The global economy is being reshaped, and countries everywhere are building new trade, investment and supply routes to diversify their partnerships and secure the inputs that will power future growth. South Africa and India are unusually well placed to build one of those routes together. On 12 August 2026, India and the Southern African Customs Union signed Terms of Reference in New Delhi to begin negotiating a preferential trade agreement; a practical step toward lowering tariffs and widening market access on both sides 1 . South Africa brings more than its own market to that table: as the anchor economy of SACU, alongside Botswana, Lesotho, Eswatini and Namibia, it offers India a single set of trading rules across a larger common market.
The numbers show real momentum. Bilateral trade has grown from roughly $8 billion to $18 billion in recent years, and both governments have set a target of $40 billion within the decade 2,3 . Today, coal, precious metals and mineral fuels lead South Africa’s exports to India, while India sends back refined fuel, vehicles and pharmaceuticals. Building a more industrial partnership on top of this strong trading base is the natural next step.
The complementarity is striking. South Africa holds the world’s largest reserves of platinum group metals and among the largest of manganese and chrome; inputs at the centre of the clean energy, electric vehicle and hydrogen supply chains every major economy is now racing to secure. India has built a globally significant scale in generics and pharmaceutical manufacturing, digital public infrastructure, and large-scale project execution. Each economy holds a piece of what the other needs, which is a rare and durable basis for trade.
