Modi’s vision for India-SA partnership

Independent Media Foreign Editor Shannon Ebrahim interviewed Indian Prime Minister Narendra Modi on his visit to South Africa.

Independent Media Foreign Editor Shannon Ebrahim interviewed Indian Prime Minister Narendra Modi on his visit to South Africa.

Ebrahim: We know that India and South Africa have a long political and historical relationship. Why is South Africa important to India? What are the strengths of this relationship?

Modi: To start with, South Africa is across the Indian ocean in our extended neighbourhood. South Africa is one of the largest and the most diversified economies in Africa. Politically it plays a pivotal role to synergise the common African positions on issues of global concern. As an African country, South Africa has over the years shaped the African agenda and led the continent individually and collectively on the path of sustainable growth and development.

India and South Africa share excellent political, commercial and cultural relations. Our relations have been tested in adversity. India was among the first countries in the world to sever its ties with Apartheid South Africa. This solid foundation led our two countries to become Strategic Partners since 1997. Our bilateral trade has flourished and stands at US$ 9.5 billion in 2015-16. Two way investments have also grown multiple times to our mutual benefit. About 1.5 million people of Indian-origin live in South Africa. They form a bridge between our two countries, a bridge that facilitates many new journeys.

South Africa is a key partner for India in the development of South-South relations. There is active cooperation between India and South Africa in multilateral fora, particularly at NAM, the Commonwealth, G-77, G-20, IORA, BASIC and WTO. Both countries are part of the IBSA trilateral initiative and BRICS.

Ebrahim: What is the Government of India doing to encourage a greater presence of South African companies and products in India in order to improve the skewed trade balance which favors India?

Modi: India is open for business. We are taking steps on a regular basis to improve the ease of doing business in India. With our recent reforms, India can be seen as the most open economy in the world for FDI, including in food processing, pharmaceuticals, infrastructure, tourism, civil aviation and defence sectors. These new measures have created a wealth of opportunities for enterprising South African companies across many sectors. In an international business ecosystem, ease of movement plays a critical role. In February 2016, India extended E-Tourist visas to South Africa. A South African can get an Indian visa sitting at home. These and similar other measures by my government have made India an attractive market for South African entrepreneurs. I would encourage them to be part of the India growth story.

Ebrahim: What are your strategic objectives on this extensive African tour?

Modi: My visit to the African mainland reflects India’s desire to further strengthen and reinvigorate bilateral ties with our African partners which were renewed at the successful Third India- Africa Forum Summit that was held in New Delhi in October last year. The visit intends to foster relations with countries in critical areas like energy security, food security and maritime security. Some of the African countries are already our major partners for meeting India’s energy requirements. Food items like pulses are other important imports from many African countries. The four countries I am visiting also straddle important sea lanes of communication; they are gateways to a number of landlocked countries that are our partners. Maritime security thus becomes an important aspect of our cooperation. They are part of the IORA and the International Solar Alliance. We also have a sizeable diaspora in all these countries which is a constant reminder of our historical links. I am looking at building stronger people to people contacts and mutually beneficial partnerships.

We have suffered the pains of colonialism with Africa, and were partners in our common struggle for freedom and independence. Today Africa is growing, some call it Africa Rising. Despite the economic downturn and depressed commodity prices I sense a positive spirit in Africa. I sense the optimism and the energy of its youth. I also note that several African economies are growing at a good pace and are moving to robust democratic systems.

Ebrahim: India is part of the G4 group working to secure membership to a reformed UN Security Council. Can the text-based negotiations currently underway yield a result this time? Will India support South Africa's membership?

Modi: India and South Africa share the common objective of bringing about reforms in the institutions of global governance including the UN Security Council. The way it is structured does not represent current realities, and with over 2.5 billion people in India and Africa it is incumbent that we work together to make these institutions more representative and inclusive. We believe that text based negotiations is the way forward. We are confident that the day is not far when there will be recognition of the need to redress the imbalance in the UNSC.

We recognise that South Africa enjoys a preeminent position in the African continent. It has to bring the African nations together on this important question.

Ebrahim: India is campaigning hard to gain entry into the Nuclear Suppliers Group. South Africa had extended its support in the past, but it seems to be facing some opposition from other NSG members. Why is this membership so important for a country that has not signed a nuclear non-proliferation treaty?

Modi: India's membership of the NSG will provide the climate of predictability India needs to expand civil nuclear energy. It would help us meet the goal of 40% of our power capacity coming from non-fossil fuel sources by 2030 and help us move forward on the Paris agenda on climate change. Also, let's not forget that India has a homegrown, sophisticated nuclear program, and we are a growing supplier of nuclear items. It is of mutual interest for India to be subject to the NSG's discipline. As for the NPT, despite being a non-party, India's record on implementation of non-proliferation principles and provisions of the NPT is second to none, and our commitment to nuclear disarmament is strong and unequivocal. I see no contradiction between the NPT and the NSG, and in fact this was explicitly recognised in the September 2008 consensus NSG decision on India.

Ebrahim: BRICS represents a new global architecture of co-operation, but has come under pressure in recent months due to the crisis in Brazil and the crash in commodity prices that has derailed some of its members. What are India's plans to strengthen this important alliance?

Modi: BRICS has its fundamental strengths. Due to global forces, some members may come under temporary pressures; the inherent strength and agenda of BRICS stands intact. Notwithstanding the ups and downs, BRICS has been able to deliver on many fronts, including the New Development Bank (NDB). Engagements between the BRICS countries have grown from strength to strength and are comprehensive.

As BRICS Chair in 2016, our core-theme for the BRICS Chairmanship is - Building Responsive, Inclusive and Collective Solutions (BRICS). We will adopt a five-pronged approach during our Chairmanship. It will be comprised of Institution Building, Implementation, Integration, Innovation, and Continuity with Consolidation. Our emphasis will be on institution building, implementation of previous commitments flowing from the past Summits, and exploring synergies among the existing mechanisms. Enhancing greater people-to-people participation in BRICS events is also our priority. Keeping this in mind, we have planned a series of events including – the BRICS Under-17 Football Tournament, BRICS Film Festival, BRICS Wellness Forum, BRICS Youth Forum, Young Diplomat’s Forum, BRICS Trade Fair, BRICS Friendship Cities Conclave, besides the Think-Tank and Academic Forums. India will continue to work closely with our BRICS partners in taking the BRICS agenda forward.

Ebrahim: There is a view that India is competing with China in Africa? What is your response?

Modi: I believe that there is enough space in the world for both China and India to grow together. We are not in the business of competing with anyone. Our agenda is developmental based on cooperation. Each relationship stands on its own merits and follows its unique trajectory. We have historical relations with Africa. India believes in shared mutual growth with our African brothers and sisters. Our commitment to mutual development was re-iterated during the Third India-Africa Forum Summit held in New Delhi in October last year. We offered assistance in the form of skills development, scholarships, institutional linkages, lines of credit and grants. Given the importance of our relationships with all African countries, this time we set aside the limited Banjul Formula for participation in IAFS, and invited all African leaders to participate. This was deeply appreciated and Africa responded well. We will continue to build on our solid foundation in a range of areas identified for future cooperation.

Ebrahim: How has India managed to achieve such a high growth rate making it the most favored destination for FDI globally, and the fastest growing emerging economy?

Modi: In an environment where global economic growth has at best been modest, India today stands as a bright spot. The IMF has projected India’s growth at 7.5%, for fiscal 2016-17. My government’s focus on administrative reforms, simplification of approval processes, including online project approvals has improved business sentiment and the ease of doing business in India.

We have been radically liberalizing the country’s FDI regime over the last two years and have opened up most sectors including defence and railways. The defence sector offers promising opportunities to South African defence manufacturers.

We have passed the Bankruptcy Law to ensure time-bound settlement of insolvency issues, passed the Real Estate Bill to protect home buyers and ensure greater transparency, and approved the National Intellectual Property Rights Policy which stimulates creativity and innovation across sectors

We have also launched a number of flagship programs such as Make-in-India, to boost best-in-class manufacturing; Digital India to boost e-governance, encourage electronics production and connect the whole of India through a national broadband network; the 100 Smart Cities program, an integrated urban planning effort with a focus on smart infrastructure, transport, design and architecture; Start-Up India to unleash the spirit of entrepreneurship and stimulate innovation; and Stand-Up India to provide credit to the unbanked.

As a result of the above measures, India was able to attract US$ 55.45 billion in foreign direct investment in financial year 2015-16, a growth of 23%.

Ebrahim: India has led the way on renewable energy, what lessons can India share with South Africa in the area of climate smart policies?

Modi: In a significant transformation, India has achieved power surplus from chronic power shortage. Record capacity addition of around one-fifth of the current conventional power capacity (211 GW) and solar power capacity addition of 157% in the last two years led to a boost in power generation. There is now a clear roadmap for delivering 24/7 affordable power to every household, and adequate power to farmers, in an environment friendly manner.

India is headed for the top slot in the global LED market through the UJALA scheme, which is also the first zero-subsidy LED lighting program in the world. The scheme will replace 770 million incandescent bulbs with energy efficient LED bulbs by 2019. Over 127 million LED bulbs have been distributed to date. India is running the world’s largest renewable energy expansion programme with a target to increase overall renewable capacity by more than five times from 32,000 MW in 2014 to 175 GW in 2022.

India has also taken the lead in launching the International Solar Alliance, which covers 121 countries, including 49 African countries that fall within the Tropics of Cancer and Capricorn. The ISA will help many developing countries, from Africa to South America, to take advantage of developments in renewable energy around the world as well as gain access to affordable financing for deploying solar energy.

Foreign Bureau