Chad-India relations

Category: International Relations

Chad-India relations

High Level Visits

The diplomatic relations between Chad and India have been on an upward trajectory since 2004, marked by a series of high-level visits and mutually beneficial interactions. These engagements have significantly enhanced bilateral cooperation in various sectors. One of the most noteworthy early visits was made by Chadian Deputy Prime Minister and Foreign Minister Nagoum Yamassoum in March 2005, who traveled to New Delhi to participate in the first-ever India-Africa Project Partnership Conclave. This event was pivotal, as it symbolized Chad's intent to strengthen ties with India and marked the first instance of a Chadian government official visiting India.

In furtherance of these diplomatic efforts, Minister of State for Agriculture Arun Yadav visited N'Djamena on May 10, 2011. This visit was particularly significant as Yadav was the first Indian government official to visit Chad, marking a new chapter in bilateral relations. During his meeting with President Idriss Deby Itno, agricultural cooperation was identified as a key area for collaboration, reflecting India's commitment to support agricultural development in Chad, which is essential for food security and economic growth in the country.

The close relationship between the two nations was further highlighted in October 2015 when President Idriss Deby Itno led a substantial delegation of 32 members to New Delhi for the third India-Africa Forum Summit. The delegation included several Cabinet Ministers and high-ranking officials, showcasing the importance of this engagement. During the summit, President Itno held bilateral talks with Prime Minister Narendra Modi on October 28, focusing on enhancing cooperation in areas such as trade, investment, and technology transfer. These interactions reinforced the mutual desire to strengthen diplomatic ties and explore new avenues for collaboration, highlighting the potential for greater economic and cultural exchanges between Chad and India.

Overall, the series of high-level visits not only emphasized the significance of bilateral relations but also opened doors for future cooperation between Chad and India in multiple sectors, contributing to regional stability and development. As both countries look ahead, continued collaboration in various fields will be crucial in fostering enduring and robust ties.

Trade Relations

The trade relationship between Chad and India has seen significant transformation over the years, particularly around the era of 2015-16 when bilateral trade reached a noteworthy total of approximately US$364.36 million. India's exports to Chad reflected a robust growth pattern, escalating from $11.90 million in the financial year 2010-11 to $43.49 million by 2015-16. This upward trend indicates a strengthening economic relationship and a growing demand for Indian goods in the Chadian market. Conversely, Chad's imports to India depicted a more volatile trajectory, with an initial rise from a mere $150,000 in 2011-12 to an impressive $157.15 million in the subsequent fiscal year. However, this growth was not sustained, as imports faced a steep decline of 73% and 52% over the following two years, reflecting the fluctuating nature of trade dynamics between the two nations.

It is crucial to highlight that the reported figures may not encompass the complete range of Chad's imports from India. Notably, Chad has been known to source various Indian products through intermediary markets in Dubai, Cameroon, and Nigeria, which complicates direct measurement of trade volume. A significant milestone occurred during the 2015-16 financial year when India initiated imports of crude oil from Chad, contributing to an astronomical 411% increase in overall imports that year. Crude oil has emerged as a dominant export from Chad to India, accounting for an overwhelming 97% of the nation's exports during this time frame, indicating India's growing reliance on Chadian oil.

Telecommunication Investment

Beyond trade in goods, economic partnerships have also flourished in various sectors, most notably telecommunications. In June 2010, Bharti Airtel, one of India's leading telecom companies, made headlines by acquiring Zain's mobile operations across 15 African countries, including Chad, for a substantial sum of $8.97 billion. This acquisition stands as India's second largest overseas investment, following Tata Steel's $13 billion acquisition of the Corus Group in 2007. Following the completion of this acquisition, which was finalized on June 8, 2010, Bharti Airtel committed over $100 million to expand its network infrastructure in Chad. As a result of these investments, Bharti Airtel has established itself as the largest mobile network operator in the country, significantly enhancing telecommunications access and services for the local population.

Duty-Free Access Initiative

Additionally, India has proactively sought to bolster its trade relationship with Chad through policy initiatives. In 2008, India proposed to grant Chad unilateral duty-free tariff preferential market (DFTP) access for the export of goods and services. This offer was aimed at stimulating trade growth and establishing more favorable conditions for Chadian exports to India. However, as of December 2016, the Government of Chad had not officially ratified this agreement, which indicates potential challenges in formalizing trade policies, despite the evident economic benefits that such an arrangement could yield for both nations. Looking ahead, the strengthening of diplomatic and economic ties between Chad and India could pave the way for enhanced cooperation not only in trade but also in sectors such as investment, technology transfer, and mutual development initiatives.

Foreign Aid and Economic Cooperation

India has been a significant partner in development and humanitarian assistance to Chad, demonstrating its commitment to fostering strong bilateral ties through various aid initiatives. In 2004, India made a notable contribution by donating 5,000 metric tonnes of rice to help alleviate food scarcity in the region. This gesture was part of a larger strategy to support food security and ensure that the most vulnerable populations in Chad have access to essential resources. Alongside this humanitarian aid, India has engaged in more comprehensive development programs, including providing lines of credit that enhance Chad's manufacturing capabilities.

Under the TEAM-9 initiative, India extended a line of credit amounting to $50 million to Chad, which has facilitated the establishment of five key manufacturing projects. These include a bicycle manufacturing facility, a plant for the production and assembly of agricultural machinery such as tractors and power tillers, a steel billet plant and rolling mill, a cotton yarn manufacturing plant, and a fruit juice production unit. Such projects are crucial for not only creating jobs but also for boosting the local economy and reducing dependency on imports.

Further cementing its commitment to Chad, India signed an agreement on January 19, 2012, to provide a $40.32 million line of credit for four additional projects. These initiatives involve the development of renewable energy through a solar rural electrification project, enhancing local textile production by expanding the weaving and processing capacities of a spinning mill, establishing a compost production unit, and setting up a plant for animal feed. Recognizing the evolving needs of the agricultural sector, the original plan for a livestock feed plant was replaced with a more focused animal feed plant, supported by an updated line of credit of $9.3 million in 2013. In the same vein, India allocated an $18.08 million line of credit in May 2012 for a pharmaceutical manufacturing plant, addressing the critical healthcare needs of the Chadian population.

In addition to financial assistance and infrastructure development, India is actively involved in educational and diplomatic exchanges. The Government of Chad signed a Memorandum of Understanding (MoU) in May 2009 to implement the Pan-African e-Network project, aimed at enhancing telecommunication and educational infrastructure across Africa. As of December 2016, India's Telecommunications Consultants India Limited (TCIL) has been executing the installation of this project in N'Djamena, providing a technological boost to Chad's connectivity.

Moreover, educational opportunities have been made available to Chadian citizens under the Indian Technical and Economic Cooperation (ITEC) Programme and the Indian Council for Cultural Relations. These programs offer scholarships, promoting further education and skills training in various fields. This commitment is also evident in the professional development of Chadian diplomats, who have participated in the Professional Course for Foreign Diplomats (PCFD) hosted by India’s Foreign Service Institute. Additionally, Hindi language training fellowships have been provided for Chadian nationals, underscoring India's effort to foster cultural exchange and strengthen people-to-people connections.

Indians in Chad

As of December 2016, the Indian community in Chad was estimated to be around 200 individuals. This small yet significant expatriate population is primarily involved in various sectors critical to the country's economy, notably in oil exploration and production, as well as foreign trade. Many Indians also find employment with international organizations, contributing to humanitarian efforts and development projects within the nation. Additionally, Bharti Airtel, a major telecommunications provider, employs several Indians, further integrating them into the local economy.

However, reports have surfaced concerning the mistreatment of Indian workers by some local employers and authorities. Such instances have raised concerns among expatriates, impacting the overall experience of Indians living and working in Chad. Despite these challenges, the resilience of the Indian community has allowed them to sustain their presence and contribute positively to the socio-economic landscape of Chad.

The history of the Indian community in Chad is marked by significant events, including a mass evacuation in February 2008. Following rebel attacks that erupted in the capital, N'Djamena, the High Commission in Abuja took swift action to evacuate almost the entire Indian populace for their safety. This humanitarian response underscored the importance of secure environments for expatriates engaged in essential services in unstable regions. Thankfully, as the violence subsided, the Indian community was able to return to Chad, demonstrating their commitment to the nation and reinforcing their ties with the local populace.

Over the years, the Indian community has forged cultural and economic ties in Chad, contributing not only to various sectors but also participating in community initiatives aimed at fostering goodwill and understanding between Indians and Chadians. As geopolitical dynamics continue to evolve, the presence of Indians in Chad remains a testimony to international cooperation and the shared aspirations of both nations toward stability and development.