Sunday Times (Johannesburg)

South Africa: Trade With India Soars

Johannesburg — TRADE between India and South Africa increased by a massive 75% between 2004 and 2005, according to the Department of Trade and Industry.

"South African exports increased by 100%, while imports increased by 55%, making India our 13th-largest trading partner in terms of both exports and imports. Total trade has therefore increased by 75%," said the department's Willem van der Spuy, director: Asia International Trade and Economic Development.

"The underlying reason for this increase can be attributed to growing awareness in South Africa about opportunities in India, as well as Indian awareness about opportunities in South Africa.

"This growing awareness at one level has contributed to companies seeing new opportunities for trade. On another level, existing trading relationships have deepened as confidence and trust have grown."

Ajay Swarup, India's consul-general in Durban, said trade had grown from R8.2-billion in 2004 to R14.5-billion in 2005.

"It is a remarkable upsurge,' said Swarup. "The major South African exports have been gold, diamond, machinery equipment, automotive components and chemicals. It's not just minerals, which some countries tend to import from South Africa. It's mostly manufactured goods.

"Most imports to South Africa from India have been textiles, pharmaceuticals, garments, machinery and automobiles."

He said mutual appreciation of each other's quality and the reliability of each other's suppliers had been contributing factors to the increase.

"Also, the close political relationship and cultural affinity play a part. There are so many similarities between the countries."

Suresh Goel, India's consul-general in Johannesburg, said South African exports to India grew from R3.7-billion to R7.4-billion, and Indian exports to SA rose from R4.5-billion to R7-billion.

He said trade was not only in primary commodities but in manufactured and value-added items.

"What is of greater interest is that our partnership is not just limited to trade. We are partners in multilateral and bilateral forums," he said.

"Our partnership is evolving into a more substantial one where we work together in several disciplines.

"In the area of technology and investment, the number of Indian companies coming to SA and the number of SA companies that have gone into India is truly amazing.

"Our estimate of Indian investment in South Africa would be in the order of $200-million. According to some estimates, another $500-million will come through in the next few years."

Goel said tourism had also grown by more than 50%.

"What is satisfying is that people going from here to India are not just Indians going to discover their roots. We are seeing more people of all communities now visiting the country for both business and pleasure."

Nazir Malek, owner of Malek Travel and Tours, said India had always been a favoured travel destination.

"India is tourist-friendly, and there is no hassle obtaining visas. It is favoured more by Indians who are curious to visit the land where their forefathers came from," he said.

"I found it necessary to set up an India desk at our offices, with an Indian national offering clients first-hand information about the country. Who better to sell the destination than someone from there?"


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