people among the Diaspora return back to the country due to its positive policies.  India’s economic prosperity, better educational standards, communication and medical facilities and improved R&D atmosphere have all contributed to this gain.  NRIs now feel that they can enjoy all the facilities that the world can offer while living in a free society imbibing the culture and lifestyles they have been accustomed to. 

·        The Confederation of Indian Industry has created an Overseas India Facilitation Centre (OIFC) {www.oifc.in} which acts as an eye of the Diaspora by providing  help and advise to settle many issues in India including investment, property acquisition, portfolio management etc.

* * * * *

Statement by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia and Djibouti and Representative of India to the African Union and the UNECA

at the

Hibret Lelimat Ma’ekel Symposium on Diaspora: In partnership with the Addis Ababa Millennium Secretariat

30 August, 2007

International experience, needs and processes on Diaspora

            India has a constructive policy of engagement with its Diaspora.  This has been assisted by an active Diaspora with a combined worth of about $250 billion which works through community organizations and retain close links with India and its embassies abroad.  In addition, the Indian Government has a variety of incentives and institutions to deal with the Diaspora.  Under the present Government, a Ministry of Overseas Indian Affairs has been established and this looks after the facilitation of matters both at policy and implementation level for the Diaspora.

            India has two kinds of communities within the 30 million Diaspora.  One is the non-resident Indians (NRIs) who continue to hold Indian passports and have generally migrated in the current generation to work abroad.  On the other hand, there are persons of Indian origin (PIOs) who would generally be citizens of another country who are considered PIOs if they held an Indian passport at any time or any of their parents or grandparents were citizens of India before 1955.  Within this PIO category there are the first generation brain-drain elements or third generation descendants of migrant labour from India in colonial times.

            India’s effort to engage with the Diaspora has several important components.  The broad policy today is to fully engage them in economic, capacity building and human resource development work, in fact everything except political rights.  The introduction of the PIO card which exempted PIOs from obtaining visas to enter India and brought them at par with Indian citizens for purposes of investment, education and other opportunities has now been upgraded to the Overseas Citizenship of India Card.  Under these initiatives the Diaspora has been brought at par with Indian citizens for all purposes except for standing for elections or voting.  A separate effort to introduce overseas voting for non-resident Indians is being considered.

            Areas where special incentives have been provided to Indian Diaspora can be classified as following:

·        HRD and Science & Technology: In HRD there are special reserved seats for the Diaspora in institutes of higher learning and special quotas are kept for them often at a higher fees.  NRIs are also allowed to compete in examinations for Indian citizens to enter these educational institutions.  Similarly, returning S&T professionals were given special allocations by the Department of Science & Technology to harness their skills.  Today many people return to India to avail of these opportunities, especially given the emphasis on HRD and R&D in India.  15% seats are reserved for NRIs which is about 450 out of 3000 in private medical and dental colleges.

·        Economic Engagement: Unlike a foreigner, a Diaspora person can also invest in agriculture and real estate like an Indian citizen.  Repatriation of profits is also allowed.  There are no distinctions between Diaspora and Indians in restrictions in local investments.

·        The role of banks and financial institutions through NRI facilities, FCNRs, special rates for bonds between 1991 and 2000.  Massive response from Diaspora.

·        Use of Double Taxation Avoidance Agreements.

·        Economic growth of India has attracted Diaspora to invest and return to India for work.  Greater use of foreign investors of Indian Diaspora in their management capacities. 

·        Allure of Indian culture for rich Diaspora to return to India to avail of important economic opportunities.

·        Establishment of special Diaspora facilitation institutions by specific state governments particularly those having large communities abroad e.g. Kerala, Gujarat and Punjab.

·        The question of brain-drain and brain-gain

·        Commitment of India to a democratic model of development.  High growth rate attracts personal and institutional investment.

·        Pravasi Bharatiya Diwas – Diaspora Day, January every year with awards and an engagement exercise.

·        Enhanced role of private sector.

·        The Confederation of Indian Industry has created an Overseas India Facilitation Centre (OIFC) [www.oifc.in] which acts as an eye of NRIs and PIOs. 

* * * * *

REMARKS BY H.E. MR. GURJIT SINGH,

AMBASSADOR OF INDIA TO ETHIOPIA, DJIBOUTI

AND REPRESENTATIVE OF INDIA TO THE AFRICAN UNION

The Foreign Policy of a Developing Country

Distinguished Chairmen and members of Parliament,

            If you view Africa from India, you actually think of a neighbour because the shores of Eastern Africa lie just across the Indian Ocean and have been visited by Indian seafarers and traders for centuries. Even the ‘Father of the Nation’ Mahatma Gandhi visited Africa along the coastline first at Lamu, moving to Zanzibar, Mozambique and finally to South Africa.  Thus, Africa is not seen as a distant continent but a neighbour across the sea in the development of India’s foreign policy.

            The end of the Cold War and the breach of the Berlin Wall set into motion a process of accelerated globalisation which allowed the emergence of cross-border challenges which have become important features of current international relations. The foreign policy of India, naturally has had to work within these changes and adapt to the new environment.

            India today has 116 embassies abroad and the Embassy in Ethiopia is one of the oldest having been established in 1950.  The Ministry of External Affairs has less than 5000 diplomats and is one-fourth the size of the Brazilian Foreign Service and one-seventh the size of the Chinese Foreign Office.

            The foreign policy also manifests the major changes which have occurred within India, particularly since 1991.  As we approach the 60^th anniversary of our independence this year India’s international prospects are better than ever before.  Since 1991, India has taken the road to fulsome reform and economic liberalisation of a kind which few had anticipated either in its initiation or in the results that we see today.  Consequently, there has been a spectacular increase in India’s engagement with the world, including with Africa and Ethiopia where the time coincided with another series of changes here.  For India, it has become increasingly important to look for an international environment which is stable and peaceful so that our contribution to our own development goals and those of our friends and neighbours can be enhanced.  We also do not wish to be passive observers but want to contribute to the reordering of the global stage.

            While rising to meet the challenges of the post-war globalising world, India has created notable continuity in the basic elements of its foreign policy.  At the centre of this, has been the desire to maintain an autonomy in our decision-making.  This includes freedom of thought and action and remains the essence of our acceptance of the principle of Non-Alignment.  Such also was the basis of our adherence to the five principles of peaceful co-existence, Panchsheel, which India had jointly enunciated with China in 1955 and which we believe still have an important relevance to present day international relations.  Other elements of the continuity of our foreign policy include the upkeep of friendly relations with all countries of the world whose number has indeed been expanding, the resolution of all conflicts through peaceful means and the search for equity in the manner in which international relations are conducted.  Thus, there is a firm commitment for the pursuit of India’s national interest, the promotion of multi-polarity in world relations and sharing its developmental experiences with other developing countries.  For the first time in the last 60 years India’s relations with all major countries are improving simultaneously whether it is our own neighbourhood, the rest of Asia, Europe and the United States or Latin America and not least of all. Africa.

            In the pursuit of such a foreign policy, India has sought a proper role for itself in the world political and economic system and has sought to bring about multi-polarity in the conduct of international relations.  Naturally, to follow this idea, India supports the strengthening of multilateral institutions as we believe that they are indispensable to deal with global challenges such as terrorism, proliferation of a variety of weapons of mass destruction, diseases like HIV/AIDS, malaria, tuberculosis, avian flu and cross-border drug dealings.  This multilateral approach also allows us to bring together the gains in science and technology and the growing academic excellence around the world so that they can be harnessed to overcome the detrimental impact of poverty, disease, climate change and environmental degradation.  India firmly believes that there is no single country or regional grouping, whatever be their basis of power and economic strength, who can hope to deal with such challenges by themselves.

            In this emerging multi-polar world, there is a clear requirement to create a paradigm of cooperation which would provide global responses to global threats.  India has particularly focussed on the strengthening of multilateral institutions like the United Nations to boost comprehensive reforms.  We are particularly keen that the reform of the United Nations and its organs, including the Security Council, take on board the aspirations and hopes of the majority of the membership of the United Nations, as only through this, would multilateralism become effective in dealing with global challenges.  In any reform of the United Nations, a restructuring of the Security Council must be a priority as India believes that in its present composition, it is at least two generations behind contemporary geo-political realities.  We believe that India with its growing population and economy which is growing at 8%, a tradition of contribution to international peace keeping and the maintenance of regional and international peace as well as its close relationship with the developing countries and its emphasis on science, technology, information and IT makes it a deserving candidate for a permanent seat in the UN Security Council.  Similarly, we believe that Africa must find its voice in the UN Security Council too and rectify the historic imbalance in that organ.  We are confident that our engagement with Africa and our mutual understanding of African and Indian aspirations serves as a good platform to take the reform of the UN system ahead.  Similarly, India’s position with regard to the WTO is now well known and we are clear that while the world needs new rules for trade, there must be a level playing field and an equal openness on all sides. 

India and Africa:

            India and Africa together have over half of the world’s population.  Our relationship is special as it is bound by a tradition of friendship and interaction for mutual benefit which have been given a new direction by greater collaboration in areas of technology transfer, trade and capacity building.  In fact, the tripod on which the India-Africa relationship stands today with the resonance of South-South cooperation is that of technology, trade and training.  There has been and continues to be a regard for India’s path of democratic development which many African countries see as a beacon.  There is a new expectation and optimism as modern India seeks to enhance its relationship with resurgent Africa to contribute to the development of a new international order.  A common understanding underpins the era of shared struggle against colonialism, apartheid and imperialism as in the 1990s, we all become more realistic and adapted to the present world as both India and Africa emerge to take their places in the sunshine of globalisation.  Due to this, our age-old relationship has been re-vitalised and today there is a distinct effort to have mutual complimentarity enhanced and greater content added to the friendship between India and Africa. 

Technology Transfer:

            There has been a series of initiatives which India has taken towards Africa so that the challenges of globalisation and development can be better met.  One of the most recent is an ambitious Pan-African e-network project that seeks to provide e-connectivity between the 53 countries of the African Union with India so that the development of science, technology and IT in India can be brought to touch the lives of ordinary Africans through the tele-medicine and tele-education segment of the project.  The brainchild of India’s President, His Excellency Dr. A.P.J. Abdul Kalam, the Pan-African e-network project is expected to revolutionise e-communication throughout Africa and replenish the huge reservoir of goodwill that exist on both sides.  Importantly, it will include technology and human resource development which are two important tenets of India’s Africa policy. 

Trade and economic cooperation:

Many Indian initiatives to enhance economic cooperation with Africa have been through the extension of lines of credit at the bilateral, regional and Pan-African level.  This is an effort to innovate new development partnerships to enhance economic and technological interaction. India is a member of the African Development Bank and the Afri-EXIM Bank through which an Indian Trust Fund, and an Indian Line of Credit respectively operates to achieve developmental goals in Africa.  At the regional level, India has Lines of Credit available with the East Africa Development Bank, the PTA Bank for the COMESA region, BOAD for the West Africa region.  In order to cover the gap which India has traditionally had with some West African countries, a Team‑9 approach was created under which US$ 500 million was committed for project partnerships with countries in Central and West Africa.  The number of countries joining Team‑9 has increased.  Similarly, there has been a Line of Credit of US$ 200 million to assist NEPAD under which developmental projects in Senegal, Mali and the DRC have been approved. At the bilateral level, Lines of Credit have been extended to Kenya, Tanzania, Mozambique, Zambia, Namibia and  Ethiopia where India has offered US$ 65 million for a rural electrification project.  Many of these bilateral lines were facilitated by the writing off of the debt owed by several African countries under the HIPC initiative which led to the restructuring of commercial debt.  This reflected India’s wish to engage with Africa in a new matrix of cooperation.

At present we have nearly $2 billion in lines of credit in Africa. which have been extended  basically  in two areas.  First, they help to strengthen the private sector and small and medium enterprises through transfer of technology as well as management and entrepreneurship.  This has contributed to the development of the private sector, contributed to the development of entrepreneurship and contributed to the development of employment opportunities in several African countries.  Secondly, Lines of Credit have focussed on project partnerships under which larger infrastructure projects have been financed and have contributed to the development goals and MDGs in several African countries.  These have included projects like telecommunications, railways, transport, power irrigation and related sectors.

            Connected to this has been the greater entry of Indian companies both public and private into Africa.  Under the greater understanding achieved by the financing of projects under Lines of Credit, the ability of Indian companies to provide competent services under internationally funded projects gave them a confidence which has led to a surge of investment of Indian companies in African countries.  In neighboring Sudan, India has invested in the energy sector to the tune of US$ 1.5 billion while in Ethiopia itself the growing private sector opportunities have seen more than 200 Indian companies invest in Ethiopia, mainly in the small and medium enterprises and floriculture.  We believe that the greater freedom accorded to the Indian private sector under the liberal economic norms in India allows Indian companies to reach out and seek new economic opportunities and this brings them to Africa in good measure.  Thus, the economic engagement of India with Africa through the terms of Lines of Credit and investment by private and public sector companies have been important elements in creating a new paradigm of economic cooperation.

            India-Africa bilateral trade has risen from $ 967 million in 1991 to $ 9.14 billion in 2005.  India’s exports to Africa in the same period have increased from $ 394 million to $ 5.4 billion and account for nearly 7% of India’s export basket.  It is significant to note that with Africa, there is a near balance of trade though this may not be true for every country or region.  It is also significant that the impact of growing liberalisation in India has allowed Indian companies to be more competitive and challenge traditional economic partners of African countries.  There is also a greater liberalisation accorded to Indian companies to invest overseas and the surge of Indian investment in selected African countries is very visible.

            At this stage, I would like to highlight two significant developments on the economic and commercial aspects.  The growing openness of the Indian market and demand for some products, particularly natural resources and agricultural products in India is growing.  This allows African countries to tap the Indian market by assuaging the demand for particular products in India.  I am aware that some countries in Africa run a trade surplus with India by tapping such demand.  For instance, in Senegal, there is an Indian investment in a joint venture to produce phosphoric acid from the large deposits of phosphorus in Senegal.  The exports from that joint venture to India actually create a trade surplus for Senegal in its trade with India.  This example can be emulated by other countries having significant resources which are in demand in India.  Where agricultural products are concerned, Tanzania, for instance, exports such a large amount of cashew-nuts to India that they can run a trade surplus with India.  In Ethiopia, we are looking at the production of oil seeds and pulses on a consistent basis to tap into Indian demand for such items.  We have to understand the reality that Africa is a great producer of agriculture products, particularly in horticulture and floriculture but most of these have European destinations in mind and are encouraged by the leverage accorded to them by the Cotonou Agreement.  The same enthusiasm can be utilised to turn production towards Indian demands to enhance African exports to India since many of the current agriculture exports from Africa actually compete with Indian exports, e.g. coffee, tea, flowers and the like. 

            The other aspect that I would like to highlight is that as a conscious policy, India would like to take the path from trade to investment in its relationship with African countries.  In 2002, the Focus Africa programme was used to highlight greater opportunities which Indian companies could tap in Africa and support was granted to Indian commercial institutions who would study such opportunities and enhance their contacts.  Keeping this experience in mind, and the experience of the Lines of Credit extended to African financial institutions, it was decided to launch the India-Africa Project Partnership in which the lead was taken by the Confederation of Indian Industry (CII) and the EXIM Bank of India and supported by the Ministries of External Affairs and Commerce & Industry.  The first of these partnerships was in 2005 under the objective of “Expanding Horizons” and in which 160 delegates from 32 African countries participated in a Conclave held in November 2005.  Over 70 projects estimated to cost about $ 5 billion were discussed at the Conclave and efforts are underway to bring them to formulation and implementation stage.  Now we are entering the second year of the project partnership.   The programme for 2006 was more intricate and focussed on “India: A Partner of Choice” and concluded with a major conclave in New Delhi in October 2006.  Prior to this, there were three regional conclaves in Africa – in Lusaka, Addis Ababa and Accra where Indian companies travelled to take forward this project partnership and establish first-hand contacts with African companies in the respective regions.  Subsequently, before the main conclave took place, similar conclaves were held in major Indian cities like Mumbai, Kolkata, Hyderabad and Pune to sensitise a large number of Indian companies on the emerging opportunities in Africa and bring the results of the regional conclaves to them.  The major thrust of these conclaves was to enhance the possibility for Indian participation in African projects through a public-private partnership and to enhance the impact of India’s capacity building and resource mobilisation initiatives to seek greater avenues of direct finance through the use of public and private banks and new financial instruments.

            To summarise, I would say that this part of the growing relationship with Ethiopia excites me tremendously as I can feel the positive vibrations which this segment provides.

Capacity Building:

            Capacity building is one of the most significant contributions that India has made to Africa over a period of time.  India’s own success in human resource development has encouraged African students to look at India as an alternative source for education.  Under the Indian Technical and Economic Cooperation programme, more than 1000 people from Sub-Saharan Africa received training annually in India and since 1964, India has spent more than US$ 1 billion for such assistance including training, deputation of experts and implementation of projects in African countries.  Besides this, many African students go to India either on scholarship or a much larger number on self-financing basis and today, we see nearly 15,000 students from Africa studying in India while Indian professors, doctors, engineers, accountants and other experts are present in several African countries.  In this, the example of Ethiopia which has its own commitment to human resource development is a shining one.  The number of Ethiopian students seeking to utilise the Indian scholarship schemes is increasing; the number of Ethiopian students going to India to study has gone up tremendously and the number of Indian teachers and professors who work in Ethiopia to fulfill the developmental goals of HRD is growing.  The entry of private sector IT training companies from India into franchise arrangement in African countries and contributing to the growth of IT-related HRD is a new phenomenon which helps African countries generate trained manpower to grasp global opportunities.  Similarly, under the ITEC programme, India has created capacity building institutions in several African countries which are providing regional benefits.  The Entrepreneurship, Development and Training Centre in Senegal, IT Training Centre in Ghana, and Plastic Technology Training Centre in Namibia are some such examples under which training facilities have been created for local needs and have slowly been expanded to cover the development of regional HRD capacities.  We believe through these functional contributions, India’s capacity building projects help to create backward integration with growing industrialisation in many of these countries.

            In 2005, India became the first Asian country to be a full member of the Africa Capacity Building Foundation (ACBF) with a contribution of US$ 1 million to the ACBF mission to building capacity for sustainable development and poverty alleviation in Africa. India has also offered capacity building support to the African Union and to regional economic communities with several of whom we have MOUs for cooperation, like SADC, COMESA and the EAC.  An MOU with ECOWAS and ECCAS is under consideration.

Support to Democracy:

            Another important initiative is to support the African desire for greater democratisation.  The winds of change in Africa are clearly blowing which India has watched with great satisfaction.  We believe that democracy has to be rooted in local cultures and requires a process of political education and sensitisation. As the world’s largest democracy, India believes that it is a model for many developing countries, particularly since we have also shown that our developmental model in a democratic framework which is multi-party, multi-linguistic, multi-ethnic, multi-religious, is a viable one.  We have the capacity to support the development of democratic institutions in African countries and would continue to do so.  In fact, our ITEC programme has now got a window called the “Global Democracy Initiative” under which India supports the strengthening of institutions to conduct elections, support the strengthening of Parliamentary institutions and training of Parliamentary officials and Parliament as well as officials of Election Commissions.  We have also supported civil service reform and rationalisation of capacity building and the development of the civil service and public service commissions on the Indian model.  This support would remain sustainable as we believe this is a part of a process and needs to be continuing rather than an end in itself.

Support to Peace and Security:

            Another aspect that now I come to is the maintenance of peace and security which unfortunately continues to have an important role in the African continent.  The scourge of war needs to be removed from our midst and open space for political activity and dialogue needs to be created.  There have been several initiatives within Africa itself and the African Union Commission also has spent a lot of time on peace and security.  India’s position on this has been to support processes where conflict can be ended, peace maintained and space created for political dialogue.  Thus, Indian Peacekeeping Forces under the United Nations have acquired a significant role in several African conflicts and I believe that they have been successful in meeting the objectives set for them.  The earliest Indian peacekeeping Forces were involved in the Democratic Republic of Congo during the Katanga/Shaba secession and have since played a role in many other African countries.  Currently,over 9000 Indian troops are deployed under the UN flag under UNMEE in Ethiopia and Eritrea; In Sudan and in the eastern part of Democratic Republic of Congo where notably Indian, Pakistani and Bangladeshi troops work together for the maintenance of peace and security.  During the Second AU Summit in Mozambique, the Indian Navy had provided security cover in the Indian Ocean as a symbol of our closeness and support to Africa.  Besides this, India has also sent military training teams to countries in peace time to support the professionalisation of military institutions and we have had such training teams in Namibia, in Lesotho, in Tanzania, in Rwanda, in Zambia at varying times.  Some of you may recall that Ethioipa’s Harar Military Academy was set up by India for the benefit of the Ethiopian military.  At present, this approach is largely request-based and a part of our capacity building programme.

Humanitarian assistance:

            One of the most recent engagements that India has with Africa is to share its expertise to counter disease, drought, famine and environmental degradation.  Several initiatives have been taken to share India’s growing strength in the field of pharmaceuticals research and development and India’s ability to produce high quality medicines at affordable cost with African countries.  This brings an important factor to bear on the treatment of diseases like HIV/AIDS, tuberculosis, malaria and now the avian flu.  Similarly, support in cases of drought and famine through the supply of Indian food, milk and medicines for providing humanitarian relief has become a matter of policy in India’s relations with developing countries.  In this, the success of India’s Green Revolution, where from a net food importer we have become an exporter of food grain, provides us the ability to share what we have with others in times of need.  Similarly, the success of ‘Operation Flood’ in India which converted India from a country with a shortage of milk to a huge surplus has also allowed us to alleviate shortages of milk in some places.  Climate change and environmental degradation, and issues related to water resources are also issues on which we share experiences with African countries.  Most recently, through the Delhi Sustainable Summit organised by the Tata Environmental Research Institute, several of these issues including poverty alleviation and meeting the Millennium Development Goals, India’s expertise is being tapped more multilaterally than bilaterally, in a series of projects and meetings to share experiences and obtain common achievement.

            Mr. Chairman, Ladies and Gentlemen,

            With this rather elongated view of India’s engagement with Africa, I believe I have conveyed to you that the new matrix of engagement between India and Africa is so multi-faceted, and has so many different and substantive elements that allow us to move from a largely political engagement of the period of decolonisaiton to a strong engagement on a developmental agenda in recognition of the priorities which are prevalent today.  The growing number of visitors from Africa to India at all levels and specially from Ethiopia in the last few months, give us great happiness that the path we have walked on in recent years in the search for development in a democratic framework attracts resonance in Africa.  This multi-faceted cooperation, the sharing of experiences and commitment to search for a common destiny which change the system of international relations as it prevails today and provides improvements in the lives of our peoples, gives me great hope in what India and Africa will do together.

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Address by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia

at the

Symposium “Cinema Now: Here & There”

On the occasion of the Inauguration of the Film Week

Hilton Hotel, Addis Ababa

24th November 2006

Cinema & Society – what we see and what we don’t

            Among India’s well known identities is the Indian cinema.  It is well known abroad and in India for its entertainment value, its aesthetic aspects and the fact that it provides an industrial aspect which contributes to the economy.

            It is widely known that nearly 1000 films are produced in India every year in the main centres of Mumbai, Chennai, Kolkata, Bangalore and in Kerala.  The overall impact of Indian cinema on society is thus pan-Indian and extends to the Indian diaspora overseas which is now nearly 20 million strong with an estimated combined wealth of more than US$300 billion.  Indian cinema also has an impact in many other countries even when there is only a small diaspora population particularly in Africa and Central Asia.  Ethiopia is one of those countries where people-to-people contact with India has been established through the entry of mainstream Indian cinema and popular recognition of the ethos of Indian cinema and its stars.

            It has given me pleasure, as a film buff, before I became diplomat, to find out here that Indian films like Mother India and a succession of films of later stars are well known in Ethiopia.  This shows how close our relationship has been. 

            We believe that cinema is an art and a science.  It is also an industry.  We believe that cinema as a medium of expression can play a big role in supporting the news media to project values which allow a society to develop.  It is well known that in India the nature of the themes that cinema portrays change as the socio-economic development of India changed.  In the 1950s and 60s, there was an emphasis on the common man and socialist aspirations.  By the mid 1970s a more individualistic response to social evils came forth and the liberalization period of the 1990s has led to a greater emphasis on family values, romance and the feel good factor reflected in cinema much as it was being reflected in a large segment of Indian society.

            Interestingly, the evolution of Indian cinema owes much to the private sector since it has been entirely in the private sector that the Lumiere brothers brought their films to India in 1896 and the first Indian film Raja Harishchandra was made in 1913.  The first Indian talkie was Alam Aara and was produced in 1931.  The Indian cinema industry has almost no governmental role except the Censor Board.  It was only to promote a parallel and a new wave of cinema in the 1970s that the Film Finance Corporation and subsequently the National Film Development Corporation and the Film & Television Institute of India were created to provide institutional bases to support new filmmakers.  Fortunately the two trends have merged and mainstream cinema makers no more held back from making films which can be called crossover or parallel in cinematic content.

            Cinema in India is larger than life.  Some say it reflects life itself but whatever it may manifest it plays a very big part in India.  The impact of cinema on India is so big that several film stars have been nominated to Parliament including Prithvi Raj Kapur, Vaijayanti Mala, Hema Malini and others because the political institutions believe that cinema stars have a ready image which can be used for propagation of national goals.  This was converted by other film stars to create political movements.  For instance, MGR and Jayalalitha have both been Chief Ministers of Tamil Nadu as had NTR been the Chief Minister in Andhra Pradesh.  Several film and TV stars are even now Members of Parliament in India and have held ministerial posts.  Till recently Mr. Sunil Dutt, who is well known for his role in Mother India, was the Minister for Sports and Youth Affairs in India till his unfortunate demise over a year ago.  There are several aspects of this that we believe we can discuss with interested Ethiopian authorities, institutions and filmmakers which led us to hold this seminar and provide a forum for such discussions.

            We see cinema as a medium of expression where the artistic community will find a role for itself in a more organized manner.  Expressions of Ethiopian cinema when taken abroad can also present a view of Ethiopia which could deviate significantly from news reports since their coverage and themes can be different.  Thus the projection of cinema overseas can provide a useful aid to altering a country’s image and we believe that the feel good factor of Bollywood cinema has shown this for India.  This is one idea that we can discuss. 

            I certainly believe that greater information about Ethiopia is necessary overseas and some times free expression through cinema reflecting contemporary realities and historical images is often more powerful than officially sponsored documentaries.  Thus the image of India as a modern industrial society has certainly benefited from its projection through Bollywood cinema.  Perhaps Ethiopia could share that experience. 

            In this era of competitive identities often countries have to do more to raise awareness and focus on aspects which go beyond hyperbole to boost international profile of themselves.  This can have many ways but cinema can also be one of them because through it a clear message which is not only political or propagandist can be spread.  After all can one forget the impact Crocodile Dundee had for Australia and the impact Lord of the Rings or Monsoon Wedding had for India?  Aspects of public diplomacy can greatly benefit from promotion of cinema.  When you start building a brand for a country its cinema often plays an important role and perhaps this symposium can look at this aspect as well.

            Another experience that we can share is the organization of the Indian cinema industry with its large private sector initiative, the studio system, the financing system, the exhibition system and the entire gamut of employment that it generates.  The Indian film industry is traditionally known to be a financial iceberg with only partial visibility.  Its total turnover is expected to be $1 billion at the tip and it employs six million people in the formal sector and at least three times as many in the informal sector.  There are 12,000 theatres in India and the revenue from sale of tickets which was 90% of the of the cinema revenues ten years ago is still at 80% despite the onslaught of television and DVD.

On the other side of the same coin are the facilities which this system can create and which is what Ethiopian filmmakers are probably looking for.  To nurture a young cinema industry requires institutional support and where Government is the biggest institution I believe a role of Government would become important.  I trust that this forum that we have initiated would contribute to such discussions in this direction as well.

            Projection of Ethiopian cinema overseas can also become a strong tool to promote tourism as the image that cinema can create, the locales of Ethiopia that it can show, the stories that it can tell will generate more interest.  To have an international audience Ethiopian cinema would need to have sub-titling in a variety of languages.  If at the end of this forum we get a suggestion that we can put together a package of Ethiopian films then I can work with my counterpart, the Ethiopian Ambassador in New Delhi, and see that within a year or so a selection of Ethiopian films can be shown in several cities of Ethiopia as a part of promoting Ethiopia and bringing an understanding of Ethiopian cinema into India.  In this regard we have several film clubs which have always catered to film buffs who look beyond mainstream cinema and welcome non-Hollywood foreign cinema through their clubs.  Such clubs can be utilized to promote Ethiopian cinema among Indian audiences.           

            I look forward to generating a focussed discussion at this symposium both on the cinematic and creative aspects as well as on the filmmaking, capacity building and industry aspects and I wish you all success.

* * * * *

Address by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia

at the

Symposium “Cinema Now: Here & There”

On the occasion of the Inauguration of the Film Week

Hilton Hotel, Addis Ababa

24th November 2006

Films & Industry – agony and ecstasy

            Indian cinema as industry has a large impact both for the films which make a lot of parts move together and money in India and overseas.  But for a country like Ethiopia I think the more relevant factor would be to see how lessons can be learnt from Indian cinema.

A support to filmmaking could perhaps be considered on the lines of the National Film Development Corporation (NFDC) which was established in 1980 with some funding by the Government which allowed the NFDC to promote good cinema.  Many of India’s bright cinema makers today started their careers through financing by the NFDC.  After initial success they could raise money on their own but the NFDC was critical in providing them with a breakthrough.  A similar effort has been made by the Film Financing Corporation in 1969.  Both these organizations had some Government funding and some support from other sources in India.  Similarly, the development of multiplex cinema halls cum malls could create a new economic fulcrum for the life in Addis Ababa and in major cities in Ethiopia.  A third area is that Indian films can be enticed to shoot in Ethiopian locales.  Indian mainstream cinema is looking strongly at filming overseas and in recent years well known films like Kabhi Khushi Kabhi Ghum (England), Kaho Na Pyaar He (New Zealand), Shaadi Se Pehle (Malaysia), Gangster (South Korea), Krrish (Singapore), Hum Dil Del Chuke Sanam (Hungary), Fanaa (Poland) and several films in South Africa and Switzerland have almost become the norm.  Besides the large Indian global diaspora the other important issue for overseas locales is the benefit which comes to Indian film producers who often can overcome constraints for shooting within India either due to logistics or trying to ensure the presence of the stars who do multiple shifts.  By bringing the whole unit to one foreign location they provide a new adventure for Indian audiences and can often save costs by finishing their schedules in one overseas locale in a fixed time since the unit, technicians and stars have committed their time and cannot do alternative shooting in the same location.  Logistical and production costs often, therefore, become cost effective due to clearer scheduling at foreign locales.

            In addition to this is the growing effort by governments and tourism and film commissions who enhance the viability of Indian cinema shooting abroad through incentives and hospitality.  Many foreign governments realize that if locales of their country are used in Indian cinema a growing surge of Indian tourists often visit those countries.  Singapore and Switzerland are two countries who have benefited from Bollywood films being shot in their countries.  And now Thailand, Dubai, Austria, South Africa, Canada and more recently South Korea, Italy, Croatia, Poland and Hungary have joined the lucrative business.

            When the film Krrish was shot in Singapore last year, the Singapore tourism Board indicated that the film allowed Singapore to be seen by Indians in a different way and Singapore expected tourist arrivals to increase from 600,000 to 700,000 within a year.  The Singapore Tourism Board reportedly invested US$6 million under a scheme called ‘Film in Singapore’ that provided subsidies to international film producers of up to 50%.  The Korea Tourism Organisation while not providing so many incentives certainly had benefits from the shooting of Gangster almost exclusively in that country, while the Polish Tourism Organisation used the film Fanaa to launch its new tourism campaign.

            South Africa has taken this very seriously and the number of Indian films being shot in South Africa has increased rapidly to almost as many as were shot earlier in Mauritius and Seychelles.  Some Indian films have also been shot in Kenya and Zimbabwe.  In fact, South Africa had become popular to such an extent that even ad-filmmakers often used South Africa locales and an Indian film star has been used as a brand ambassador to promote South African tourism.  Similar efforts could be emulated as part of tourism promotion which would lead to a better flow of tourists and people between India and Ethiopia.

            What does an Indian film producer look for when he goes for overseas locations?  He certainly looks for worthwhile locales but to put them on you also need to have shooting facilities and equipment available.  If such equipment was available for the domestic film industry it could become an incentive to hire it for foreign film crews and I believe a system of support to cinema as industry should take into account establishment of studio and filming equipment which would help both local and foreign filmmakers.

            Another thing which cinema makers look at is the distance from India.  But given the fact that they have gone to Australia, New Zealand and Canada should not deter them from coming to Ethiopia which is so well connected by flights from Mumbai and New Delhi.  But the fact that despite being closer they do not come to so many continental African destinations other than South Africa and the islands of Mauritius and Seychelles has a lesson in it which can be studied and learnt.  If it is taken on as a matter of policy to develop cinema as an industry in any such policy the role of shooting by foreign film crews should play an important role.

            It is also useful to remember that the value of locales in cinema goes beyond the location itself.  It includes facilities, connectivity, hospitality, availability of general facilities and an acceptance by local people and governmental institutions of the value of such shootings.  I believe that Switzerland and the UK have looked at this whole concept very clearly to attract Indian film producers.  On the other hand, the South African experience is the revealing one.  After initial years of euphoria with a surge of Indian films being shot in South Africa and the holding of mega events with Indian film stars in South Africa, the rush to shoot in Cape Town has eased out.  This is not because of the location becoming stale but because other countries and cities are offering incentives now which Cape Town and South Africa are unable to do.  I understand from my colleagues in South Africa that over the last two years or so the Indian film industry has hardly shot any movies in South Africa.  There are lessons certainly to be learnt from this.

            In some countries like New Zealand, Australia, Italy and the UK film commissions have played a bigger role than the tourism commissions but have worked together to provide incentives.  In some countries like Singapore and South Korea support have come from tourism commissions alone and the push for cinema as an industry and as an aide to tourism development is something that we can consider.

            We have taken this initiative as part of India’s ongoing interaction with Ethiopia which is strong at both the people-to-people level and the governmental level particularly on the business side.  We believe that a more holistic view will allow us to bring the popular acceptance of Indian cinema and link it with our business identity in Ethiopia and try and present an overall picture of cinematic expression, tourism promotion and development of the film industry besides the promotion of Ethiopian cinema in India as one large package.  I hope from this symposium we will get valuable suggestions which would start a process of consultations which could then lead to developments in an organized manner.

            I invite you all to join us for a week of Indian cinema beginning tomorrow showcasing different aspects of Indian cinema in four different languages.

            Thank you.

* * * * *

Statement by H.E. Mr. Gurjit Singh, Ambassador of India to Ethiopia and Djibouti and Representative of India to the African Union and the UNECA

at the

COMESA Business Forum

Djibouti, 11^th November, 2006

India and COMESA: A new emphasis on economic partnership

Chairman, Excellencies, Ladies & Gentlemen,

            I bring you the fraternal greetings of the Government and people of India and congratulate you on the conduct of this Business Forum along with the Summit of the COMESA nations.

            India today is the 4^th largest economy in terms of purchasing power parity with a per capita GNP of $3100/-.  With a saving rate of nearly 32% and an investment rate of 33% India has had a sustained GDP growth rate of over 8% for the last three years.  Foreign exchange reserves in India have risen to over $150 billion and external trade has crossed the figure of $250 million.  India is a large and growing free market economy of more than a billion people out of which 52 million families have an annual income of between $2000 to $22,000.  By 2012, 54% of the Indian population would be between ages of 20 and 55.  India is also the second largest food producer in the globe and is attracting FDI and FII investments.  In fact the booming stock market in India today has taken for the first time the market capitalization on the stock markets higher than the GDP of the country.

            Excellencies, Ladies & Gentlemen, it is this India, emerging as an economic power house, with a stable democratic polity in a multi-cultural country that wishes to raise its engagement with the friendly countries of COMESA to new heights.  Since its own independence in 1947 and earlier, India has stood by the struggle for freedom by the people of Africa and in this a close relationship between India and countries of Eastern and Southern Africa has developed.  After decolonization in Africa, India was involved in a new partnership focusing on socio-economic development and sharing our own experience in creating economic prosperity in a democratic framework.  Even while India has been a developing country it has always stood by its African brothers and tried to contribute to the development of capacities, infrastructure, education, ICT and small industries among others so that our own experiences could be shared substantively with the peoples and countries of Africa.

            Excellencies, Ladies & Gentlemen, today as we meet in the sylvan surroundings of Djibouti we just have to look across the Ocean to see that India is a friendly neighbour so close both in geography and in ideas.  We are natural partners with a long heritage and a great future ahead of us.

            In the 21^st century, India is now moving to a stage of development under which we aim to carry our country and its people to become a developed nation by 2020.  We can see that Africa, in general, and COMESA, in particular, is also moving in similar directions, to end conflict and deprivation and create a better future for their people.  With its large natural resources and immense human potential we are confident that COMESA can become an even bigger and more vibrant partner of India.

            India has had the fortune of well established and diversified relations with the countries of COMESA.  As African countries have institutionalized themselves through the regional economic communities and pan-African institutions, India has sought to bring the vigour of its bilateral relationship into the new institutions.  To this end we have developed a new relationship with the African Union and have also focussed on the regional economic communities among which COMESA has a pride of place. 

            I wish to compliment the countries of COMESA for the progress that they have made in moving towards a common market and developing their institutions.  India would like to enhance its engagement with COMESA and work on the priorities and sectors that it has identified including food security, tapping of natural resources, industrialization, food processing, development of water resources and appropriate and alternate technologies. 

India-COMESA MOU

            India has a longstanding relationship with the COMESA Secretariat. This was formalized by signing of a MoU for cooperation between India and COMESA on 3rd February 2003 when H.E. Mr. Anil Kumarsingh Gayan, Minister of Foreign Affairs and Regional cooperation of Mauritius, led a COMESA delegation to India.  Since then, India has been extending assistance to COMESA countries including deputation of experts on irrigation to study the irrigation potential of some of the COMESA member countries, and training in pharmaceuticals for drug registration and harmonization processes. 

            COMESA, with 405 million people encompassing 20 countries stretching from Egypt and Libya, to Zambia, to Mauritius and Seychelles, is the single largest economic grouping in Africa. The organization has set ambitious goals to achieve economic integration through development of vital sectors like agriculture & irrigation, mining, infrastructural inputs like rail, road, water linkages and power. They are also moving towards forming a common market, a customs union and other steps to create a truly integrated regional grouping.

            COMESA has identified India as its natural partner to assist it in its ambitious development programme. It is based on a long record of association, assistance and shared ideals and experiences. The rapid progress made by India in recent times has attracted the COMESA member countries who would like to replicate that success in their region.

            According to the Occasional Paper recently brought out by Exim Bank of India, entitled "Select COMESA countries: A study of India's Trade and Investment Potential", machinery and transport equipment, petroleum products, paper and wood products, textiles, plastics and linoleum products, rubber manufactured products, chemicals and related products, agro products and pharmaceuticals are the potential product groups for India's trade with COMESA region. Indian companies have set up a number of joint ventures/wholly owned subsidiaries in the region. These include software development services, broadcasting and telecasting, plastics, chemicals, textiles, electricity generation and transmission, and investment management services. Exim Bank's aforesaid study highlights tourism, pharmaceuticals, electronics, computer software and accessories, IT and related services, financial services, and textiles as some of the common sectors across most COMESA countries that hold potential for Indian investors.

COMESA Ministerial delegation visits India

On invitation of the Government of India, a twelve-member high level delegation from COMESA, led by the current Chairman of the COMESA Council of Ministers H.E. Mr. Mitali Kabanda Portais, Minister of Industries, Commerce & Investment Tourism and Cooperation, Republic of Rwanda arrived in Delhi on 4th October, 2006. The COMESA delegation also included Ministers from Zimbabwe, Uganda and Mauritius, the Secretary General of COMESA and senior officials from the Secretariat. The Vice President of Burundi, who was in New Delhi on a bilateral visit, also joined the COMESA Meet.  Official level delegation talks were held between the COMESA delegation and Mr. N. Ravi, Secretary, Ministry of External Affairs, on October 5, 2006. This was followed by ministerial level meeting on October 6, 2006, which was chaired by Mr. Anand Sharma, Minister of State for External Affairs.

            During the discussions, the two sides expressed the desire to enhance and upgrade the bilateral relations and to explore areas of mutual cooperation. COMESA has expressed its strong desire to seek India’s assistance in various fields including irrigation, enhancement of trade and investment, infrastructure projects like railways and power project. They have also sought India’s assistance in capacity building in various fields including education, science & technology, low cost housing, agriculture, SMEs etc.  A concrete plan of action would be formulated to carry out the various proposals that emerged in the course of discussions.

            The COMESA delegation also participated in the Conclave on 'India-Africa Project Partnership' held in New Delhi from 9-11 October 2006, organized by the Confederation of Indian Industries (CII). It was attended by large number of delegations and participants from 32 African countries as well as several institutions and agencies. The Conclave provided for private sector linkages to the emerging partnership between India and COMESA. 

            The COMESA Business Council (CBC) signed a MoU with the CII during the visit in October 2006.  The MoU is aimed at facilitating trade and investment, promote increased trade, transfer of technology and investment flows. It would also promote technical cooperation in different fields of economic activity including agricultural and mineral products, infrastructure development, exchange of information, collaboration in strengthening the business community, and development of SMEs.

Indian credit lines to COMESA

            During the Conclave, the EXIM Bank of India signed an agreement to extend a fresh line of credit of US$10 million to PTA Bank based in Nairobi.  Under the LOC, importers based in PTA Bank's member countries will make advance payment of 10% of contract value, and credit will be provided by Exim Bank for 90% of contract value to PTA Bank. Exim Bank will reimburse Indian exporters on shipment of goods. Credit period will be up to 5 years. Earlier this year, the Exim Bank had extended a fresh line of credit of US$ 250 million to ECOWAS Bank for investment and development purposes. 

            This is the seventh LOC extended by Exim Bank to PTA Bank. The total value of LOCs extended to PTA Bank over the past years amounted to US$ 40 million, of which US$13 million has been repaid. Under the LOCs, member states of COMESA undertook projects like sugar plant, cement plant, tissue paper plant, medical equipment and pharmaceutical products which were catalyzed under the LOCs. The funds are available to the Member States for importation of materials and equipment.

            The LOCs to PTA Bank are in addition to the 39 lines of credit amounting to US$2 billion already extended by the Exim Bank of India to various African countries and institutions, covering areas such as agriculture, transportation, power, steel and cement industry.  These lines of credit would provide an opportunity to Indian companies to share their technical and professional capabilities for development of Africa.  

Included in these LOCs are the lines of credit to the East Africa Development Bank and individual COMESA member countries like Angola, Djibouti, Ethiopia, Mauritius, Seychelles, Zambia and Zimbabwe which have served the purpose of building capacities and infrastructure within those countries.  At present India has nearly $700 million in lines of credit operating within COMESA countries either bilaterally or through regional institutions.  We would ideally like the LOCs to serve the purpose of infrastructure development in individual COMESA countries and also to look at similar projects across COMESA member states.  Similarly, we would also like the LOCS, where they are used for trade finance, to support investment in COMESA member countries. 

Capacity Building

            Along side the financial arrangements India also has a steady capacity building programme called the Indian Technical and Economic Cooperation (ITEC).  Under this nearly 2000 African applicants are received for a variety of courses in India for capacity building.  Under this Programme India has also assisted in establishing several projects for capacity building in African countries.  While most of these projects have covered Southern and Western Africa the COMESA region does not have a dedicated project under the ITEC Programme and we can certainly work on some ideas for establishing a project which would assist the countries of COMESA to build capacity in an area of their choice.  Some of these ideas were discussed during the visit of the COMESA Ministerial delegation to India in October and could be built upon very soon.  These include support to the Regional Investment Agency, the Leather Products Institute and to COMESA Reinsurance.  An Indian leather delegation is to visit Ethiopia and they would meet with the COMESA Leather Products Institute in Addis Ababa to discuss these ideas further. 

Pan-African e-Network Project

            Related to our capacity building efforts in COMESA is the implementation of the Pan-African e-Network Project.  Under this, India aims to bring the cutting edge of Indian technology to touch the lives of ordinary African brothers and sisters through the tele-education and tele-medicine programmes.  This Programme is being implemented by India as a pilot project in Ethiopia, a member of COMESA, and overall in association with the African Union.  So far five of COMESA’s 20 members have signed bilateral agreements with India (Burundi, Djibouti, Ethiopia, Mauritius and Seychelles) and more are on the anvil.  Under the Project, regional hubs for tele-medicine and tele-education would also be created so that besides the linkage with Indian universities and hospitals, intra-regional linkage and an ability to have your own tele-education and tele-medicine programmes would be facilitated.  The regional tele-education centre for Eastern Africa would be at Makerere University in Uganda within COMESA.  A decision on other facilities in Southern Africa and the tele-medicine facility for Eastern Africa will be decided as the project is implemented.  The entire hardware and software programme for this including courses and consultation under the two programmes for the first few years would be as a grant by the Government of India of nearly $100 million.  The hardware of this project would create a network which would be available for expanded use as part of e-trade and e-commerce and other e-applications beyond the tele-medicine and tele-education concepts.  We look forward to working closely with COMESA to integrate the implementation of this project in its member countries and catalyse the early usage of this visionary project whose genesis started with the vision of the President of India H.E. A.P.J. Abdul Kalam to bring the benefit of Indian science and technology to the friendly people of Africa. 

            Excellencies, Ladies & Gentlemen, when we look at COMESA we see a vast reservoir of talent and resources with which India can work closely.  The matrix of cooperation that we look at includes trade, investment, credits, execution of internationally funded projects and capacity building.  I will now dwell briefly on these aspects.

Trade Expansion

            India’s overall trade with the COMESA member countries is more than $3 billion.  This has almost doubled from 2003-2004 when it was $1.68 billion to $3.37 billion in 2005-2006.  Interestingly, during this period while Indian exports to COMESA region doubled from $1.13 billion to $2.37 billion, COMESA’s exports to India grew by 81% rising from $0.55billion to $1 billion. 

It is significant to note that out of the 20 member countries of COMESA, 4 are running trade surpluses with India.  It is my belief that we should look for a diversification and expansion of trade rather than address the question of trade imbalances when trade itself is so small.  We would like to work closely with COMESA and its member countries to enhance imports from India so that the large Indian market can be better served by sources in Africa as these need not only be primary products but can be processed products.  For instance, leather with value addition, pulses, edible oil, minerals and the like could be areas of focus.  India and COMESA have agreed to commence discussions towards the conclusion of a comprehensive Economic Partnership Agreement and to establish COMESA- India Joint Commission in different sectors that will review cooperation issues biannually at the ministerial level.  It has also been agreed that drafts will be exchanged for an early conclusion of an agreement to avoid double taxation and an agreement for investment promotion and protection. 

Investment Promotion

            Where investment is concerned, the liberalization of India and the opening up of foreign investment opportunities to Indian companies has seen a surge of investments.  The countries of COMESA are natural partners of India and Ethiopia, Kenya, Libya, Mauritius, Sudan, Seychelles, Uganda and Zambia are among prime destinations for Indian companies.  Indian investment in COMESA countries now value approximately $3.5 billion. We believe that this process can be enhanced through a consolidated investment promotion programme which COMESA could undertake in India.  To this end I was delighted that the COMESA Secretariat organized a ministerial visit from the COMESA countries to India last month and also attended the India-Africa Project Partnership Conclave.  Similarly, India had held two regional conclaves in Lusaka and Addis Ababa in April this year which focussed on the private sector of India wishing to engage with COMESA member countries for developing projects for future investment.  Indian investment can be attracted for threefold purposes: (i) for serving the domestic market, enhancing local capacity and productivity and for infrastructure development within member states of COMESA and in COMESA as a whole; (ii) Indian investment can be used for enhancing productivity and exports to third countries particularly in Europe and the USA where several COMESA countries have benefits under the Cotonou Agreement and AGOA; and (iii) Indian companies could be attracted to invest in sectors to enhance sustainable production and exportability as well as value addition for increased exports to India.  This is one area where more focussed attention is required.  As per the Joint Communiqué signed last month between India and COMESA, India is willing to assist the COMESA Regional Investment Agency in capacity building and has agreed to consider modalities for the Indian private sector to participate in the business activities of COMESA institutions such as the COMESA Reinsurance Company, the Leather and Leather Products Institute and the COMESA Metallurgical Industry Association.

Another area where Indian endeavour is seen in the COMESA region is in the association of our banking institutions.  Several Indian banks mainly Bank of Baroda, Bank of India and the State Bank of India are active in at least one-third of the member countries of COMESA.  In addition, we are closely working with the PTA Bank and the Exim Bank of India has indicated its willingness to consider becoming an equity participant in the PTA Bank.

Stock and Commodity Exchanges

            The growing use of IT in business and finance needs to be incorporated into the existing financial linkages between India and COMESA.  For instance, a greater integration of national stock exchanges within COMESA on the model of the multi floor trading of the National Stock Exchange of India could be considered.  Similarly, while work on a Pan-African Commodity Exchange is underway COMESA could take the lead for integrating plans for a commodity exchange within COMESA and link it to the Pan-African proposal.  The Indian experience in this could prove useful.

Involvement of Indian companies in internationally funded projects

            A large number of Indian companies can also provide cost effective services for internationally funded projects in COMESA countries.  Their talent and ability to deliver in time and at lower cost has been tapped by several COMESA countries already but could be tapped to a wider extent through a better dissemination of information and involvement of participant companies in the tendering procedures acceptable to host nations.  Indian lines of credit to support the achievement of national development goals and the millennium development goals are also available.  The PTA Bank has been a consistent partner of India and has benefited from six lines of credit in support of development of small industries.  Similarly, several COMESA member countries have had the benefit of Indian lines of credit for the development of industries and of infrastructure.  We need to focus on these lines of credit more clearly and while India would continue to standby the existing COMESA institutions and work with them closely it would also continue its policy of supporting lines of credits in individual member countries of COMESA.  But we need to think beyond this and see how a COMESA project of high value for several member countries could be evolved and brought to fruition with the help of Indian funding and Indian expertise.  I commend you, ladies and gentlemen, to think on these lines so that we can create a larger area of joint endeavour. 

            India participated in the second meeting of the Infrastructure Consortium for Africa earlier this year in Addis Ababa.  This was a signal on the part of India to show its willingness to be associated with African efforts to organize their own infrastructural development.  I remember at that meeting there were several projects discussed and if I am not wrong the Nile River Basin Project is one of those projects whose coverage is almost entirely within COMESA member countries.  This could be starting points for engaging with India in a new path as regional economic communities like COMESA exploit reports from riparian cooperation and create a matrix of genuine integration with shared benefits.  For all such project we would need to see whether the projects are financially viable, have a risk profile which can be broadly accepted and can be implemented in an appropriate environment.

            It is estimated that intra COMESA trade is hardly 10% of the trade of COMESA countries.  We need to look at more opportunities to enhance its trade and this can be facilitated by the creation of new economic corridors with appropriate infrastructure facilities.  The surge of investment from Dubai into the development of the port, the oil and container terminals and hotels and the like in Djibouti would need a larger hinterland to service.  At present most of Djibouti’s attention is on markets in Ethiopia but if that market was to expand to Southern Sudan, Northern Kenya and Somalia then Djibouti would have a much bigger role in the northern part of COMESA.  This would mean that there should be a better systems of roads and communications between these areas.  However, for road transport there would be a continuing dependence on imported petroleum supplies. We have countries in the region which are likely to be surplus in domestic power which could be better utilized for the creation of a railway system which would also support intra COMESA trading systems.  Such imaginative ideas need to be looked at so that infrastructure development cam compliment the need for bigger markets and the need to enhance intra COMESA trade.

Conclusion      

            The growing profile of India and COMESA together specially the transition from an essentially political relationship to a deeply functional relationship with strong economic content needs to be nurtured through a definitive action plan.  The recent visit of a COMESA Ministerial delegation is perhaps the turning point for giving a new impetus to the techno-economic aspects of the India-COMESA relationship.  Financing including the extension of further lines of credit, preferably project linked, and the growing role of Indian banks should be an important part of this feature.  Trade expansion and diversification, enhanced private sector investment, greater capacity building with a focus on areas of primary concern for COMESA and an integrative approach where Indian trade and investment as well as financing and capacity building could be used to support the further integration, manifest in COMESA’s desire to reach a common market in the next two years.

            Chairperson, Excellencies, Ladies & Gentlemen, as COMESA marches ahead India would stand by it as a partner in progress willing to share its experiences and its own development assistance to create a homogenous partnership which will taken into account our common ideals for democratic development and integration.  

* * * * *

Commemoration of the Centenary of the launch of Satyagraha and the

137^th birth anniversary of Mahatma Gandhi

2^nd October, 2006

ADDRESS BY H.E. MR. GURJIT SINGH,

AMBASSADOR OF INDIA TO ETHIOPIA, DJIBOUTI

AND REPRESENTATIVE OF INDIA TO THE AFRICAN UNION

            Today we gather here to remember a great human being Mohandas Karamchand Gandhi, known across the globe as Mahatma Gandhi.  As we mark his 137^th birth anniversary we also commemorate the launch of Satyagraha, the movement of peaceful resistance on 11^th September, 1906 in South Africa.  That movement set in motion a sequence of events unseen in human history that ultimately led to the political emancipation and representative democracy in South Africa and India. 

            I am happy to start today a process where we will not only remember the birth of Mahatma Gandhi every year but also delve into his ideals and ideas and see how they remain relevant to our lives today.  To this end we have instituted today the Annual Mahatma Gandhi Memorial Lecture and I am delighted that H.E. Ambassador Mohammed Dirir, Minister of Culture and Tourism of the Government of the Federal Democratic Republic of Ethiopia has kindly consented to give the first address.

            Mahatma Gandhi lived and died before I was born.  However, his ideals and political ideas have always been a beacon to me.  During my university days while we studied political thought and mulled over Socrates and Aristotle and Rousseau and Hobbes I succeeded in getting Gandhian thought a