'India-SA bilateral trade may touch USD 15 bn in FY 12'

MUMBAI: Bilateral trade between India and South Africa is expected to surge by a whopping 50 per cent to around $ 15 billion in FY 12 against $ 10 billion in the current fiscal, a senior South African Minister today said.

"The bilateral trade between both the countries is growing and we have almost touched our target of $ 10 billion for FY 11. We expect to reach $ 15 billion in FY 12," Republic of South Africa Trade and Industry Deputy Minister Elizabeth Thabethe told reporters here.

The minister is here on her last leg of a week-long visit to India heading a business delegation of 35 companies, of which 90 per cent are small and medium enterprises (SMEs).

She said that South Africa has huge potential for Indian investments, especially in sectors like manufacturing, mining, tourism, SMEs and Information Technology in which local talent can be tapped.

The minister emphasised that South Africa is providing incentives worth 200 million rands to companies to invest and set up business in the country that will enhance the local skills and also generate employment.

"We don't want to be just raw material provider that does not benefit our people. We want the Indian companies to set up manufacturing units in South Africa that will add value to the raw materials," she said.

The trade between both the countries should be balanced, she said. Unemployment is a huge issue in South Africa and President Jacob Zuma has set a target to generating five million jobs by 2020.

India and South Africa has skills and technology that can help both the nations and help them accelerate the bilateral trade between them. "It will also help South Africa achieve its employment target," she said.