India today said it will explore opportunities for a comprehensive market opening trade pact with South Africa as the two nations are likely to touch the $10 billion bilateral commerce this year.
"We are going to examine a Comprehensive Economic Partnership Agreement (CEPA) between India and South Africa, as the country is a strategic partner," Commerce and Industry Minister Anand Sharma said at 'India Show' organised by industry chamber CII here.
Trade between the countries have increased from $7.49 billion in 2008-09 to $7.7 billion in the last fiscal.
During the visit of South African President Jacob Zuma to New Delhi in June, the two sides had set a target of $10 billion trade by 2011-12.
"(However) in the first quarter of this fiscal the (bilateral) trade has already reached 2.7 billion. If we continue at this pace ... We will be able to achieve this ($10 billion trade target) this year only," Sharma said.
On the ongoing negotiations for India-Southern African Customs Union (SACU) limited free trade pact, he said the two sides want to wrap it up at the earliest.
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"We are for an early conclusion of the preferential trade agreement (PTA), which would pave the way for providing a greater impetus to bilateral trade and investment," he added.
Four rounds of talks have completed, and officials from the two sides would again meet in New Delhi next month to discuss issues related to tariff and other barriers to trade.
SACU is a customs union comprising Bostwana, Lesotho, Namibia, South Africa and Swaziland.
While under a free trade agreement the signing parties reduce or eliminate tariffs on most of the goods traded between them, the duty cut in PTA is limited to select items.
Sharma and his South African counterpart Rob Davies also held discussions on a proposed Bilateral Investment Protection and Promotion Agreement (BIPPA).
Several Indian companies including Tatas have invested about $6.5 billion in the African country. South Africa too has invested about $3 billion in India.