Intreview: Shri Salman Khurshid
What kind of factors underlie the significant levels of bilateral trade between India and Nigeria?
SHRI SALMAN KHURSHID: India’s emergence as Nigeria’s largest trading partner and export destination has been in the making for many decades. The drivers behind this bilateral synergy have been our mutual familiarity, economic complementarity and the compatibility of Indian products and services with Nigerian requirements. As these factors are unlikely to change, I believe that current levels of trade are sustainable, and moreover that our ties have the potential to grow deeper still.
This surge in bilateral trade has taken place largely without formal institutional arrangements. However, we are in the process of negotiating the Bilateral Investment Promotion and Protection Agreement (BIPPA), as well as the Double Taxation Avoidance Agreement (DTAA). These structures could lead to a Comprehensive Economic Cooperation Agreement, and can only further strengthen our relations. India is the world’s largest importer of Nigerian crude oil, and we would therefore also like to arrange further bilateral contracts between our state oil companies.
Which areas of Nigeria’s economy hold the most potential for Indian investment in the medium term?
KHURSHID: We estimate that over 100 Indian companies and groups currently have a presence in Nigeria, with many more planning to enter the market in the near future. This trend can be strengthened by formal investment promotion measures such as BIPPA and DTAA, as well as the creation of a level playing field in various sectors. Agriculture is one such sector, with vast potential for trade between India and Nigeria. India’s Green Revolution successfully transformed our domestic agriculture, and the country is now a top rice exporter, with a global distribution network.
Although Nigeria’s agricultural transformation agenda bans the import of finished food products, India understands and supports Nigeria’s quest for greater self-reliance in agricultural production. In that vein, we have opted to contribute to Nigeria’s agenda by assisting it with inputs and training. As agricultural products constitute an important segment of our trade, India would like to see these protected, by pursuing a trade policy framework based on transparent rules that are compatible with the regulations of the WTO.
To what extent can Nigeria learn from India’s past experience in socio-economic development?
KHURSHID: Given our shared values and common interests, there is plenty of potential for India and Nigeria to exchange ideas on social and economic matters, without the need to be prescriptive on either side. For example, India has enjoyed great success in poverty alleviation, and the government has initiated various programmes to ensure that the benefits of economic growth reach marginalised sections of society. These include policies such as direct cash transfers, the Mahatma Gandhi National Rural Employment Guarantee Scheme and the Food Security Bill. The outcome of these policies is being observed with interest by a number of our allies, including in Africa.
Turning to economic policy, the emergence of a knowledge-based economy over the past two decades has redefined India’s image. India has managed to leverage assets such as a large, young and educated population with knowledge of English, as well as low labour costs, to take advantage of opportunities in the globalised world. India has also constructed a transparent, rule-based policy framework by ensuring close interaction between government and industry.
We believe that these traits are not unique to India and in fact exist in many other countries, including Nigeria. As a result, we believe that the country would benefit from adapting the Indian development model to its own specific needs. This would in particular help stimulate and nurture the continued development of Nigeria’s nascent IT industry, which is beginning to approach take-off levels as stakeholders effectively leverage the skills and expertise of Nigeria’s diaspora.
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