India, which has close diplomatic and political ties with South Africa, is to push this week for greater exports to rectify a widening gap in trade with its closest ally on the African continent, Indian officials said.
Foreign Minister Yashwant Sinha, now visiting Mauritius, will lead an Indian delegation into a two-day meeting of the Indo-South African Joint Commission when he arrives in Pretoria on Thursday, they said.
”The commission will discuss the status of cooperation in sectors such as trade and investment, defence, culture and coordination of political views,” the foreign ministry here said in a statement.
Ministry officials said Sinha’s trip also aimed at preparing the way for a state visit to India by President Thabo Mbeki in October.
Other Indian officials and diplomats here said the fifth meeting of the joint commission would likely also focus on South Africa’s efforts to clinch an artillery factory deal in India, while New Delhi is likely to underline the growing trade imbalance in favour of South Africa.
Indo-South Africa relations gained momentum after a December 1996 visit by Mbeki, then deputy president, which led to a joint call for a strategic partnership against a world order that neglected developing nations.
The visit also helped jack up bilateral trade from $573,38-million in 1996 to $637,24-million the following year, soaring to R1,39-billion in 1998 with the return of Prime Minister Atal Behari Vajpayee’s BJP party-led coalition to power.
”But since 1996 two-way trade has been tilting against our interests and in 1998 the balance was a staggering $963-million in their favour, which needs correction through greater Indian exports,” a top official said.
In 2000-2001 trade rose to R1,75-billion with the tilt dipping even more in South Africa’s favour.
The two sides have pledged to boost commerce to $5-billion by 2007 through multi-lateral trade with other sub-Saharan states.
India argues that South Africa could also turn into a springboard to other African states for Indian goods such as Basmati rice, textiles and garments, machine tools, cosmetics, silks, herbals, drugs and pharmaceuticals.
South Africa, Indian officials argue, should boost its information technology imports from India.
”We are saying that since India is a superpower in information technology, South Africa should step up software imports which will even out business,” an official said in the runup to the joint commission meeting in South Africa.
South Africa sees a marketing potential in India for its Boer goats, specialised steel, safety equipment, telecommunication equipment, chemicals and now wines as India softens liquor import policies.
The joint commission is also likely to announce a landmark collaboration between South Africas Foskor fertiliser firm and a state-run company in the south-eastern Indian state of Andhra Pradesh, diplomats added.
”But India is likely to keep on ice proposals by South Africa’s Denel to set up a factory in India’s Bihar state to manufacture shells for Bofors howitzers because of the political implications,” an Indian official said.
The government here, facing state elections this year and national polls in 2004, is wary of scandals involving defence deals — especially Bofors as the purchase of the Swedish guns in 1985 led to the fall of then premier Rajiv Gandhi’s government over a kickback row.
The two sides have several joint collaborations including a tie-up between South African Breweries and India’s privately-run United Breweries and a smelting plant in South Africa and India’s Tata business group. – Sapa-AFP