Federation of Indian Chambers of Commerce and Industry (FICCI) has stated that trade between India and South Africa is likely to double to around USD 12 billion by next three years (2010), on higher volumes in the pharma segment.
FICCI that the existing trade engagement doesn’t mull over the true prospective, but added up that even the trade in pharmaceutical division was overwhelmed with troubles regarding registration of products and weighty process.
FICCI is sending a delegation chaired by Khorakiwala to take part in the IBSA (India, Brazil, South Africa) business meeting to be held from October 15 to 17 in South Africa.
Calling for urgent resolution over these matters, FICCI President Habil Khorakiwala said that there was huge scope for group action, JVS and combined marketing across different drugs and pharma sections including clinical examinations and contract research in manufacturing.
The chamber said that South Africa’s pharma market is the biggest in Africa and the existing size of the market is projected at around two billion dollar.
There are various big companies exporting generic pharmaceutical products to South Africa. The majority of them have established their offices there. Lots of companies such as Ranbaxy, Workhardt, Cipla and Dr Reddy’s Lab etc have signed up joint venture contracts with South African companies, it said.
Both the states benefit from a number of complementarities such as diversified population, abundant labour supply and mineral wealth. Whilst South Africa is the main producer of gold and platinum and a top producer of coal, India is a leading producer of iron ore, coal and several other minerals, it added.