News: India Inc to get a boost with PM's visit to S. Africa

(PTI 01/10/2006) Johannesburg - India's modest investments in South Africa could soon see some impressive progress, with Prime Minister Manmohan Singh's visit to that country providing corporate leaders an opportunity to take forward economic and commercial relationship.

While Singh's visit to take part in Mahatma Gandhi's Satyagraha centenary celebrations primarily aims to strengthen political ties, the two sides would also discuss the possibility of a preferential trade agreement to increase two-way trade to about $ 10 billion by 2010 from just four billion dollars a year ago.

Simultaneously, a team of top corporate leaders would take forward the economic and commercial relationship of India and South Africa, the continent's largest economy.

The India-South Africa CEOs forum, co-chaired by Tata Group chief Ratan Tata, would seek to explore specific business opportunities in various sectors of mutual interest.

Besides the Tata Group, which is the largest Indian conglomerate in South Africa with presence in steel, auto, coffee, IT and hospitality, other aspiring Indian multinational companies such as banking powerhouse ICICI, and drug giant Ranbaxy are part of the team.

The promise of greater trade ties between the two regions was also reflected in a World Bank study last month that said India's foreign direct investments in Africa, though presently modest, was growing very rapidly.