Trade can top $10bn

Johannesburg - India's Minister of Commerce and Industry Anand Sharma said on Monday that a projected $10bn in trade between SA and India by 2012 can be achieved as early as 2011.

"It is well below potential. I think it is doable by 2011 and then we can look at higher targets," he said on Monday at the opening of the biggest-yet India Show in SA.

"The opportunities are limitless. South African corporates are also coming to India with optimism," he said.

He said much of the growth and collaboration should come in the ideas and services arena, rather than raw materials. "This can generate wealth and jobs," he said.

Sharma feels that the countries from the south of the world map can become the major force in the world economy in the next century.

"India and South Africa are natural partners," he said.

He is hoping for an early conclusion to current discussions around a preferential trade agreement with the Southern Africa Customs Union, that being the precursor to a trilateral agreement with Brazil (via the Ibsa grouping, comprising India, Brazil and South Africa) and then Mercosur (the top Latin American trade grouping).

"It will enhance commerce and investment between the three continents," he said.

Sharma says investments from India into SA total $6.5bn, while from SA to India it is $3bn. Bilateral trade has crossed the $7.7bn mark. But he said that in the first quarter of 2010, trade of $2.75bn was registered, indicating the $10bn target by 2012 could be achieved early.

Minister of Trade and Industry Rob Davies said a negotiating round on the preferential trade agreement would be taking place shortly. "We want to move as fast as we can," he said.

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