India has 1.4 billion people and is overtaking China as the most populous country in the world. The African continent has another 1.4 billion people.
We cannot see India as an exotic country, as it is each day more integrated into the world.
Demographically, India’s population averages 28 years old, which is ten years younger on average than the Chinese population. India’s economy has been growing at 6.5% a year and, by 2030, it will be the third largest in the world.
As Professor Mariana Faiad warned us in a recent seminar at the San Tiago Dantas Institute for Law and Economics, India goes far beyond the stereotype of the “land of yoga” or “gurus.”
Governed for decades by the Congress Party, with a strong statist bias, from the beginning of the 1990s India began to open up its economy.
It is true that within India there are several Indies, as it presents great socioeconomic, ethnic, religious, and linguistic inequalities, not to mention a caste regime that still resists. However, it is a developing country that grows fast, with the rise of a large middle class eager for more consumption and integration. The Institutes of Technology are famous for producing skilled professionals and leaders worldwide, such as the CEO of Microsoft and the Alphabet Group (Google).
When participating in the Davos Economic Forum, in January 2023, Natarajan Chandra, CEO of the Tata Group, one of the largest in the country, stated that “the digitization of the Indian economy will lead to its formalization”.
Today, under the Government of Prime Minister Narendra Modi, of the Indian People’s Party, despite some controversial internal policies, India has managed to maintain a foreign policy of automatic non-alignment, sometimes flirting with the United States, sometimes reaffirming historical ties with Russia, and always with a distrustful relationship with China.
Alongside Brazil, India is part of the BRICS. In the rotating Presidency of the G20, this year it will host the meeting between the member countries and, certainly, will make this event a spotlight call for its gradual insertion in the global board of the great economies.
Another region that deserves our attention is Africa, a continent of 54 countries, of which it is worth mentioning South Africa, Nigeria, Kenya, Egypt, Tanzania, and Angola.
The historical links between Brazil and Africa are important and should be cultivated. However, it is necessary to look ahead and make such links work as a positive starting point, identifying business opportunities.
The African continent has the youngest population in the world (19 years old on average). Africa can be one of the protagonists in issues such as energy transition, climate change, and innovation. Tens of millions of people are integrated into the consumer market each year.
It is a fact that several countries in Africa face enormous challenges, some of them similar to those of Brazil, such as marked social inequality, asymmetric growth, violence, and episodic crises in political governance. This is the side better known and exponentiated by the mainstream media. Several countries, like ours, are just global producers and suppliers of commodities.
On the other hand, there are very positive experiences in Africa that can be shared with Brazil. Kenya, for example, has been highlighted by several initiatives in the field of innovation, with many startups and a few unicorn companies each year. Nigeria’s film industry (Nollywood) already has much to teach us for an entertainment economy. Tanzania’s tourism draws attention to its growth. South Africa, the country of Nelson Mandela, is a hub of experience in the financial market. Egypt has sought to position itself as a hub between the continent and the Middle East.
The diplomat and historian Alberto da Costa e Silva once said that between Brazil and Africa, there is only one “river” called the Atlantic.
India and Africa cannot be seen as exotic and distant regions. Without prejudice, we realize that in these regions, like Brazil, there are young people, dynamic entrepreneurs, and an incessant struggle to overcome historical delays and build a new tomorrow.
In areas like health, the pharmaceutical industry, social security system, insurance, energy, capital markets, alternative dispute resolution, agriculture, fashion, and the entertainment industry, many things can be the object of Brazil’s relations with India and Africa.
Adacir Reis is President of the San Tiago Dantas Institute for Law and Economics, partner of Adacir Reis Advocacia – Law Firm, and former National Secretary of Pension Funds (Secretário de Previdência Complementar).
*This article was originally published in Revista Investidor Institucional – Institutional Investor Magazine – 2023 – Jan/Feb. (www.investidorinstitucional.com.br)
