Can India do a China in the continent of unlimited resources? China’s big foray into the African continent has grabbed global attention. But there are many – such as Harvard professor Tarun Khanna – who believes that India has an edge in Africa because of its deep diaspora. “The fact that the Indian diaspora is deeply entrenched and spread across Africa and knows its way around is a big advantage,” feels Dr Khanna, Jorge Paulo Lemann professor at the Harvard Business School, who has specialised in research on India and China.
Ask Nimisha Madhvani, the Ugandan high commissioner to India, who belongs to a family that owns and runs one of the biggest business conglomerates in East Africa. “The Indian government has not really focused on the Indians in Africa which is why many of the big Indian business groups of Indian origin in that continent do not look at putting their money in India but instead tap business opportunities in Europe and America. However, if certain restrictions were eased and some steps taken by the government, India could attract a lot of investment from this segment,” she says. She also feels that in view of the historic ties between India and many of the African countries and the bridges that have been built by the diaspora over the years, India doesn’t really need to feel competitive about China’s plans in the neighbourhood.
Indian Diaspora in Africa, Finding friends for the Safari
India and China are competing yet again, in Africa. However, the advantage that India has over China is the centuries-old Indian Diaspora spread across the continent. Will this historical link serve India’s economic interests in this region?