Zuma seeks to boost India trade

Mumbai - President Jacob Zuma, in India on his first state visit to Asia since taking office, was due to meet business leaders Thursday in Mumbai in a bid to boost trade ties.

Zuma, who arrived in India on Wednesday, was to jointly launch a bilateral trade forum with India's commerce and industry minister Anand Sharma and address captains of industry.

The 68-year-old president is accompanied by a 200-strong business delegation as well as key ministers.

India's trade with South Africa hit $7.5bn in 2008-2009, the government in New Delhi said.

"Trade statistics with India continue to reflect the potential that still exists for expanding the commercial relationship," Zuma's office said in a statement.

The two countries also have historic political and cultural links.

In a speech on Wednesday, Zuma paid tribute to the positive contribution of Indian immigrants to the development of South Africa since the mid-19th century.

Zuma's visit comes amid reports that Indian cellphone group Reliance Communications is eyeing a possible merger with South Africa's MTN, Africa's largest cellular firm.

The Economic Times newspaper said Reliance is looking to generate equity to fund its move into the third-generation cellphone market, licences for which were sold last week at a government auction.

Another possibility is Reliance accepting a bid for a strategic stake from United Arab Emirates-based Etisalat, the financial daily said, quoting an unnamed source said to be familiar with the group's plans.

Zuma is due in New Delhi on Friday for talks with Prime Minister Manmohan Singh and other leaders, and will be guest of honour at a banquet hosted by his Indian counterpart Prathibha Patil.

Besides trade, also on the agenda is reform of the United Nations Security Council, plus closer cooperation on climate change and the global economy, officials said.

 - Sapa