Strengthening Economic Ties: India and South Africa Discuss Trade Innovations

India and South Africa explore local currency trade settlement and unified payment linkage to boost economic relations. Discussions on a preferential trade agreement and strategic cooperation were held at the Joint Working Group on Trade and Investment meeting in Pretoria, focusing on various sectors including pharmaceuticals and IT.

In a bid to enhance economic ties, India and South Africa are exploring the possibility of local currency trade settlement and a unified payment linkage system. The commerce ministry highlighted these discussions on Thursday, emphasizing their potential to bolster bilateral trade relations.

The recent Joint Working Group on Trade and Investment meeting in Pretoria saw the two nations delve into various strategic economic issues, including a proposed India-SACU preferential trade agreement. The meeting also revisited ideas for reviving the CEO Forum and discussed cooperation in investment and market access challenges in agriculture.

South Africa remains India's largest trading partner in Africa, with a bilateral trade volume of USD 19.25 billion in 2023-24. Moreover, Indian enterprises have significantly invested over USD 1.3 billion in South Africa, spanning sectors such as pharmaceuticals, IT, automotive, banking, and mining.

(With inputs from agencies.)