The Hindu Business Line : `Much potential for Indian industry in South Africa'

Mr Essop Pahad (right), Minister in the President Office, Republic of South Africa, with Mr Ratan Tata, Chairman, Tata Sons, at the CII conference on `India-South Africa partnerships for growth: Vision for business & beyond' in Mumbai on Monday. — Paul Noronha

Mumbai , May 2

IN tune with emergent economic trends, greater dialogue between businesses in India, South Africa and Brazil is being mooted.

According to Mr Essop Pahad, Minister in the President Office, Republic of South Africa, the respective business chambers of India and South Africa had formally agreed on co-operation last month.

At a meeting of CEOs here on Monday, wherein the Indian side was led by Mr Ratan Tata, it was further decided to examine how best Brazilian businessmen could also be included in the interactions, Mr Pahad said.

Speaking at a CII-hosted function after the CEOs' meeting, he said there appeared much potential for Indian industry in South Africa particularly given the disparities in economic growth the African country had to tackle. Explaining his country's situation, emerging as it was from a past scarred by apartheid, Mr Pahad said there was a glaring contrast between a section of the population which compared economically to the best in the world and another, the "second economy'', which contributed far less and needed nurturing.

He pointed out that investment by Indian private enterprise in South Africa appeared relevant in that context because Indian companies have faced and addressed similar economic dichotomies back home. Provided it did the "right things'', South Africa's economy is expected to grow at around 6 per cent over the next few years.

The need to include Brazilian business while jointly tapping opportunities in Africa was underscored from an African perspective too, with the South American country finding mention for the influence it wielded in Portuguese-speaking African economies.

Mr Pahad said that at present South African investment in India exceeded that of Indian companies in South Africa. Today's meeting is understood to have also discussed the possibility of Indian and South African companies working together in the infrastructure sector.

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