SA Wants India to Lower 30% Import Tariff on Wine.

MUMBAI — SA’s consul-general to India, Busi Kuzwayo yesterday called on the Indian government to lower its double-digit import tariff on South African wines.

India had imposed a 30% import duty on wines imported from SA, Ms Kuzwayo said.

She claimed the import duty adversely affected South African businesses that wanted to supply premium wines to India’s growing middle-class community.

Wine is an emerging market in India, and Indian wines are not the best of wines as India’s commercial viticulture industry was less than 20 years old, she said.

SA, on the other hand, has a well- established wine industry and exports to a number of countries including Europe and the US.

India’s economy is projected to grow by up to 8,5% by the end of this year and peak at 9% in 2012, making it one of the fastest-growing economies in the world.

Through the Southern African Customs Union (Sacu), SA is in discussions with India regarding a preferential trade agreement between the two regions, which aims to reduce trade tariffs by 2012.

India’s Commerce and Trade Minister Anand Sharma was in SA last month to meet with his counterpart Trade and Industry Minister Rob Davies to finalise the details of a preferential trade agreement. Mr Sharma said that a reciprocal trade agreement would push two-way trade between India and Sacu members to 10bn by 2012.

Ms Khuzwayo also urged SA’s business community to make use of the services of the consulate before committing into any business transactions in foreign countries.

“We always encourage companies to come through us (first) … and not only come to us when they have burnt their fingers,” she said .

Ms Khuzwayo said that there were also many other investment opportunities for South African companies in India . She singled out the financial services industry as a possible investment for South African companies as India has a robust savings culture .

Ashishkumar Chauhan, deputy CE of the Bombay Stock Exchange, said India’s savings rate is almost 35% of gross domestic product, making it one of the highest saving rates in the world. FirstRand is the only South African bank so far that has entered the financial services market in India.

Source : businessday.co.za