Indo-SA trade to reach 10 billion dollars by 2012

New Delhi, June 3 : President of South Africa Jacob Zuma and Anand Sharma, Union Minister for Commerce and Industry launched the India-South Africa CEOs Forum in Mumbai on Thursday.

Speaking on the occasion, Sharma said this Forum will provide an institutional platform for sustained business interaction and guidance on policy issues to both sides.

He hoped that the Forum will give dynamic push to the economic relations between the two countries.

The CEOs Forum will be headed by Ratan Tata, from the Indian side and Patrice Motsepe, Executive Chairman, Africa Rainbow Minerals from the South African side. The South African Trade and Industry Minister, Rob Davis, President of Business Unity South Africa, Futhi Mtoba, and representatives of chambers of commerce and industry were present.

"India is South Africa's largest trading partner in South and South-East Asia and one of South Africa's top ten trading partners globally. Bilateral trade which was valued at only US USD 1.3 billion in 2000-01 crossed US USD 7 billion mark in 2008-09. It is expected to touch US USD 10 billion by 2012," Sharma said.

Sharma underlined the potential areas of India - South Africa bilateral cooperation viz., infrastructure and manufacturing, energy, mines and minerals, oil and natural gas, banking and financial services, tourism, pharmaceuticals, automobiles and auto components, textile and garments, fertilizers, information technology, small and medium enterprises and forestry-based produce.

He further said that education and health care are two crucial sectors where our partnership can transform the lives of millions of people. The Minister urged the South African enterprises to invest in India's growing infrastructure projects and agro-processing industry.

"The much anticipated India-SACU (Southern African Customs Union) Preferential Trade Agreement, will eventually lead to a Free Trade Agreement between India, SACU and MERCOSUR. (South American Trading Bloc) An Agreement for Reciprocal Promotion and Protection of Investments is also waiting to be concluded. Early conclusion of these agreements will provide a real impetus to our bilateral trade and investments," Sharma said.

India's total Foreign Direct Investment inflows (equity inflows + reinvested earnings and other capital) during the financial year 2009-10 was to the tune of US USD 34.16 billion. The top sectors that attracted FDI inflows are: services, computer software and hardware, housing and real estate, power, automobile, chemicals etc.