India-South Africa India-South Africa 2019 | Page 7

T
he Red Fort Declaration forms the
backdrop of the Strategic Partnership
signed in March 1997 by the then
South African President Nelson Mandela and
Former Prime Minister of India HD Deve
Gowda at the Red Fort in Delhi. But, what
does the Red Fort signify? At the Red Fort,
on August 15, 1947, the past and the present
had coalesced to mark a newly independent
nation’s step towards the future. The signed
declaration contained the aspirations and
shared values of Afro-Asian solidarity which
have given rise to an enduring partnership.
India and South Africa share a rich
cultural and varied economic history with
bilateral relations going back to the 1860s.
Although strained for a long time due to
South Africa’s apartheid government, India
re-established trade and business ties in 1993
after the country ended its institutionalized
racial segregation. 2018 marked 25 years of
India and South Africa re-establishing their
economic and diplomatic relations.
South Africa’s future is increasingly tied up
with that of India. While trade and investment
between the two countries is intensifying,
they share long-standing historical ties and
both countries are important players in the
global South. As India emerges as a major
economic power, the need to understand
these links becomes ever more pressing.
Can the two countries enter balanced forms
of exchange?
A number of bilateral agreements have
been concluded between the two countries
since assumption of diplomatic relations in
1993 in diverse areas ranging from economic
and commercial cooperation, defence,
culture, health, human settlements, public
administration, science and technology and
education.
Commercial relations between the two
countries have also flourished since the
establishment of diplomatic relations. India
imports gold, steam coal, copper ores and
concentrates, aluminum ingots among others
from South Africa. India exports vehicles and
components thereof, transport equipment,
drugs and pharmaceuticals, engineering
goods, footwear, dyes and intermediates,
chemicals, textiles, rice, gems, and jewellery
to South Africa.
According to the IMF, India’s economy
is the sixth largest in the world and the
third largest in terms of purchasing power.
With a population of 1.25 billion people,
India’s infl uence on the global stage is well
established and growing. India’s long-term
economic prospects are promising due to
high savings and investment rates, a young
population and integration into the global
economy with the potential to become one of
the three largest economies in the world in the
next 20 years and the third largest consumer
economy by 2025. India’s overall economy
is ready for a big take off .
On the other hand, South Africa is going
through a rough patch with a growth rate that
any objective view would perceive gravely.
South Africa would have to focus on three
core areas in the attempt of improving its
economic prospects. These are emphasis on
investing in education, especially science,
technology and mathematics training; being
open to the exchange of talents with other
countries and opening up the economy as an
investment destination. India’s policy reforms
to encourage investment have resulted in
it becoming the top FDI destination in the
world. While South Africa is the largest
economy in Africa after Nigeria, it is still
relatively small when compared to India.
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