Bilateral trade between South Africa and India, one of the fastest growing economies in the world, is set to grow to $10-billion by 2012, the Indian high commissioner Virendra Gupta said on Tuesday.

Speaking to Engineering News Online at a media briefing in Johannesburg, Gupta noted that trade between the two developing countries had taken somewhat of a knock in recent years, owing to the recessionary economic environment.

However, he believed that the economies had now turned a corner and that economic ties between them would once again return to a robust growth path.

"Looking at current economic trends, the $10-billion trade target is actually very modest, and we will be working to achieve this even before 2012.

"Current trading commitments are already into the double-billion figures, with projects set for implementation ranging at around $8-billion to $9-billion."

Projected joint trade figures for the year are ranging at around $7,5-billion. In 2009, trade figures reached $7-billion, of which $4,5-billion were from Indian investment into South Africa.

India currently boasts economic growth of 8,1%, and it is predicted that the country will overtake Asian giant China as the fastest growing economy by 2017.

Indian deputy-high commissioner Shambhu Kumaran pointed out that the country was faced with power demands that would equal a spend of $1-trillion between 2012 and 2017. "This provides great investment opportunity for countries such as South Africa."

Gupta added that India was currently sourcing large volumes of commodities, from commodity-rich countries such as South Africa. In fact, India has now become the largest importer of South Africa's coal.

The energy-hungry country also showed great interest in South Africa's coal technologies, and a $9-billion investment partnership with petrochemicals company Sasol for the implementation of its coal-to-liquids technology in India is already on the cards.

Further, Gupta said that India were able to provide the largest economy in sub Saharan Africa with "extremely" competitively priced products. He noted that the country had identified opportunities for investment in the pharmaceutical, healthcare, food processing, automobiles, components, biotechnology, information technology, telecommunications, infrastructure, roads and railways sectors.

To showcase the compelling business opportunities arising out of India's technological, design and engineering skills, the Indian government had arranged a four-day ‘India Show' in Johannesburg starting at the end of August.

Gupta said that this was an effort on behalf of the Indian government to promote trade and economic ties with South Africa. In June, South Africa's President Jacob Zuma embarked on his first State visit to India in an effort to boost trade and investment between the two countries.

Zuma was accompanied by one of the largest-ever business delegations of more than 200 members, and the maiden visit created a base for the relaunch of the India-South Africa Chief Executives Forum.

Gupta said that among all the other business opportunities that the ‘India Show' would provide, it would also constitute the first substantive meeting between high-profile CEOs of the two countries.

However, he added that the India Show would not just focus on trade between large corporates, but would also create a business platform for entrepreneurs, and small to medium-sized enterprises.

The two countries would further elaborate on the debate of free-trade between the economies, instigated by Zuma's visit. "We are considering the different options for preferential trade arrangements between our two countries that would be to the benefit of both parties.

"We are hoping that this Indian Show that we are hosting in South Africa showcasing 54 Indian companies, pared with Indian culture events and cuisine, will enthuse people in the public and private sectors to take part in the vast number of business opportunities that exist between the two countries," concluded Gupta.