The Union Minister of Commerce & Industry Shri Anand Sharma will meet Prime Minister of Mozambique Mr. Alberto Clementino Vaquina, and the country’s Trade Minister Mr. Armando Inroga during his two-day visit to Mozambique from today. In his meeting with Prime Minister Mr. Vaquina, Shri Sharma is likely to discuss the positive developments in the bilateral relations between the two countries in recent years. Shri Sharma is likely to convey Mr. Vaquina that the two sides must exert all efforts to further strengthen political and economic engagement between the two countries as there is huge potential to further increase in cooperation. Issues related to export of coal and commencement of mining are also likely to come up for discussion between the two Ministers.

Later, Shri Sharma will meet Mr. Armando Inroga, Minister of Industry and Trade, Mozambique, where the two Ministers will discuss trade and investment related issues. The two Ministers are likely to take up the issue related to the Duty Free Tariff Preference Scheme for Least Developed Countries, which was announced by Prime Minister Dr. Manmohan Singh during India Africa Summit held in New Delhi in April 2008. The Scheme envisages enhanced market access for Mozambican exports to India. Shri Sharma may also mention to Mr. Inroga that the two governments must encourage trade promotion activities by economic operators on both sides including visits of businessmen and holding of fairs and exhibitions. Issues pertaining to coal mining and exploration of huge reserves of natural gas are also likely to be discussed by the two Ministers. Later, Shri Sharma will deliver a keynote address at a Session on ‘Enhancing Economic Partnership between India and Mozambique’, where members from Confederation of Indian Industry (CII) and Mozambique’s Confederação das Associações Económicas de Moçambique (CTA) will participate.

Mozambique’s exports to India during 2012-13 had an increase of 184.94% amounting to USD 291 million compared to USD 101 million of 2011-12. Of this, export of coal constituted USD 179.63 million during 2012-13 and is the top export item to India. The main items of Indian exports to Mozambique are – petroleum products, drugs/pharmaceuticals, transport equipments, bicycles, metals, cotton yarn/fabrics, machinery and instruments, iron and steel, paper/wood products, rubber made products, chemicals/fertilizers, glassware, electronic goods, paints/enamels, cosmetics and machine tools. The main exports from Mozambique include coal, pulses, raw cashew, coconut, metal ores and scrap metal etc.

India’s investments in Mozambique are estimated around USD 600 million making India the eight largest investor in Mozambique, with Brazil, Portugal and South Africa occupying the first three places.

Trade and investment cooperation: talks to expand market access and energy resource collaboration under a duty free preference framework. Bilateral economic engagement will be advanced through ministerial discussions to expand market access under the Duty Free Tariff Preference Scheme, promote trade facilitation and business promotion activities, and pursue sectoral cooperation. Energy and natural-resource collaboration-notably coal exports, commencement of mining and natural gas exploration-are distinct agenda items, supported by industry consultations to foster investment and trade.