India- Zambia Relations | UPSC Current Affairs

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Context: A Parliamentary Delegation from Zambia led by H.E. Ms Nelly Butete Kashumba Mutti called on President of India, Smt Droupadi Murmu at Rashtrapati Bhavan.

Details:

Welcoming the delegation to Rashtrapati Bhavan, the President said that India and Zambia enjoy strong and cordial relations.
The leaders of the Zambian freedom struggle, like the founding father and first President of Zambia, Dr Kenneth Kaunda drew inspiration from the Indian freedom struggle, particularly Mahatma Gandhi.
The President said that in the area of economic cooperation, our bilateral trade has been growing steadily. India is one of the leading investors in Zambia.

Background of relations:

Political:

The leaders of Zambian freedom struggle drew inspiration from the leaders of India’s freedom struggle, particularly Mahatma Gandhi.
Over these last several decades, India has come to be seen as a reliable partner and friend and is described by Zambian leaders as an “all weather and time-tested friend”.
The relationship continues to be driven by mutual respect and is based in a spirit of partnership for mutual benefit.

Bilateral Visits:

High level visits have been a feature of our historical bilateral relationship.
Kenneth Kaunda, the first Republican President of Zambia, visited India more than ten times including as a freedom fighter in 1957 and a state visit in 1967.
President Edgar Lungu undertook a state visit to India in 2019, when he had discussions with Hon’ble President of India and Prime Minister as well as held delegation level talks.
Ram Nath Kovind, then President of India paid a State visit to Zambia at the invitation of Zambian President in 2018.

Development Cooperation:

Over the years, India has provided extensive economic assistance to Zambia in the form of Government and EXIM Bank credits; railway wagons and flood relief grants and lines of credit besides fully paid scholarships for various higher education courses and ITEC training slots as well as specialized capacity building programmes under IAFS.
Construction of a 650 pre-fabricated rural health posts project under an Exim Bank LoC of US$68mn is currently underway in Zambia.
Lusaka Roads Decongestion Project, under Exim Bank’s buyer’s credit of US$ 245mn is currently being be executed by Afcons Infrastructure Limited of India.
Government of India has included Zambia in the second phase of its ongoing Cotton Technical Assistance Programme [CTAP].

Bilateral Trade:

Bilateral trade has been growing steadily but remains below potential due primarily to Zambia’s landlocked location, logistical difficulties and consequent costs of undertaking cross border trade.
In recent years, there has been a renewed interest in India for trade and investment with Zambia but again logistics and the small size of the Zambian economy remain the main hurdles and limiting factors.
In 2018-19, two way trade stood at US$ 829 million [Imports: $319 and, exports: $ 510].
India’s export items include drugs and pharmaceuticals, machinery and instruments, transportation equipment, cotton yarn and fabrics, plastic, rubber, chemicals, and electronic goods.
India’s imports from Zambia include non-ferrous metals, ores (copper and cobalt), semiprecious stones and raw cotton.

India’s investments:

Zambia, with its rich natural resources, has become an important destination for Indian investments particularly in the mining sector.
With investment of over US$5bn, India is one of the leading investors in Zambia.
India’s Investments in Zambia include Indo-Zambia Bank which was established in 1984, as a joint venture between GoZ and three Indian public sector banks i.e. Bank of India, Bank of Baroda and Central Bank of India.

Indian Community/PIOs:

Zambia has a large and vibrant Indian community many of them had settled down in Zambia decades ago.
There are about 30,000 Indians/PIOs in Zambia and some have taken up Zambian nationality and/or British nationality.
Majority of Indians/PIOs are from Gujarat State.
Zambians of Indian origin play a significant role in Zambia’s economy, especially in trade, industry, hospitality and transport sectors.