India has stepped up trade and investment in hydrocarbons in Africa, with nearly 17% of its total crude oil imports coming from Africa by 2016. This petroleum-related foreign direct investment and trade can be mutually beneficial in the short term, providing African exporters with a foreign market and helping India meet its energy needs. Such deals may become less effective economically over the medium and long term, however, given the increasing availability and cost-competitiveness of renewable energies, an array of restrictions and taxes on carbon emissions, and diminishing returns in the ratio of energy production to energy output.
