South Africa and India already have a solid framework for strong relations, not least in the areas of trade and investment, Indian high commissioner to South Africa (Ms) Ruchira Kamboj tells Engineering News. “India and South Africa are old friends and historical partners,” she highlights. “Don’t forget we are Brics (Brazil, Russia, India, China, and South Africa) countries, members of Ibsa (India, Brazil, South Africa), and we are both members of the Commonwealth. And we are both countries of the Global South.”

Bilateral trade between India and South Africa currently stands at about $10-billion (coincidently, about the same value as current bilateral investment). More than 150 Indian companies have invested in South Africa, employing more than 20 000 South Africans (quite apart from these enterprises’ many and varied corporate social responsibility programmes). These investors include some of India’s biggest and best known groups, such as Tata, Mahindra, Vedanta and Motherson Sumi.

In 2016, the two countries set a target of doubling bilateral trade and investment to $20-billion by 2021. “Given the framework of our relationship, and that we’re members of both Brics and Ibsa, it’s natural that our relations should grow,” she noted. (Ibsa still functions, with regular meetings at Foreign Minister level.)

“This time is the best time, for we have a New India and a New South Africa,” she affirmed. “In 2018, so far, 14 Indian Cabinet Ministers have visited South Africa, including Prime Minister Modi (for the Brics Summit). We believe that this high-level engagement will continue. It sends the right signal to business and especially investors.”

This year has also seen, in the defence sector, the breaking of the long-running logjam regarding South African State-owned defence industrial group Denel. There are no administrative restrictions on Denel, which is now free to do business with the Indian government and Indian companies.

“[The year] 2018 has been a good year for India-South Africa relations,” she reports. “This year is the 25th anniversary of the restoration of Indian-South African relations, the 100th birthday of President Nelson Mandela and the 150th birthday celebrations of Mahatma Gandhi.”

“What I’d really like to see would be a direct flight between South Africa and India,” observes Kamboj. “That would be an immediate stimulus to trade and tourism. That should be a short-term deliverable for both countries. Currently, you have to fly via Dubai or Addis Ababa, which is circuitous and time consuming and certainly does not boost trade and tourism.”

In her address to the recent Invest in India Business Forum, she highlighted that India had attracted $44.9-billion in foreign direct investment during the 2017/18 financial year. “Why India? Because it’s the new India,” she explained. “A country that is on the move . . . Our country today is on a very high growth path.” India is now the fastest-growing major economy in the world.

This has all been made possible by major reforms that have made it much easier to do business in the Asian giant. Complex procedures have been simplified. The bureaucracy has changed its mindset, she pointed out, from being a regulator to being a facilitator. In India, it used to take 26 days to incorporate a company; now it takes only one day. These reforms were driven by strong political will.

“This is the new India, where it is very easy to do business,” she affirmed. The country now has a specialised foreign investment promotion and facilitation agency, Invest India, which has won international recognition and awards. Invest India provides support for investors from the very start of the investment process to its completion.

It also makes a lot of sense for foreign investors to link up with local partners. India is an incredibly diverse country and local partners bring local expertise. “I would always say: Go with a partner,” she advised.

“Labour in India is very productive and very cheap,” observed Kamboj. “They are willing to work six days a week.

“We have fairly good infrastructure now,” she added. A number of the country’s states (India is a federation) have been emulating the reform initiatives of the central (federal) government. They have been simplifying their state regulations and investing in infrastructure. “The states are supporting the centre.”

“It is very easy now to do investments,” she stressed. “This is the right time, with the new climate.”

With regard to bilateral investments between India and South Africa, this now totalled about $10-billion, Indian deputy high commissioner Dr S Janakiraman pointed out at the same event. But, of this, Indian investment in South Africa accounted for some $9-billion and only about $1-billion represented South African investment in India. Hence, India’s desire to encourage South African investment into the Asian country is clear.