South Africa and India have set an ambitious bilateral trade target of US$180 billion by 2018, almost double the 2015 total which stood at US$94 billion.
The Indian high commissioner to South Africa, Ruchi Ghanashyam, pointed to the R1.3-million investment in a biotech manufacturing plant in KwaZulu Natal – announced last month by Indian pharmaceutical company Cipla – as a sign of confidence in India/SA trade relations.
“Our countries are major players in the global economy and share a common vision of shaping the development agenda through the India-Brazil-South Africa Dialogue Forum, the Brics trade bloc and other related trade platforms,” she said.
Ghanashyam added that South Africa needed to look at making trade and investment easier by removing barriers that were impeding the expansion of trade. This includes cutting red tape and providing more policy certainty.
Exports from India to South Africa include vehicles and original equipment manufacturer (OEM) parts, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, gems and jewellery. Exports from South Africa to India include gold, steam coal, copper ores and concentrates, phosphoric acid, manganese ore, aluminium ingots and other minerals.
Matthew Conroy, trade manager of Maersk Line southern Africa, is positive that India – as one of the world’s fastest growing economies – will be a lucrative trading partner for South Africa going forward due to its expanding automotive, telecommunications and pharmaceutical sectors.
“Although Maersk Group has been transporting cargo to India for many years, we only started calling directly on India from February 2015, having previously transported goods via the Middle East. The direct route was established due to increased demand, and we have subsequently experienced an increase in the volumes of various commodities transported to India,” he said.
