Speaking at an SA-India business forum he said this failure does not mean SA is not supportive of deals.
The deal failed in October last year when the SA government did not approve it. But it emerges there were concerns around valuation as well as the need to ensure one of the largest telecoms companies on the African continent retained its brand and focus.
"In general, we want to support India and SA business that is mutually beneficial to both countries," said Davies.
He noted that when the proposed free trade agreement is signed there is a real possibility of striking deals that are often paid lip service in trade negotiations.
Head of India's Chamber of Commerce and Industry, Hari Bhartia said the proposed free trade agreement will remove certain barriers that do exist.
"It will really open up trade."
He said growth markets are Asia, Latin America and Africa, but they need to remove the trade barriers.
"The WTO is moving ahead, but we don't know in which direction it is going."
He noted that the recession EU and US resulted in a concern around protectionism, which is why Asia, India and Africa must open up, especially as they have similar constraints.
Davies said the ambition is to increase the proportion of value added products and this is where trade agreements are important.
It is not just about tariffs, but all technical barriers to trade.
He said the agreement must not be used to "smash our development" but be complementary to the various strengths the countries possess.
"An important development is in the conceptual relationship of trade relationships, where it is often uneven.
"If we can do it on a bilateral scale it will have an enormous lesson to teach the rest of the world," said Davies.
Today's SA-India CEO Forum prioritised the financial sector as a key sector to promote trade.
It is hoped development finance institutions can play a greater role, especially if partnering with private sector finance institutions as a little more risk can then be taken.
Business tycoon Ratan Tata said distance, freight rates, and lack of skilled labour were issues that could impede growth.
But he said getting connected with India can have "enormous scale", reaching people with products.
"India is very price sensitive." He saw SA as a key gateway to the rest of the continent.
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