The India-Brazil-South Africa (IBSA) trilateral cooperation represents the “new trade geography” in which each country can use its other two partners as gateways for intensifying intercontinental trade and investment links, Shri Kamal Nath, Union Minister of Commerce & Industry, said while addressing the first ever IBSA Business Summit organised jointly under the aegis of the IBSA Business Council by the CNI (National Confederation of Industries, Brazil), BUSA (Business Unity South Africa), Confederation of Indian Industry (CII), Federation of Indian Chamber of Commerce & Industry (FICCI) and Associated Chamber of Commerce & Industry (ASSOCHAM), in Brasilia on 13^th September. “While India can provide an excellent staging post for South Asia and South East Asia, Brazil can act as the hub for Latin America as a whole and South Africa can do likewise for the entire sub-Saharan Africa”, he said. 

Citing figures on the prospects of trade, Shri Kamal Nath said: “Intra-IBSA trade was only US $ 7.7 billion in 2005 representing less than 1.5% of total trade of the three countries.  None of the IBSA countries features as one of the ten most important trading partner of the other two countries.  IBSA countries can reinforce each others economic strength by creating a market of more than 1.2 billion, a combined GDP of 1.8 trillion dollars and trade of more than 600 billion dollars.  The intra-IBSA trade, however, has more than trebled in the decade 1994-04. The modest target of intra-IBSA trade of 10 billion dollars, set for 2007, appears to be eminently achievable”.  

The following possible areas for joint ventures / investment flows / technical cooperation were also flagged by Shri Kamal Nath:  India - Pharma (the fourth largest producer of medicines in the world), Bio-tech, Wind energy  (India has the fourth largest installed capacity in wind energy), Information Technology, Tourism, Entertainment and Animation Industries, Manufacture of Jewellery using precious and semi-precious stones and gold. Brazil - Tourism, Agriculture, Food Processing, Food Packaging, Renewable Energy including Hydel Power and Ethanol (62% of Brazil’s energy requirement is met from renewable sources, of which 10% is from ethanol- India has the largest area under sugarcane, though its ethanol cost is very high), Bio-Energy, Nuclear Energy etc. South Africa - Synthetic Fuel, Coal Gasification Technology, Nuclear Energy, Mining technology and machinery.

 Back