 "‘Unlike extractive models…’: Jaishankar takes a dig at China ‘debt trap’ policy at Japan-India-Africa forum")
External Affairs Minister S Jaishankar on Wednesday hit out at China’s ‘debt trap’ policy, saying India believes in “capacity-building” and “skill development” when it invests in other countries.
Talking at the Japan-India-Africa Business Forum, Jaishankar said, “India’s approach to Africa has always been guided by a deep-rooted commitment to building long-term, mutually beneficial partnerships.”
“Unlike extractive models of engagement, India believes in capacity-building, skill development and technology transfer, ensuring that African countries not only benefit from investments but also develop self-sustaining growth ecosystems,” he added.
A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China, according to a 2023 report by the Associated Press.
Behind the scenes is China’s reluctance to forgive debt and its extreme secrecy about how much money it has loaned and on what terms, which has kept other major lenders from stepping in to help.
Highlighting India’s contribution to Africa’s growth trajectory, the Indian Foreign Minister said, “India has also made significant commitment to Africa’s connectivity and infrastructure development, with more than USD 12 billion in concessional credit and over 200 completed projects spread across the continent in areas such as railways, power generation, agriculture, and water supply.”
Jaishankar said India’s development projects sectors such as power plants, transmission lines, cement, sugar and textile factories, technology parks and railway infrastructure generated local employment and changed lives in Africa.
Impact Shorts
More ShortsIndia’s deep and longstanding engagement with Africa can make it a natural bridge, whether geographically or in the industrial value chain, he argued.
“With India set for continued rapid economic growth, it serves as an ideal hub for Japanese companies seeking to expand into Africa and the Middle East,” he said.
“Japanese investments, India’s solid industrial base and digital capacities and Africa’s talent and consumption can come together to create beneficial outcomes for all stakeholders,” he added.
With inputs from agencies
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