India and Africa were linked in a close bond weaving in silk
thread by GANDHI JI long time ago, and since then both countries are in a close
relation and by all measures we should do work on strengthen this bond. We need
to stand up & shine as economic might in the world, to prove to the world
that India & Africa are the new engines of global growth.
India & Africa both have utilized & underutilized
resources which can give them both wonderful
future. With India’s skill & Africa’s resources we can build a
strong business empire between the two, & this can happen by exploring
cross border expansion in trade & infrastructure as well as improved
domestic productivity. India has got the skill & technology & Africa
has vast landmass & resources which is waiting to be utilized. We need to understand economic, potential
framework of the two. We need to identify the major job drivers & help us
curb triple challenge of poverty, unemployment & inequality & achieve needed
growth.
STEPS WE CAN TAKE TO ESTABLISH FIRM BUSINESS RELATIONS
1.
IDENTIFYING MAJOR SECTORS:
Agriculture (including floriculture & horticulture),
textile, IT, hospitality etc.
India can set up educational institutes or
start student exchange programmes to impart the required knowledge & skill
necessary.
2.
BUSINESS ASSOCIATION
We need to establish an independent cross
border business association between the two countries which would be the sole
controller of all issues concerning business between the two countries. Its
works may include:
1.
Emigration acts & rules
2.
Taxation structure:
It will include taxes like income tax, corporation tax, VAT, custom duty
etc.
3.
Export/import structure
4.
Finances:
To look upon major sources from where capital/funds can be arranged.
5.
Labour flow
6.
FDI:
India should look upon arranging maximum investment in Africa by our
companies.
7.
Licenses & other required documents to set up
venture.
8.
To stop interference of other countries.
Team panel shall consist of prime ministers & heads of leading
business CEO’S of both countries. Setting up of such an association is
necessary to cut the red tape.
BUSINESS VENTURES can be set up in following ways:
1.
Joint
ventures:
Government of India & Africa can merge their resources & start
establishing major firms that deal with basic necessities such as hospitality,
agriculture etc.
2.
Contract based:
Government of India can give contracts to individual firms to identify
the locations & then set up & control the whole business structure.
3.
Partnership:
Government can partner with business companies & set up firms. Partnering
with leading business companies will help as they he the required tactics to
start up business venture & govt can help in legal matters.
4.
Sole owned:
Atul haku shah is the leading business tycoon of Africa 7 having origin
of India. He has set up an example that Africa has unbound potential which just
needs to be tapped. So we can encourage others also to go to Africa & start
working.
5.
Limited company
CHALLENGES:-
It’s not easy to start up business firms. There are many risks which need
to be look upon.
Africa & India differ a lot in
culture so there are bound to come some obvious obstacles such as language etc.
We need to expand the firms once they start doing well in places where
they are set up. For the business to go well we need to chalk out potential
places in Africa where there are resources & there will not b much
difficulty in setting up it.
We need to tap the resources in well planned manner and exploitation
shall be done in proper manner.
India can take improved technology
of India to Africa. This makes Africa to have improvised technology transfer
from India. Africa can imbibe this technology and can improvise without
starting from the scratch
In
all we can say that India & Africa can stand up together & lead to substantial growth. We just need to
acknowledge the huge potential.
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