India for duty free imports from Africa

It is unofficially announced that India would be allowing duty free imports from Africa. The current benefits of this decision are being questioned considering that the total imports from Africa constitute less than 7% of India's imports. The imports themselves are of commodities such as mineral oils which are currently taxed at around 2%. This is seen as a diplomatic move to help the Indian oil companies' interest to acquire equity stakes in oil blocks in Africa. Concern is expressed that India needs to help the African education and manufacturing industry by sharing knowledge and imparting skill sets to the African nations.

The downsides expressed in this article seem to neglect the fact that though the current imports are low, it might boost up in future. This move at this point in time would help in keeping the economic impacts low in future as this is already been factored in from a very early stage. It would also provide India a leverage to reach into the potential filled African continent, which is being looked at by many businesses as the place to expand operations in. I feel this is a good move and not just eyewash since for a nation of our size, writing off import taxes, even a small amount, would mean a significant burden on the nation's income sources. India being also able to leverage this policy to benefit its companies does not qualify a duty free trade treaty as a symbolic move. It is a positive move from the government and it must be welcomed. A greater hurdle might be in Indians' acceptance of a greater number of Africans' presence. After all we are a nation which is a market place for "fair and lovely" and "fair and handsome".