4 May 2012
South Africa and India are set to reach $15-billion in trade ahead of their targeted 2014 deadline, President Jacob Zuma told the South Africa-India Business Forum in Pretoria on Thursday.
The target was set by the two governments during Zuma’s state visit to India in 2010. Zuma said that, going by the latest trade figures – close to $7-billion by the end of 2011 – this could be reached earlier than anticipated.
“We are on the right path indeed,” Zuma said.
The business forum forms part of Indian President Pratibha Devisingh Patil’s state visit to South Africa. Patil, who arrived in South Africa on Wednesday, has brought a business delegation and several government officials along on her visit to the country.
Expanding economic cooperation
Zuma said South Africa and India were exploring ways of expanding economic cooperation, adding that opportunities existed in areas including manufacturing and energy.
India is one of South Africa’s top 10 export countries, and is among the top five import countries for South Africa. South African exports to India increased by 21% between 2002 to 2011, while imports from India grew by 28%.
Indian companies already investing in South Africa include Mahindra and Tata, while several South African companies operate in India, including Airports Company South Africa (Acsa), which is assisting with India’s Mumbai Airport. Petrochemicals giant Sasol is also considering investing in the Asian country.
Also addressing the forum, Business Unity South Africa (Busa) president Futhi Mothapa said strong people-to-people links existed between the two countries, and that private sector discussions at the forum had been “forward-thinking”.
Several platforms for South African-Indian business interaction already exist, including the SA-India CEOs Forum and, multi-laterally, the India, Brazil, South Africa (IBSA) Business Forum and the BRIC Business Forum.
Making it easier to do business
Mothapa noted that there were some hindrances to growing trade and investment between the two countries. South African companies would like to see greater transparency in India’s tariff scheduling, she said, as well as more clarity on Indian regulations around licensing and packaging.
Black Business Council president Ndaba Ntsele said Patil’s visit came at an opportune time, with South Africa having just announced the start of a massive state-led infrastructure programme.
Patil told the forum that India viewed South Africa as “as a gateway to the southern African region”, adding: “Our confidence in the South African economy is reflected in that several Indian banks operate in South Africa.”
At the same time, she called on South African business to seize the opportunities on offer in India.
The chairman of the Overseas Infrastructure Alliance India, VB Soni, said Indian business was ready to cooperate with South Africa for mutual benefit, adding that there were opportunities for increased cooperation in healthcare and pharmaceuticals.
He added that India was looking for the establishment of a friendlier visa regime for Indian businesses.
Zuma said South Africa was ready to provide whatever support was needed for making it easier for Indian companies to do business in the country.
Source: BuaNews
