Prime Minister of India - Dr. Manmohan Singh

PM's remarks at India-South Africa CEO's Forum

I am delighted to be here at the inaugural Session of the third meeting of the India-South Africa CEOs' Forum. I thank President Mbeki for the personal interest and commitment he has shown in the creation and functioning of this forum. An important aspect of India's changing relationship with the world, and with our key partners, is the growing role of business-to-business interaction. Indeed, in many instances it is closer and deeper people-to-people and business-to-business relations that are driving our bilateral government-to-government relations. I know that all of you share my enthusiasm for closer business and trade relations between our two countries. The CEOs' Forum is an excellent vehicle for our business communities to forge useful linkages and to add dynamism to our bilateral commercial engagement. While it is true that South Africa is India's foremost trading partner in Africa, in terms of global trade of both countries, our bilateral trade is negligible. However, it has shown an impressive increase over the last couple of years. We must work hard to sustain it.

This growing interaction between the business communities of India and South Africa has been driven by the growing confidence of Indian business. The Indian private sector has emerged as the engine of growth in the Indian economy. It has also gone global in a big way. Some Indian companies are already present in South Africa and I hope that more will follow.

Businessmen from both India and South Africa should feel much more at home in each other's countries. English is widely spoken in both countries, and we share values of democracy and pluralism. The presence of a large number of people of Indian origin in South Africa should also help cement our business relationship. The fundamentals of the Indian economy are strong and robust. We are confident of sustaining our high economic performance.

We have been able to register a economic growth rate of 8.0% for four years in a row. Most analysts now believe we can sustain this rate of growth into the medium term. Indeed, we aim to raise the growth rate to the 8-10% bracket in the near future.

Corporations from all over the world are establishing themselves in India. They seek to take advantage of the pool of high quality scientific talent and skilled work force in the manufacturing and services sectors. They see India as a vibrant marketplace and a growing market. They all find India a productive and profitable business destination.

South African companies can also exploit these opportunities and advantages. It should be an incentive to them that several Indian subsidiaries of prominent multinational corporations have out-performed their parent companies!

There is immense scope for India-South Africa cooperation. For example, many global companies have successfully leveraged the advantage India offers to set up R & D facilities and business process outsourcing operations. Infrastructure and power are other areas with excellent potential for collaboration.

Other corporations are planning to expand their operations in India, not only to exploit the enormous opportunities that a market of over a billion consumers offers but to use India as a hub of their activities in the region. With the South Asian Free Trade Agreement in place and India-ASEAN Free Trade Agreement under negotiation, the potential is unlimited. I would not like South African companies to miss the bus. Another avenue which holds excellent potential is not just two-way investment but pooling together of the strengths of the two economies for joint exploration of third markets. I would like you to explore this avenue actively.

Let me conclude by sharing with you the task that President Mbeki and I have set for you! This is to double the trade turnover as well as two-way investment by 2010. With the growth paths on which our two economies are set, this should be feasible. You must put your weight behind it and be willing to explore hitherto uncharted territories. We assure you that both our Governments stand ready to assist you in any way that you may require to achieve this ambitious target.

In conclusion, I would like to wish the Forum all success. I invite you to contribute to the enhancement of the strategic partnership between India and South Africa.

Thank you.