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‘India, Brazil, S. Africa are new engines of growth’

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IBSA summit pinpoints hurdles to trilateral trade.

Making trade baskets heavier: The Brazil Minister for Foreign Trade, Industry and Development, Mr Miguel Jorge,with the Union Minister for Commerce and Industry, Mr Kamal Nath, at the Third IBSA Business Summit 2008, in theCapital on Monday.- Kamal Narang
Making trade baskets heavier: The Brazil Minister for Foreign Trade, Industry and Development, Mr Miguel Jorge,with the Union Minister for Commerce and Industry, Mr Kamal Nath, at the Third IBSA Business Summit 2008, in theCapital on Monday.- Kamal Narang

Our Bureau

New Delhi, Oct.13 Lack of inter regional transport links, shortage of aircraft and limited landing rights were identified as some of the key impediments in achieving a robust trilateral trade between India-Brazil and South Africa (IBSA).

This was the consensus among the key speakers at the third IBSA summit on Monday, organised by the country’s chambers of commerce.

Key economies

The Union Minister for Commerce and Industry, Mr Kamal Nath, identified the three economies — India, Brazil and South Africa – as the engines of growth in the current financial gloom.

“Apart from the food crises, there is economic gloom in countries that were drivers of the world economy.

“IBSA represents the new engines of the world economy,” Mr Nath said, addressing the business conclave.

Trilateral trade

He also sought greater cooperation among the three economies, which are growing at the range of 5-9 per cent GDP rate.

The IBSA member countries are seeking to increase the trilateral trade to $15 billion over the next two-three years from the current level of $7 billion.

Areas of cooperation

Some of the major areas of cooperation among the three countries include infrastructure, mining, information technology, pharma and healthcare, transport, agri-business, skills development and energy sector.

“India is rich in population. Brazil and South Africa are rich in resources.

“IBSA countries must not only make the existing trade basket heavier but also add new items,” added Mr Nath.

Dismissing fears on the impact of the financial crises in the West on India’s exports and FDI inflows, Mr Nath said that he was optimistic that the country would be able to achieve its target for the fiscal.

Reuters reports:

The country expects exports to grow by 30 per cent this month, in line with the growth so far in the 2008/09 financial year, Mr Kamal Nath said on Monday.

“Exports have gone up by 30 per cent and even this month, I feel the exports would go up by that much,” Mr Nath told reporters on the sidelines of a business conference.

(This article was published in the Business Line print edition dated October 14, 2008)
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