India calls on SA companies
Shaun Benton
1 June 2007The Indian government is looking to South Africa for partnerships, and has identified several business opportunities for local companies on the sub-continent.
Indian secretary of state for external affairs, Anand Sharma, made the request while addressing a conference hosted by the Confederation of Indian Industry in Cape Town last week.
He gave an example of the large agricultural sector in India, which lacked the expertise to produce processed foodstuffs. He said while the country probably produced more fruit and vegetables than any other, only 3% of the produce was exported and as much as 40% of it was lost after harvesting.
Sharma also pointed out that the hospitality sector in India was experiencing a shortage of rooms, an area in which South African companies could get involved.
South African Deputy Minister of Communications Radhakrishna Padayachie pointed out to electronics retailer Sahara Computers and food retailer Shoprite as South African companies making inroads in the Indian market.
According to Sharma, trade between South Africa and India is increasing at the rate of 30% per year. He said that trade between the two was reaching US$5.6-billion, with the balance of trade favouring South Africa by around $1-billion.
This was excluding imports of gold from South Africa, which are high considering that India is a major manufacturer and exporter of gold jewellery.
Sharma said the two governments wanted to see bilateral trade trebling by 2010, or at least reaching US$10-billion, as called for by senior officials of both countries.
For its part, he said India was assisting South Africa in human resource development, capacity building and skills training, adding that both countries were looking for this cooperation to be increased.
"There is a political understanding [between the two countries] at the highest level," Sharma said, adding that both countries must "move fast" to catch up to the levels of economic development such as that of their former colonial power, Britain.
Indian Consul-General, Ruchira Kamboj, told the gathering of business leaders that a recent report by international investment analysts Goldman Sachs suggested that the economies of the world's developing countries could jointly be greater than those of the leading G8 industrialised powers in four decades.
Indian High Commissioner Rajiv Kumar Bhatia added that between six and eight business promotional events were being organised by the Indian High Commission between March and November this year.
Source: BuaNews
