Johannesburg, Jan 11 (Agencies): India and South Africa on Tuesday agreed to enhance the bilateral trade to USD 15 billion by 2014.

India's Commerce and Industry Minister Anand Sharma held discussions with his South African counterpart Rob Davies here and discussed ways to further enhance the economic engagement.

"Both Ministers expressed satisfaction over the steady growth of bilateral trade which was expected to reach USD 10 billion (in the current fiscal). A new target of USD 15 billion by 2014 was mutually agreed upon," an official statement said.

Sharma and Davies also expressed satisfaction at the progress of the proposed preferential trade agreement between India and South African Customs Union, which is expected to conclude soon.

"India is now hoping for early conclusion of India–SACU Preferential Trade Agreement (PTA) ... this should provide an enormous boost to ongoing levels of bilateral trade, especially in products such as pharmaceuticals, machinery and automobiles," Sharma said.

While in a free trade agreement (FTA) two sides reduce or eliminate duties on maximum number of products they trade, in a PTA, countries signing the pact reduces tariffs for only certain products.

In PTA, the tariffs are not necessarily eliminated, but they are lower than countries not party to the agreement.

The Southern African Customs Union (SACU) consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland.

India's exports to South Africa comprises mineral fuels, automobiles, iron and steel, machinery and instruments, chemicals, pharmaceuticals, cotton yarn and fabrics.

The country's imports include gold, aluminum, phosphoric acid, coal, pulp and waste paper, precious stones, including diamonds.