The opportunities to increase and diversify Indian exports to South Africa, an export market that has grown four times over the past fifteen years, will be discussed in detail by senior officials at the Indian Consulate in Johannesburg this week. in an online interaction with Indian companies wishing to explore new possibilities in the post-Covid scenario.
“India’s exports to South Africa, especially automobiles and pharmaceuticals, have been boosted significantly during the pandemic. Similar opportunities also exist for other articles. India’s Consul General in Johannesburg will interact with Indian businesses this week on such opportunities at a virtual meeting hosted by the exporters body FIEO, ”a source said. Activity area.
This is part of the Foreign Ministry initiative launched last year to facilitate and promote Indian exports through its missions and posts in various countries.
Exports to South Africa
Indian exports to South Africa, which amounted to $ 984 million in 2004-05, reached $ 4 billion in 2019-2020, although they declined slightly to $ 3.93 billion in 2020-21 due to the Covid-19 pandemic at the start of the fiscal year. Imports, on the other hand, rose 8.6% to $ 7.5 billion in the year.
Despite the slight decline in Indian exports to South Africa in 2020-2021, items such as motor vehicles saw strong growth of 10.97% to $ 557 million. India, in fact, was the main source country for vehicle imports to South Africa despite the long lockdowns of Covid-19 and the overall decline in vehicle sales in 2020, according to the recent Automotive Export Manual report by the ‘Automotive Industry Export Council. “Auto and parts exports to South Africa have great growth potential, as Indian exporters could also use the country as a hub for exports to other African countries,” said the responsible.
Pharmaceuticals is another area where there are opportunities for accelerated growth in the post-Covid era. India’s exports of pharmaceuticals to South Africa rose 33% to $ 745 million in 2020-2021 and, with a focus on demand, are expected to increase further, the official added.
Besides pharmaceuticals and vehicles and components, India’s exports to South Africa include transportation equipment, engineering products, footwear, dyes and intermediates, chemicals, textiles. , rice, gems and jewelry.
“The key objective of the interactive session is to understand South Africa’s current economic situation in the face of Covid-19, discuss the business opportunities available in the current economic environment and assess future opportunities in various sectors. », According to the FIEO.
As India-South Africa’s ties intensify not only economically but also strategically, as evidenced by the two countries’ recent WTO collaboration on intellectual property flexibilities for products medical Covid-19, the atmosphere is conducive to more business, the source added.
India’s overall merchandise exports in 2020-2021 fell 7.26% to $ 290.63 billion but in the first quarter of the current fiscal year, the country recorded the highest exports on record at $ 95 billion, growing 85 percent from the first quarter of the previous fiscal year.