Press Information Bureau

Government of India

Ministry of Commerce & Industry

29-August-2011 19:18 IST

India-South Africa Trade to Reach USD15 Billion Before 2014: Anand Sharma Second India South Africa CEO Forum Meet Takes Place

The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma expressed the confidence that India and South Africa will achieve the target of trade to USD15bn by 2014 before the deadline. “We are satisfied on the growth of trade and investment relations between the two countries. ….. We are hopeful to achieve the target of US$ 15 billion in the year 2014” said Shri Sharma while interacting with the India South Africa CEO Forum along with his South African counterpart Dr Rob Davies here today.

The CEOs of the two countries led by its two Chairmen, Mr Ratan Tata, Chairman, Tata Sons and Mr Patrice Motsepe, Executive Chairman, African Rainbow Minerals met for the second meeting of the India-South Africa CEOs Forum here today. They met with the objective to give further impetus to the growing bilateral economic relations, the Indian and the South African CEOs. The meeting addressed the challenges and constraints hampering the growing economic partnership.

The Sectoral Groups on Financial Services, Pharmaceuticals and Healthcare, Infrastructure and Energy, Manufacturing and Mining came out with a set of comprehensive recommendations which focused on constraints and issues that confronted businesses on both sides in these sectors. The recommendations were presented to Mr Anand Sharma, and Dr Rob Davies, Minister for Trade and Industry, South Africa who joined the CEOs for an interaction.

Taking forward the agenda of the first meeting that was held in August last year further, the sectoral Groups led by their respective Chairmen discussed at length issues like tariff barriers, visa constraints, early finalization of PTA, technology transfer etc that if addressed in the right manner would help in promoting bilateral trade and investments.

The two Ministers took cognizance of the recommendations that were brought to their attention and assured the forum to look into their suggestions and recommendations. The Minister expressed their desire to expedite PTA negotiations. Both the ministers agreed that a friendly visa regime for business people should be established.

In the year 2010-11, provisional figures show 37.64% increase in the bilateral trade which stood at US$ 10,643.52 million with export of US$ 4,161.51 million and imports of US$ 6,482.01 million. Investments from and into South Africa has also seen substantial rise. Indian High Commission figures put the cumulative value of Indian investment in South Africa at US$ 6.7 billion. Shri Sharma expressed happiness over the substantial and healthy growth in two way investment flows. Principal commodities of Export from India to South Africa includes: transport equipments, petroleum (crude & products), drugs, pharmaceuticals & fine chemicals, machinery and instruments , electronic goods, manufactures of metals, plastic & linoleum products, primary & semi-finished iron & steel gems & jewellary. And the principal commodities of Import from South Africa to India are: Gold, coal, coke & briquittes, metalifers ores & metal scrap, inorganic chemicals, iron & steel, non-ferrous metals, machinery except electric & electronic, organic chemicals, pearls, precious semiprecious stones, transport equipments

The meeting was well attended by more than close to 35 South African and Indian CEOs.

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Bilateral trade target accelerated by joint recommendations to remove tariff and visa constraints and boost investment flows. The Forum reviewed recent growth in bilateral trade and investment and presented sectoral recommendations addressing tariff barriers, visa constraints, technology transfer and other impediments. Ministers committed to expedite Preferential Trade Agreement negotiations and to establish a friendlier business visa regime, endorsing operational steps to promote two way investment flows and convert CEO proposals into governmental action to deepen economic engagement.