As India Expands its Influence in Africa, Algeria Emerges as a Crucial Gateway for Strategic Economic Collaboration

BY: Dr. Hana Saada

Algiers, Algeria | October 15th, 2024 — In a historic state visit that marks the dawn of a new era in bilateral relations, India’s President has embarked on a four-day visit to Algeria, sparking renewed optimism about the prospects of a strategic partnership that could reshape economic cooperation between the two nations. This visit, hailed as a significant diplomatic milestone, is expected to open up fresh avenues for collaboration in critical sectors such as energy, pharmaceuticals, automotive, technology, agriculture, and emerging industries like digitization and start-ups.

Experts argue that with India’s growing interest in extending its footprint across Africa, Algeria, with its strategic geographical location and wealth of natural and human resources, is poised to become a gateway for Indian investments into both European and African markets.

Omar Haroune: A Pivotal Moment in Algeria-India Relations

Economist Omar Haroune, speaking to Echorouk, emphasized that Algeria’s recent resurgence on the international stage, demonstrated by its active stance in the United Nations Security Council throughout 2024, has reaffirmed the country’s historical prominence and re-established its standing as a key geopolitical player. Algeria’s growing role as a reliable energy partner for Europe, coupled with its vast natural resources and strategic positioning, has made it an attractive prospect for nations like India that are seeking to bolster their presence in Africa and beyond.

“The international community has taken note of Algeria’s strategic value, especially as more countries look to strengthen their ties with Africa,” Haroune noted. “India’s President’s visit comes at a time when Algeria is consolidating its global partnerships, particularly outside major economic blocs, in line with President Abdelmadjid Tebboune’s strategic vision.”

Haroune observed that Algeria’s decision to pursue bilateral relations with key global players, bypassing larger economic entities such as BRICS, demonstrates a calculated approach. This strategy is similar to Algeria’s recent strong bilateral engagements with European nations like Italy, which have yielded significant mutual benefits.

“The global shifts we are witnessing today necessitate stronger ties between influential nations, and India is keen to rebuild its relationship with Algeria, a country that commands respect both regionally and internationally,” Haroune added. “The visit by India’s President is a clear signal that India is eager to reset its relationship with Algeria and capitalize on the vast opportunities it presents, particularly in sectors like energy and advanced technologies.”

The Historical Context and Economic Potential

Haroune reminded us of the long-standing ties between Algeria and India, dating back to their shared commitment to the Non-Aligned Movement and the fight against colonialism. Today, the two nations find themselves aligned once again, this time in their pursuit of a fairer global economic system that allows developing nations to harness their own resources for the benefit of their people.

“India and Algeria share a unique history of solidarity and mutual support. What we are seeing now is the evolution of that partnership into a new economic reality where both nations can play to their strengths,” Haroune concluded.

He predicted that numerous agreements will be signed during this visit, laying the foundation for deeper cooperation in sectors ranging from science and technology to energy and agriculture. “It is highly likely that this visit will result in key sectoral agreements that could mark the beginning of a robust new chapter in Algeria-India relations,” Haroune stated.

Fares Hebbache: Economic Collaboration Amid Global Shifts

Echoing these sentiments, economic expert Fares Hebbache highlighted that while there may have been some differences in political perspective between Algeria and India in recent years, these have not hindered economic cooperation.

“The message from Indian Prime Minister Narendra Modi to President Abdelmadjid Tebboune following his re-election was a clear indication that India is eager to open a new chapter in bilateral relations,” Hebbache explained. “This visit represents an important step toward deepening economic collaboration, particularly as the global economic landscape shifts.”

Hebbache underscored the significance of Algeria as India’s first stop on a broader tour of African nations. “The fact that India chose Algeria as the initial destination for this diplomatic outreach is no coincidence. Algeria’s strategic location, coupled with its vast natural and human resources, positions it as an essential partner for India’s ambitions in both Africa and Europe,” he said.

He also stressed that the four-day duration of the visit provides ample time for the two nations to explore various areas of potential collaboration and to hold extensive meetings between high-level delegations. This, he noted, would lead to the establishment of a strategic framework for cooperation, one that could see India integrating its industries into Algerian markets.

Strategic Opportunities for Mutual Growth

According to Hebbache, the sectors that offer the most promise for collaboration include energy, where Algeria’s vast reserves of oil and natural gas could complement India’s burgeoning energy needs. Additionally, the agricultural sector presents significant potential, as Algeria seeks to bolster its strategic crops. “India, as the world’s second-largest producer of wheat, is well-positioned to assist Algeria in its efforts to enhance agricultural productivity,” Hebbache said.

He also highlighted the pharmaceutical industry as a prime area for collaboration. India is a global leader in pharmaceutical manufacturing, exporting to more than 200 countries. A partnership between Algeria and India in this field could see Algeria benefiting from India’s expertise in producing affordable, high-quality medicines.

Moreover, Hebbache pointed to the potential for technological cooperation, particularly in the areas of digital infrastructure and start-ups. India’s experience in building a thriving digital ecosystem, best exemplified by the tech hub of Bangalore, could provide invaluable insights for Algeria’s burgeoning start-up scene. India is currently the third-largest start-up ecosystem in the world, home to over 100 “unicorn” companies valued at over $1 billion each.

A Model for Economic Reform and Industrial Growth

Hebbache also drew attention to the parallels between Algeria’s current economic reform initiatives and India’s own experiences in the late 20th century. “India’s transformation into a global industrial powerhouse offers valuable lessons for Algeria. In the 1970s, India struggled to attract investment, but thanks to a series of economic reforms, it is now the fifth-largest industrial nation in the world, with manufacturing contributing nearly 30% to its GDP,” Hebbache explained.

This expertise could be instrumental as Algeria continues to diversify its economy away from hydrocarbons and towards manufacturing and technology-driven sectors.

Conclusion

A New Chapter in Algeria-India Relations As the world navigates a period of profound economic transformation, the visit of India’s President to Algeria marks a pivotal moment in the relationship between the two countries. With both nations keen to strengthen their economic ties and capitalize on the vast opportunities in energy, agriculture, technology, and beyond, this visit is likely to result in the signing of numerous agreements that will lay the groundwork for a robust and enduring partnership. As Hebbache noted, “This visit is more than just symbolic – it is the beginning of a new chapter in Algeria-India relations, one that will be defined by mutual benefit, strategic cooperation, and shared growth.”

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