India – South Africa Relations

Historical Background India’s links with the struggle for freedom and justice in South Africa date back to the period during which Mahatma Gandhi started his Satyagraha movement in South Africa over a century ago. India was at the forefront of the international community in its support to the antiapartheid movement; it was the first country to sever trade relations with the apartheid Government (in 1946) and subsequently imposed a complete -- diplomatic, commercial, cultural and sports -- embargo on South Africa. India worked consistently to put the issue of apartheid on the agenda of the UN, NAM and other multilateral organizations and for the imposition of comprehensive international sanctions against South Africa. The ANC maintained a representative office in New Delhi from the 1960s onwards. 2. Following talks between the then South African Government and the ANC, India’s relations with South Africa were restored after a gap of over four decades with the opening of a Cultural Centre in Johannesburg in May 1993. Formal diplomatic and consular relations with South Africa were restored in November 1993 during the visit to India of the then South African Foreign Minister Pik Botha. A Consulate General was thereafter established in Johannesburg. The Indian High Commission in Pretoria was opened in May 1994, followed by the opening of the Consulate General in Durban the same month. Since Parliament in South Africa meets in Cape Town, a permanent office of the High Commission was opened there in 1996, which has been re-designated as Consulate General of India with effect from January 2011. In addition to its High Commission in Delhi, South Africa has a Consulate General in Mumbai. Political Relations Development of political relations since 1994 3. Against the background of India’s consistent support to the anti-apartheid struggle, there has been a steady consolidation of our close and friendly ties with South Africa, both bilaterally and through the trilateral IBSA Dialogue Forum. A number of bilateral agreements have been concluded between the two countries since the assumption of diplomatic relations in 1993 in diverse areas ranging from economic and commercial cooperation, defence, culture, heath, human settlements, public administration, science and technology and education. Recent High Level visits 4. Prime Minister of India Dr Manmohan Singh visited South Africa from 17-19th October 2011 to attend the IBSA summit held in Pretoria on 18th October 2011.PM’s official delegation included the External Affairs Minister Shri S.M. Krishna; the Commerce and Industry Minister Shri Anand Sharma; Principal Secretary to the Prime Minister Mr. Pulok Chatterjee; Secretary (W), MEA; and other senior officials. An IBSA Joint declaration called Tshwane Declaration was issued & an IBSA MOU on Diplomatic Academies was signed during the visit. Smt. Krishna Tirath, Minister of State for Women and Child Development (IC) also

visited South Africa to attend the Women’s Forum held in Durban held from 13-14 October 2011 in the run-up to the summit. President of South Africa, Mr. Jacob Zuma, accompanied by Mrs Nompumelelo Ntuli-Zuma, paid a State Visit to India from 02 to 05 June 2010. President Zuma’s delegation included 7 Cabinet Ministers [Ministers of International Relations and Cooperation, Defence, Public Enterprises, Trade & Industry, Agriculture, Forestry & Fisheries, Transport, and Communications]. Three MOUs/Agreements were signed during the visit: (i) MOU on 2 Cooperation in the Field of Agriculture and Allied Sectors, (ii) Air Services Agreement and (iii) MoU on cooperation between the Foreign Service Institute of India and the Diplomatic Academy of South Africa. A 200-member strong business delegation as well as senior officials accompanied President Zuma on his visit. President Zuma met President, Vice President and Prime Minister; MOS for External Affairs as well as Chairperson of UPA and Leader of the Opposition in the Lok Sabha called on him. Discussions reflected the fraternal warmth and affection as well as the strategic partnership that characterize bilateral relations. President Zuma and his delegation also met Indian business leaders in Mumbai on June 2, 2010. A Joint Declaration containing key understandings reached during the meetings was issued during the visit. 5. Recent Ministerial level visits includes that of Mr Anand Sharma, Union Minister for Commerce, Textiles & Industry from 7-9 January 2012 to attend ANC Centenary celebrations and hold bilateral meeting with Mr Rob Davies, Minister for Trade and Industry. Mr Anand Sharma, had also earlier visited South Africa [08th January, 2011 to 11th January, 2011] in connection with inauguration of MMTC office in Johannesburg and holding bilateral discussions with Mr Rob Davies, Minister of Trade and Industry. Shri Sharma also called on President Zuma, Deputy President Kgalema Motlanthe, Minister of International relations and Co-operation Ms Mashabane and Minister for Public Enterprises Malusi Gigaba. Earlier visit of Shri Sharma included visit [29 August-1 September 2010] for the ‘India Show’ which was inaugurated by President Zuma in the presence of CIM and the South African Minister of Trade and Industry. Other recent Ministerial visits from India include those by Mr Sriprakash Jaiswal, Minister of Coal [05th January, 2011 to 09th January, 2011] to hold discussions with Minister of Mineral Resources Ms Susan Shabangu, by Shri Vayalar Ravi [29th September to 5th October, 2010] to participate in the mini Pravasi Bhartiya Divas (PBD) Convention organized in Durban from 1-2 October,2010 and by Shri Jairam Ramesh, Minister of State for Environment and Forests to South Africa [25-26 April, 2010 to attend BASIC ministerial]. From South Africa, Mr. Geoff Doidge, SA Minister for Public Works and Mr. Gugwile Nkwinti, SA Minister for Rural Development to India [separate visits in April 2010], Ms Buyelwa P. Sonjica, Minister for Water and Environmental Affairs to India [January 2010 for BASIC ministerial], Mr. Pravin Gordhan, SA Finance Minister [to receive Pravasi Bharatiya Samman in January 2010] have visited India this year. Visits in 2009 include that of Ms. Maite Nkoana Mashabane, Minister for International Relations and Cooperation to India [official bilateral visit in November 2009] Mr. Rob Davies, SA Minister for Trade and Industry [for the mini-WTO Ministerial meeting in September 2009]. Mr. Anand Sharma, Minister of Commerce and Industry visited South Africa on a bilateral visit [August 2009]. 6. Earlier, Vice President Mr. M. Hamid Ansari visited South Africa [May 8-10, 2009] to attend the Inauguration of Mr. Jacob Zuma as President. SA President Mr.

Kgalema Motlanthe attended the III IBSA Summit in New Delhi on 15 October, 2008, his first visit abroad since becoming President of South Africa. President Smt. Pratibha Patil made a brief technical stop over in Cape Town in April 2008 en route India after a visit to Latin American countries. SA President Mr. Thabo Mbeki, accompanied by Foreign Minister Dr. Dlamini-Zuma visited India in April 2008 to participate in the India-Africa Forum Summit in New Delhi. Prime Minister Dr. Manmohan Singh led a high level delegation to South Africa to attend the 2nd IBSA Summit in October 2007. At the end of the Summit, the Tshwane IBSA Summit Declaration was issued on 17 October 2007. Seven trilateral MOUs/Agreements were also signed between India, South Africa and Brazil. Smt. Sonia Gandhi, Chairperson, UPA and Congress President, visited SA in August 2007 at the invitation of the Deputy President of South Africa. 7. Prime Minister Dr. Manmohan Singh paid an official visit to South Africa from September 30 to October 3, 2006, accompanied by Minister of Tourism Smt. Ambika Soni and MOS for External Affairs Mr Anand Sharma. The Tshwane Declaration was signed during the visit, reaffirming and deepening the strategic partnership between India and South Africa and laying down benchmarks in all areas of cooperation including trade & investment, health, science & technology, defence, culture and education. Two bilateral agreements were also signed during the visit – on cooperation in railways and education. Joint Commission and Foreign Office Consultations 8. The India-South Africa Joint Commission at the level of Foreign Ministers was set up in 1994 to identify areas of mutually beneficial cooperation. The 7th session of the JMC was held in Pretoria in February 2008. During the visit, three Agreements on Customs Cooperation, S&T and visa free travel for diplomatic and official passport holders were signed. India hosted the 8th session of the JMC in March, 2011 in New Delhi. EAM Shri S.M. Krishna headed the Indian delegation, while Minister Mashabane led the South African side. Four rounds of Foreign Office Consultations have also been held; the latest in Pretoria in May 2010. Secretary (West), MEA, Shri Vivek Katju headed the Indian delegation. IBSA & BRICS Initiative 9. On June 6, 2003, the Foreign Ministers of India, Brazil and South Africa met in Brasilia and agreed to set up a Dialogue Forum for regular consultations on such matters. Subsequently, in 2006, this was upgraded to Summit level; five Summits have been held so far, the last in Pretoria in October 2011. IBSA Trilateral Ministerial meeting was held in New Delhi in March 2011. 16 Sectoral Working Groups have been established in areas such as health, agriculture, education, human settlements, S&T and defence. South Africa has also been admitted as a member of the BRICS grouping and attended the BRICS meeting held in April 2011. Multilateral Cooperation 10. India and South Africa have a common approach on many global issues, including UNSC reform, the future of multilateralism, climate change, South-South

Cooperation and multilateral trade negotiations. This has led to fruitful cooperation in the UN, NAM, Commonwealth, IAEA, IOR-ARC, WTO, G-77, G-20 and NAASP. India has strongly supported the objectives of the New Partnership for Africa’s Development (NEPAD), which is headquartered in South Africa. A sum of US$ 200 million has been committed for this purpose to be utilized through credit lines, grants etc. Some major projects in Angola, Senegal and Mali have already been undertaken. Commercial & Economic Relations 11. Commercial relations have flourished since the establishment of diplomatic relations in 1993. On the trade front, value of bilateral trade has trebled from US$ 2.5 billion in 2003-2004 to US$ 7.5 billion in 2008-2009. During the visit of President Zuma to India, both sides agreed to work towards a target of USD 10 billion in bilateral trade by 2012. The trade target was revised to USD 15 billion by 2014 during the visit of Commerce and Industry Minister in January, 2011 to South Africa as the bilateral trade target was achieved in FY 2010-11. Recent bilateral trade figures are as follows:

Year 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11

EXPORT 1,526.87 2,241.61 2,660.75 1,980.28 2,058.50 3,985.02 IMPORT 2,471.80 2,470.14 3,605.35 5,513.58 5,674.50 7,140.55 TOTAL TRADE

3,998.67 4,711.75 6,266.10 7,493.87 7,732.99 11,125.57

Source: Ministry of Commerce in USD Million 12. There is substantial potential for trade growth between the two countries. Exports from India to South Africa include vehicles and components thereof, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, and gems and jewellery, etc. Import from South Africa to India include gold, steam coal, copper ores & concentrates, phosphoric acid, manganese ore, aluminum ingots & other minerals. 13. Major investors include Tata (automobiles, IT, hospitality, and ferrochrome plant), UB Group (breweries, hotels), Mahindra (automobiles) and a number of pharmaceutical companies, including Ranbaxy, CIPLA, etc as well as IT companies and some investments in the mining sector. There is also growing South African investments in India led by SAB Miller (breweries), ACSA (upgradation of Mumbai airport), SANLAM and Old Mutual (insurance), ALTECH (set top boxes), Adcock Ingram (pharmaceuticals), Rand Merchant Bank (banking). 14. An important initiative under negotiation is the India-SACU Preferential Trade Agreement. Five rounds of negotiations between SACU and India have been held so far, the last in Delhi in October 2010. Combined with the India-MERCOSUR and SACU-MERCOSUR PTAs, it is envisioned that this will eventually lead to a Free Trade Agreement between India, SACU and MERCOSUR (a large ’free trade

area of the South’). An Agreement for Reciprocal Promotion and Protection of Investments (BIPPA) is also under discussion. 15. Commercial interaction has been aided by an India-South Africa CEOs’ Forum. The Forum was re-launched in June 2010 during the visit of the SA President and met in August 2010 in South Africa. Mr. Ratan Tata on the Indian side and Mr. Patrice Motsepe, CEO of African Rainbow Minerals on the South African side, chair the Forum. A meeting of the CEOs forum was held recently in New Delhi in August 2011.Minister of Trade & Investment of South Africa Mr Rob Davies attended the CEOs forum meeting. An India Business Forum (IBF) was launched in March 2007 in South Africa to bring together heads of all Indian companies in SA and provide a platform for promoting Brand India as well as to take up issues of common concern. IBF currently includes over 40 companies and is managed by Confederation of Indian Industry (CII). 16. The presence of Indian banks (State Bank of India, Bank of Baroda, Bank of India, EXIM Bank and ICICI Bank) has also promoted economic interaction. Resident offices in South Africa of GOI Tourist Office and National Small Industries’ Corporation are also active in promoting cooperation. The International Marketing Council (IMC) of South Africa has an office in Mumbai. The IMC, which works directly under the Presidency, has the mandate of promoting South Africa as a brand in foreign countries. ITEC Programme 17. India’s Technical and Economic Cooperation Programme (ITEC) has been a useful medium of promoting cooperation in development of human resources. South Africa has utilized about 500 ITEC slots for training since 2000. Due to increase in utilization, the number of slots allocated to South Africa was increased from 55 to 100 in 2006 during Prime Minister’s visit in October 2006 and subsequently to 110 in 2008. In FY 2011-12, under ITEC 108 slots have been allocated to South Africa, which was increased to 150 due to increase in utilization. India also offers specialized courses under the India-Africa forum summit to African countries, including South Africa. Education 18. In the field of higher education, a number of South African universities have established links with counterpart institutions in India. Several Vice Chancellors of prominent South African universities have visited India recently and MOUs on cooperation have been signed. A Centre of Indian Studies in Africa (CISA) was launched in September 2008 at the University of the Witwatersrand, the first ‘India focus’ centre in Africa. A Gandhi-Luthuli Chair of Peace Studies was also launched in September 2008 in the University of KwaZulu Natal. Universities such as UNISA, University of Pretoria, UCT, Western Cape and Rhodes are intensifying academic links with India. There is an institutionalized arrangement for a South African academic to occupy the Nelson Mandela Chair funded by ICCR at the Jawaharlal Nehru University in Delhi. An MOU on the establishment of Ayurveda Chair between the Central Council for Research in Ayurvedic Sciences and Durban University of Technology was signed in September 2011.

Defence 19. A Defence Cooperation Agreement was signed in September 2000. It has provided the framework for further strengthening cooperation in this sector. The Sixth meeting of the bilateral Joint Defence Committee was held in India in March 2008. Tourism 20. Tourism between South Africa and India has shown an upward trend. In 2010, 71587 Indian tourists visited South Africa while approx 54000 South African tourists visited India. Culture 21. With the help of the Indian Council for Cultural Relations (ICCR), an intensive programme of cultural exchanges is organised throughout South Africa including scholarships for South African nationals. In addition to such cultural programming, a ‘Shared Histories’ Festival organized as a public-private partnership is also held, which held its fourth edition in 2010. The Fifth edition of the ‘Shared Histories’ Festival was underway in September 2011. The SA Minister of Arts & Culture Mr. Pallo Jordan visited India in December 2007 during which he also inaugurated a major South African art exhibition. Mrs. Ambika Soni, Minister for Tourism and Culture visited South Africa in August 2008 and signed the Programme of Cooperation (POC) in Arts and Culture for 2008-2011. A Festival of India in South Africa was jointly organized by Department of Arts and Culture South Africa and High Commission in Pretoria from June-August 2011 & A Festival of South Africa in India is scheduled to be organized in 2011-12 under the POC. Indian Community 22. The major part of the Indian origin community came to South Africa from 1860 onwards as farm labour to serve as field hands and mill operatives in the sugar and other agricultural plantations of Natal (which was then a British colony). Most of these initial migrants were from Tamil Nadu and Andhra Pradesh with some from eastern UP and Bihar. A second wave of Indians came after 1880. These were the “passenger Indians” – so-called because they paid their fares as passengers on board a steamship bound for South Africa. This was the community of traders who mainly hailed from Gujarat. 23. Today, the South African Indian origin community numbers around 1.5 million and constitutes about 3% of South Africa’s total population. About 80% of the Indian community lives in the province of KwaZulu Natal, about 15% in the Gauteng (previously Transvaal) area and the remaining 5% in Cape Town. South Africans of Indian origin are well-represented in Government, business, media, legal and other professions. The year 2010 marked the 150th anniversary of the first arrival of Indians in South Africa. March 2012