'FTA will bolster India-SA trade'

Bilateral trade between India and South Africa is likely to touch $ 6 billion by 2007 if the two countries agree to sign free trade agreement (FTA), according to an assessment made by the Associated Chambers of Commerce and Industry of India (Assocham).

The industry body brought out a paper on India-South Africa relations and opportunities which was released here by its president Anil K Agarwal.

Speaking on the occasion, Agarwal said that South Africa's imports from India had grown from $539 million in 2003-04 to $960 million in 2004-05, an increase of 53 per cent in one year.

"The African nation can augment its imports from India in areas such as pharmaceuticals, bio-medicines, engineering products, cereals, cotton and iron and steel products," he said.

According to the findings of the paper, South Africa's export basket goes beyond its traditional items like minerals and includes capital equipment like mining machinery and equipment, agro products and textiles and clothing, fruits and juices among other things.

The paper also highlighted the investment opportunities available in South Africa.