Modi’s New Foreign Policy Agenda and the Implications for Africa

The document analyzes the shift in Indian foreign policy under Prime Minister Narendra Modi, moving toward a more proactive and assertive 'geo-economic' approach. It examines how this strategy integrates Africa into India's broader geostrategic space, stretching from the Suez to the Pacific, and evaluates the outcomes of the third India–Africa Forum Summit (IAFS III). The authors argue that while India seeks to enhance its soft power and energy security, the relationship must evolve from a focus on Indian-sourced credit lines to partnerships that support African industrialization and manufacturing.

• Prime Minister Modi's foreign policy is characterized by a more assertive and proactive approach, defining India's strategic space as extending from the Suez to the Pacific. Africa is used as a means to carve out a stronger role for India in this space, monitor Chinese and other external actors in the Indian Ocean, and build support for India's global ambitions.
• India's engagement with Africa has shifted from a restricted participation model based on the 'Banjul Formula' to a more inclusive approach, as evidenced by the third India–Africa Forum Summit (IAFS III) in October 2015, which invited all African states.
• Economic ties have grown significantly, with two-way trade between India and Africa increasing from $5.3 billion in 2001 to approximately $70 billion by 2014/15. Indian foreign direct investment (FDI) in Africa reached between $30 billion and $35 billion by 2014/15, though a large portion is routed through Mauritius.
• Lines of Credit (LOCs) from the Exim Bank of India are a primary funding tool, with African countries receiving 59% of the bank's lending. However, these are criticized by some African officials because they typically require 75% of goods and services to be sourced from India, limiting local fiscal impact.
• India's strategic interests in Africa include enhancing soft power through UN peacekeeping (with approximately 4,500 soldiers in Africa), combating radicalism and terrorism, and securing energy resources to diversify away from Middle Eastern oil.
• The IAFS III resulted in new financial commitments, including $10 billion in concessional credit lines over five years, $600 million in grant assistance (including a $100 million India–Africa Development Fund and a $10 million Health Fund), and 50,000 scholarships.
• India seeks to align its partnership with African continental strategies, specifically Agenda 2063 (industrialization and job creation), the Africa Integrated Maritime Strategy (AIMS), and the Programme on Infrastructure Development for Africa (PIDA).
• There is a perceived gap in the implementation of capacity-building institutions proposed during previous summits; only a few, such as the Kofi Annan Centre for Excellence in ICT and the India–Africa Institute for Trade in Kampala, are operational due to administrative and procedural delays.

APA

Sidiropoulos, E., & Alden, C. (2016). Modi’s New Foreign Policy Agenda and the Implications for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2016/02/Occasional-Paper-226.pdf

Chicago

Sidiropoulos, Elizabeth, and Chris Alden. Modi’s New Foreign Policy Agenda and the Implications for Africa. South African Institute of International Affairs, 2016. https://saiia.org.za/wp-content/uploads/2016/02/Occasional-Paper-226.pdf.

Wikipedia

{{cite report |last1=Sidiropoulos |first1=Elizabeth |last2=Alden |first2=Chris |title=Modi’s New Foreign Policy Agenda and the Implications for Africa |publisher=South African Institute of International Affairs |date=January 2016 |url=https://saiia.org.za/wp-content/uploads/2016/02/Occasional-Paper-226.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sidiropoulos2016modis, author = {Sidiropoulos, Elizabeth and Alden, Chris}, title = {{Modi’s New Foreign Policy Agenda and the Implications for Africa}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jan, url = {https://saiia.org.za/wp-content/uploads/2016/02/Occasional-Paper-226.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }