India Inc. to benefit from PM's visit to South Africa

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According to news reports, while Dr. Singh's visit to take part in Mahatma Gandhi's Satyagraha centenary celebrations primarily aims to strengthen political ties, the two sides would also discuss the possibility of a preferential trade agreement to increase bilateral trade to about $ 10 billion by 2010 from just $ 4 billion a year ago.

Simultaneously, a team of top corporate leaders would take forward the economic and commercial relationship of India and South Africa, the continent's largest economy.

The India-South Africa CEOs forum, co-chaired by Tata Group chief Ratan Tata, would seek to explore specific business opportunities in various sectors of mutual interest.

Besides the Tata Group, which is the largest Indian conglomerate in South Africa with presence in steel, auto, coffee, IT and hospitality, other aspiring Indian multinational companies such as banking powerhouse ICICI, and drug giant Ranbaxy are part of the team.

The promise of greater trade ties between the two regions was also reflected in a World Bank study last month that said India's foreign direct investments in Africa, though presently modest, was growing very rapidly.

Mittal Steel, owned by NRI steel tycoon Lakshmi Mittal, too has acquired state-owned steel maker Iscor in 2004 - though it hardly qualifies as an Indian investment.

About 35 homegrown corporates have a significant presence in South Africa, with Indian investment likely to be more than $ 500 million over the next one year.

Indian investors include Tata Group, auto majors Ashok Leyland and Mahindra and Mahindra; pharma companies such as Ranbaxy, Cadila and Cipla; IT software and hardware companies like Zenzar Technologies and Sahara Computers, as well as banks like ICICI and State Bank of India (SBI).

Tata Steel is building a $ 100 million ferrochrome plant in KwaZulu-Natal region, while VSNL would invest about $ 200 million in fixed-line telecom services. Tata Group would also set up hotels in Johannesburg, Cape Town and Durban under its hospitality chain Taj brand of luxury hotels.

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