Buoyed by the massive growth recorded in trade between India and South Africa, and the huge potential it holds for the future, the two countries have decided to set a target of achieving $15 billion bilateral trade by 2015.
The two countries are also set to breach the $10 billion two-way trade target by next month, 23 months ahead of schedule. Mr. Sharma was speaking in Johannesburg during the inauguration of the first branch office of state-run commodity trading enterprise MMTC. Mr. Sharma, who met the South African President, Jacob Zuma, on Monday, will also have a bilateral meeting with South African Trade and Industry Minister Rob Davies.
Addressing the India Business Forum meeting in Johannesburg, Mr. Sharma said a huge untapped potential existed in the area of investment and bilateral trade between India and South Africa. He said India had become an important destination for investment and the country was looking towards foreign capital to fulfil its development requirements. “There is a need to move into other sectors. Besides the business areas mentioned above, South Africa offered enormous opportunities for Indian firms, especially in sectors such as construction and engineering, mining, renewable energy and space science,” he added.
Mr. Sharma also participated in the commemorative celebrations of 150 years of arrival of Indians in South Africa. During his meeting with President Zuma, the Commerce Minister congratulated him on South Africa joining the BRIC (Brazil, Russia, India, China) group.
Referring to India-SACU (South African Customs Union) Preferential Trade Agreement (PTA), Mr. Sharma said that India was now hoping for early conclusion of India-SACU PTA which would provide boost to ongoing levels of bilateral trade, especially in products such as pharmaceuticals, machinery and automobiles, where India enjoyed a competitive advantage.
India is South Africa's largest trading partner in South and Southeast Asia and one of South Africa's top-ten trading partners globally. Total trade has more than doubled since 2004-05 to cross $7.5 billion. The bilateral trade has grown from $3.18 billion in 2004-05 to $7.73 billion in 2009-10.
