Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology(NIFT), Daman Campus.
Dr Pravin P Chavan, Assistant Professor, National Institute of Fashion Technology(NIFT), Kannur Campus.
India’s trade strategy is undergoing a fundamental shift from single-market dependence to multi-aligned growth. This article is based on the two top business headlines in the business circle. India–Africa trade hit $100 bn in 2024, up 14.9% and YoY6,000 EU firms invested €218 bn in India over the last decade, supporting 6 million jobs
Bilateral trade between India and Africa reached 100 billion dollars in 2024, registering a growth of 14.9 percent over the previous year, with India’s exports to Africa at 42.1 billion dollars and imports at 52.1 billion dollars. Commerce Minister Piyush Goyal described this partnership as one that can shape a more inclusive, resilient and innovation-driven future for the Global South, emphasizing a move beyond traditional trade into higher value products, integrated supply chains, and technology cooperation.
The focus areas now include agriculture and food processing, digital technology, healthcare and pharmaceuticals, renewable energy, critical minerals, and manufacturing, with nearly 70 percent of the population of India and Africa below the age of 35.
This demographic dividend is being channeled into innovation ecosystems and talent development, supported by the African Continental Free Trade Area which opens a 3.4 trillion dollar market. More than 200 Indian firms have already invested over 80 billion dollars in Africa, signaling a long-term commitment to co-creating value chains rather than just exchanging goods.Simultaneously, India’s integration with Western economies is deepening through investment-led partnerships.
The European Union’s Economic Footprint report shows that around 6,000 EU firms are currently active in India, generating 16 billion euros in turnover in 2024 and contributing close to a quarter of the country’s manufacturing output. These businesses support nearly six million jobs, including 3.7 million direct jobs and over two million across supply chains and related services.
In 2024 alone, EU companies generated 23.5 billion euros in exports, accounting for around 6 percent of India’s total exports, while contributing nearly 7 billion euros in taxes and spending 271 million euros on corporate social responsibility initiatives. EU Ambassador Hervé Delphin noted that the presence of EU businesses extends far beyond statistics to drive innovation and collaboration, with investment protection and FTA discussions underway to further strengthen resilient value chains in sectors like manufacturing, digital technologies, and services.
The study is timely given the resumption of EU-India Free Trade Agreement negotiations and adoption of the EU-India Joint Strategic Agenda, which represents more than a trade deal and signals a drive to deepen economic integration.For India’s textile sector, these twin engines create a unique opportunity. The Africa corridor demands affordable, sustainable textiles and allows textile hubs to export “Waste to Wealth” models by converting fabric deadstock and agri-waste into value-added products for African MSMEs.
India’s diversification strategy is therefore not just about geography but about moving from cut-make-trim to code-track-claim, where waste becomes raw material and data becomes trade leverage. The next phase of India’s global engagement will be defined by co-owned, circular, and innovation-led value chains that serve both the Global South and Global North on India’s terms.
