The Deputy Minister of Trade and Industry Ms Elizabeth Thabethe says there is a need to promote the export of value-added products to India. Thabethe was addressing South African and Indian business people at a business seminar that was hosted by the Department of Trade and Industry (the dti) at the Taj Hotel in New Delhi, India yesterday. Thabethe is on a five-day visit to India on an Investment and Trade Initiative which ends in Mumbai on Friday.
"In 2012, the total trade between our two countries was worth about R62 billion. South Africa exported mainly coal, iron and steel, inorganic chemicals and ores, whereas we received mostly petroleum products, motor vehicles and pharmaceutical products from India. This clearly shows that South Africa’s exports mainly consist of raw materials and that there is a need to diversify the composition of South Africa’s exports to India towards value-added products and services," said Thabethe.
She added that as India’s economy continued to grow, so too will its requirements for Africa's resources, providing further impetus to the African growth. She urged India not to only concentrate on Africa for its resources but also to source manufactured products from countries on the continent. There are many opportunities in this regard that can be taken up by the Indian importers and traders, she said.
"Trade between the two countries has received a lot of attention over the past couple of years. The rationale for this is rooted in the enhancement of South-South economic integration and cooperation. The broadening of economic space through larger consumer markets gives developing countries such as both South Africa and India the opportunity to develop economies of scale, increase their competitiveness and become global competitors," said Thabethe.
Speaking at the same event, the Senior Member of the Executive Committee of the Federation of Indian Chambers of Commerce and Industry, Mr Bikramjit Singh Sahney, also underscored the importance of the participation of Indian companies in the beneficiation of the South African minerals and all other raw materials.
"The bilateral trade between South Africa and India has been consistently in favour of South Africa. Imports from South Africa are higher than India’s exports to South Africa. But Indian businesspeople in the mining sector and other sectors like agriculture have started to concentrate their focus on beneficiation and value-addition inside South Africa in order to bring back valued added products or semi finished products to India. In this way, it will be a win-win situation for both India and South Africa,” said Sahney, who is also the Honorary Consul for North India in South Africa.
The Acting High Commissioner of South Africa to India, Mr Malose Mogale, also addressed the seminar. He urged the business people from South Africa and India to work together and explore the unlimited economic opportunities that exist between the two countries.
Enquiries:
Bongani Lukhele, Acting Chief Director: Media Liaison
Tel: 012 394 1643
Cell: 079 5083 457
E-mail: BLukhele@thedti.gov.za
