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Article Details ::
Article Name :
A BRIEF LOOK INTO INDO-KENYA TRADE RELATIONS
Author Name :
Nathan Gitonga
Publisher :
Ashok Yakkaldevi
Article Series No. :
ROR-1401
Article :
Author Profile
Abstract :
The economic performance of Kenya has recorded significant improvement within the last two decades, as it keeps on recovering from past external and internal shocks. The country’s economy is greatly dependent on Agriculture. Until 2013, India was the largest source of imports for Kenya. Imports from India accounted for approximately 14.1 percent of Kenya’s total imports. The trade relations between Kenya and India started before Kenya’s independence. Recently, investment and trade partnerships between the two countries have culminated in a wave of new investments. Bilateral trade between India and East African countries was worth US$3,900.67 million during 2009-10 as compared to US$ 4,863.22 million during 2008-09. Kenya exports are mainly dominated by agricultural commodities, namely tea, coffee and horticultural products. Kenya also exports significant amounts of clothing and apparel to foreign nations. Even though Kenya exports low-value main commodity exports to India, the country imports high-value products. Kenya’s exports to India and other countries are vulnerable to both weather conditions and international prices, making it a deficit country with regards to trade balance. Kenya being a major trading partner, India has come out to be the second largest investor in Kenya’s economy. Kenya’s trade policy has evolved through three distinct policy orientations namely Import Substitution Policies; Trade Liberalization by the Structural Adjustment Policies; and Export Oriented Policies. There is a great possibility that trade ties between the two countries will continuously grow, given the nature and number of investments recorded currently.
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