India, SACU group may ink terms of reference for negotiating trade pact on August 12
India and South Africa-led SACU group are likely to sign Terms of References (ToRs) on August 12 for starting negotiations for a preferential trade agreement (PTA), an official said. The five members of SACU (South African Customs Union) are Botswana, Eswatini (formerly Swaziland), Lesotho, Namibia and South Africa.
On the sidelines of the BRICS trade and industry ministers’ meeting, Commerce and Industry Minister Piyush Goyal met Parks Tau, Minister of Trade, Industry and Competition of South Africa.
“We discussed the signing of ToRs for India-SACU PTA and early conclusion of negotiations, strengthening the India-South Africa trade engagement and explored opportunities for cooperation in the critical minerals, pharmaceuticals and manufacturing sectors,” he said in a social media post.
The ToRs may be signed on August 12, the official said. Under such pacts, two trading partners provide duty concessions to each other on goods to boost two-way commerce.
In 2008, the two sides held negotiations for a proposed pact, but the talks were stuck due to market access issues.
INDIA-SACU TRADE
In the group, South Africa is the largest trading partner of India. The bilateral trade between the two countries dipped by 13.55 per cent to $15.56 billion (exports $7 billion and imports 8.56 billion) in 2025-26 from $18 billion in 2024-25. India had a trade deficit of $1.55 billion in the last fiscal.
Major Indian exports to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals, textiles, rice, and gems and jewellery.
India mainly imports gold, steam coal, copper ores and concentrates, phosphoric acid, manganese ore, aluminium ingots and other minerals from that country.
India’s trade with Botswana rose by 21.26 per cent to $614 million (exports $167.53 million and imports 446.47 million) in 2025-26 from $506.33 million in 2024-25. India has a trade deficit of $278.94 million in the last fiscal.
Diamonds are the major trading commodity between the countries. Botswana exports rough diamonds to India, while India’s exports include a mix of pharmaceuticals, machinery, iron and steel, electrical equipment, in addition to precious stones such as diamonds.
India has opportunities to expand exports in pharma, medical devices, tyres, agricultural equipment, digital technology, and textiles.
India’s trade with Namibia rose by 4.32 per cent to $593 million (exports $349 million and imports 244 million) in 2025-26 from $568.4 million in 2024-25.
India has a trade surplus of $105.24 million in the last fiscal. The mining sector is an area of mutual interest. Namibia is rich in uranium, diamonds, copper, phosphates and other minerals.
Indian expertise in IT, pharmaceuticals, renewables and SMEs is of interest to the Southern African nation.
About 30 diamond cutting and polishing businesses operate in Botswana, with the majority of them owned by Indian diamond companies as part of their multinational operations.
India’s trade with Eswatini declined by 54.6 per cent to $23.69 million (exports $11.81 million and imports $11.89 million) in 2025-25 from $52.18 million in 2024-25.
Major Indian imports include iron and steel, oil and seeds, and fruits, while exports include pharmaceuticals, rubber, plastic and machinery.
The country’s two-way trade with Lesotho declined by 25 per cent to $8.47 million (exports $8.33 million and imports $0.14 million) in 2025-25 from $11.28 million in 2024-25.
Major Indian imports include iron and steel, oil and seeds, and fruits, while exports include pharmaceuticals, rubber, plastic and machinery.
