India, SA to sign FTA in 18 months

India and South Africa are in talks for a possible Free Trade Agreement (FTA) which could materialise in the next 18 months. Addressing a meeting organised by Southern India Chamber of Commerce and Industry (SICCI), Paresh Pandya, the manager (investment promotion) of Mpumalanga Investment Initiative, said, "negotiations are on between the India and South Africa for a FTA, and is expected to be finalised in the next 18 months."

"By entering into a FTA with South Africa, India would have access to all the member-countries of Southern African Development Cooperation Consul (SADCC) for a FTA," he added. SADCC is a regional agreement between the Southern African countries consisting of South Africa, Botswana, Lestho, Swaziland and Nambia.

Pandya said, "South Africa is one of the countries in the world to produces power at the lowest cost and has good transport infrastructure. India can start joint venture as well invest in manufacturing sector, agro processing, steel, minerals and oil in South Africa."

A Vellayan, the vice-president, SICCI, said: " India's export to South Africa increased to $138.4 million for April-July in 2003 from $118.8 million for the same period last year. India's exports to South Africa are very small in terms of value."

Major exports from India include inorganic, organic chemicals, ceramics, machinery and equipment, transport equipment, primary and semi finished iron, steel etc.

"Gold accounts for 50 per cent of India's import from South Africa followed by coal, coke, organic and inorganic chemicals, pearls, machinery, pulp and paper waste. India's import from South Africa have jumped to $ 844 million for April-July in 2003 from $534.4 million during same period last year, Vellayan added.