India-Mozambique trade could double by 2016: Anand Sharma

Trade between India and Mozambique could double to $3 billion by 2016 from the current level of $1.28 billion.

This was stated by Commerce Minister Anand Sharma during his meeting with Mozambique's Industry and Trade Minister Armando Inroga in the Mozambique capital Maputo, a commerce ministry release here said Monday.

Sharma was on a two-day visit to that country September 27-28 during which he also met Prime Minister Alberto Vaquina of Mozambique, the release said.

Sharma also addressed a session on "Enhancing Economic Partnership between India and Mozambique" along with the Mozambique trade minister. The session was attended by industry leaders from both countries, the statement said.

Bilateral trade has doubled from $631.76 million in 2011-12 to $1.28 billion in 2012-13, surpassing the one billion US dollars bilateral trade target set during Mozambique President Armando Guebuza's visit to India in 2010.

India has extended Lines of Credit (LoC) worth $640 million to Mozambique. Three LoCs worth $216.4 million for development work in Mozambique were signed during the visit of Minister of State for External Affairs Preneet Kaur in July.

India is the 8th largest foreign investor in Mozambique with total investments estimated at more than $500 million.

The state-run Oil and Natural Gas Corp and Oil India have recently acquired a 10 percent stake in the Area 1 oil block in northern Mozambique's Rovuma Basin at a cost of $2.5 billion and Indian public sector companies now hold a 20 percent interest in the Anadarko-led consortium operating the oil block.