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India-Kenya Economic and Commercial
Relations
Trade and Economy
Trade links between the two countries
strengthened after India attained its independence in
1947 and Kenya in 1963. Thereafter, the trade between
the two countries has grown steadily but is yet to reach
its full potential. A significant increase in the volume
of trade was experienced in 1980s following the signing
of Indo-Kenya Trade Agreement in March 1981. Through
the Agreement, India and Kenya accord to each other
the most favoured nation status. Following the introduction
of economic liberalisation in both countries in early
1990s, the trade volume experienced a further growth.
The Fourth Meeting of
the India-Kenya Joint Trade Committee meeting was held
on 29 November 2001 in Nairobi. Hon'ble Rajiv Pratap
Rudy, then Minister of State for Commerce & Industry
led the Indian Delegation while Hon'ble Abdi Mohamud,
then Assistant Minister for Trade & Industry, led
the Kenyan Delegation.
India-Kenya Trade at a Glance
Rs. Million (US$ Million)
|
|
2000-2001
|
2001-2002
|
2002-2003
|
|
India Exports
|
6,362
(138)
|
7,383
(152)
|
9,856
(214)
|
|
% Growth over previous
year
|
22
|
16
|
40
|
|
India's Imports
|
855
(19)
|
1,521
(32)
|
1,618
(35)
|
|
% Growth over previous
year
|
- 4.6
|
77
|
6
|
|
Total Trade
|
7,217
(157)
|
8,904
(184)
|
11,474
(249)
|
|
% Growth over previous
year
|
18
|
23
|
29
|
Commodity break-up of trade is provided in the Annex
India's principal exports in 2002-2003: machinery &
instruments (12%); drugs and pharmaceuticals (15%); cotton
yarn, fabrics and made-ups (13%); transport equipment
(6%); manufacture of metals (9%).
Principal imports
in 2002-2003: inorganic chemicals (30%); dyeing
and tanning materials 13% in 2000-2001 increased to
28% in 2002-2003; pearls, precious and semi-precious
stones (12%); and leather and raw hides & skins
etc. (19%).
Strong trade ties have
provided the basis for technology transfers between
India and Kenya. Today many Indian joint venture companies
are successfully operating in Kenya and India has also
extended to Kenya consultancy services through technical
assistance. These projects have helped Kenya to diversify
its industrial production and set-up a base for development
of local technology capabilities. On its part. India
has earned considerable goodwill and indeed financial
benefits from these joint ventures. In fact, lately,
almost all major tractor producers from India like Bajaj,
HMT and Punjab Tractors have been making visits to Kenya
for exploring markets in agricultural implements. There
have been also regular visits from various Export Promotion
Council to Kenya during the last one year for market
study / holding Buyer Seller Meets. The Synthetic &
Rayon Export Promotion council (SRTEPC) of India also
mounted a two-day Buyer Seller Meet in one of the leading
hotels in Nairobi in February 2003. The EEPC of India
had a successful Buyer-Seller Meeting from January 22-23,
2004 in Nairobi where they had transacted prospective
orders to the tune of US $ 2 million.
India-Kenya partnership
in technology transfer for small and medium industries
has been very strong in the areas of technical assistance
involving the exchange of experts and know-how. National
Small Industries Corporation (NSIC) helped Kenyan Industrial
Estate Limited and Appropriate technology Advisory Committee
to develop and promote small and medium industries in
Kenya. Indian government provided assistance by way
of supply of machinery and equipment and started industries
under the Kenya Industrial Estate Limited programme.
Apart from the efforts of National Small Industries
Corporation (NSIC) experts to help Kenya, many private
consultants from India also rendered consultancy services
to Kenyan Small and Medium Enterprises (SMEs). The EEPC,
in association with the High Commission, organized a
4-day Indian technology exhibition in September 1998.
In June - July 2003, a technical team from RITES of
India undertook a six-week consultancy job for the Kenya
Railways under ITEC programme.
Annex
India-Kenya Bilateral Trade Commodities
|
Main Exports
of India
|
2000-2001
|
2001-2002
|
2002-2003
|
|
$ million
|
%
Share
|
$ million
|
% Share
|
$ million
|
% Share
|
|
Total
|
138
|
|
152
|
|
214
|
|
|
Textiles
|
18
|
13
|
26
|
17
|
29
|
13
|
|
Drugs, Chemicals, Pharmaceuticals.
|
17
|
13
|
29
|
19
|
31
|
15
|
|
Manufactures of Metals.
|
13
|
9
|
17
|
11
|
21
|
9
|
|
Transport Equipment
|
12
|
8
|
10
|
7
|
13
|
6
|
|
Primary, Semi-finished products.
|
10
|
7
|
24
|
16
|
26
|
11
|
|
Inorganic/Organic/Agro-Chemicals
|
8
|
6
|
10
|
7
|
11
|
5
|
|
Plastics & Linoleum Products
|
9
|
6
|
17
|
11
|
21
|
10
|
|
Machinery & Instruments
|
2
|
1
|
13
|
9
|
26
|
12
|
|
Cereals/Processed food & Vegetables.
|
|
|
3
|
2
|
6
|
3
|
|
Software/IT Computers.
|
|
|
3
|
2
|
3
|
3
|
|
Other Commodities.
|
49
|
|
|
|
28
|
|
Main Imports of India |
2000-2001
|
2001-2002
|
2002-2003
|
|
$ million
|
%
Share
|
$ million
|
% Share
|
$ million
|
%
Share
|
|
Total
|
19
|
|
32
|
|
35
|
|
|
Cashew Nuts
|
5
|
26
|
5
|
17
|
3
|
8
|
|
Pearls Precious Semi-Precious Stones
|
3
|
14
|
3
|
11
|
4
|
12
|
|
Dyeing, Tanning, Colouring Materials.
|
2
|
13
|
13
|
40
|
10
|
28
|
|
Metalliferous Ores & Metals
Scrap
|
1
|
7
|
2
|
5
|
2
|
5
|
|
Leather & Leather Products
|
1
|
6
|
1
|
5
|
2
|
5
|
|
Raw Hides & Skins
|
1
|
4
|
2
|
6
|
6
|
19
|
|
Cotton & other Agricultural
Produce.
|
|
|
|
|
4
|
13
|
|
Non Metallic Minerals manufacturers
excluding pearls
|
|
|
1
|
2
|
1
|
1
|
|
Other commodities
|
6
|
|
5
|
|
3
|
|
Source: Directorate General of Customs
Statistics, Calcutta
In 2002, India ranks at no.4 among the top sources of
imports for Kenya.
In 2002, India ranks at no.10 among
the major markets for Kenyan products.
Source: Indian High Commission, Kenya
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