India and South Africa Chart New Course for Trade and Investment Cooperation

The JWGTI dialogue reinforced the importance of continued collaboration to realize the untapped potential in the India-South Africa economic corridor.

In a significant step toward reinforcing economic collaboration, India and South Africa convened the 2nd Session of the Joint Working Group on Trade and Investment (JWGTI) on April 22–23, 2025, in Pretoria, South Africa. The meeting, which brought together high-ranking officials from both governments, emphasized strategic engagement to deepen trade, address market access challenges, and facilitate mutual investments.

Held in a warm and productive atmosphere, the session served as a platform for both nations to engage in robust discussions across various sectors, identifying new frontiers for collaboration and reaffirming their commitment to a long-standing bilateral partnership rooted in shared democratic values and historical camaraderie.

Leadership and Delegation

The Joint Working Group was co-chaired by Mr. Malose Letsoalo, Chief Director of Bilateral Trade Relations, Department of Trade, Industry and Competition (DTIC), South Africa, and Ms. Priya Nair, Economic Adviser, Department of Commerce, Government of India.

India’s nine-member official delegation included representatives from:

• The High Commission of India in South Africa

• Department for Promotion of Industry and Internal Trade (DPIIT)

• Ministry of Agriculture and Farmers’ Welfare

Both delegations actively engaged in sessions that reflected the depth and scope of the India–South Africa economic relationship.

Comprehensive Agenda: From Market Access to Digital Finance

The dialogue focused on a wide spectrum of areas designed to unlock bilateral trade potential and address regulatory and procedural bottlenecks. Notable topics discussed included:

• Pharmaceutical Sector Cooperation: South Africa conveyed interest in recognizing the Indian Pharmacopoeia, potentially facilitating regulatory approvals for Indian pharmaceuticals and opening a smoother path for exports.

• Agricultural Trade: Key deliberations centered around resolving market access issues for Indian and South African agricultural products, which hold significant export potential in both countries.

• Revival of the India-South Africa CEO Forum: Both sides agreed to reinvigorate this high-level industry platform to foster deeper private-sector partnerships, enhance policy dialogue, and promote sector-specific cooperation.

• Jewelry Manufacturing and MSMEs: Focus was placed on skill development, investment promotion, and the integration of MSMEs into global value chains, especially in the jewelry and gemstone sectors.

• Digital Payment Infrastructure: Discussions on establishing a Local Currency Settlement System and exploring a unified payment linkage were welcomed by both sides as a forward-looking measure to ease financial transactions and reduce reliance on foreign currencies.

• India-SACU PTA Progress: The delegations also explored avenues for finalizing a Preferential Trade Agreement (PTA) between India and the Southern African Customs Union (SACU), which could serve as a gateway for Indian businesses into the broader southern African market.

Review of Bilateral Trade and Investment Ties

Both sides undertook a detailed review of their recent trade performance and investment exchanges. South Africa is India's largest trading partner in Africa, and bilateral trade between the two countries reached USD 19.25 billion in the financial year 2023–24. This robust trade engagement is built on complementary strengths—India's exports of pharmaceuticals, automobiles, engineering goods, and IT services align with South Africa’s exports of coal, gold, minerals, and raw materials.

On the investment front, Indian enterprises have injected over USD 1.3 billion into South Africa between April 2000 and September 2024. These investments are spread across critical sectors including:

• Pharmaceutical manufacturing

• Automotive assembly and component supply

• Banking and financial services

• Mining and mineral processing

• Information Technology and digital services

---

Strategic Takeaways and the Road Ahead

The JWGTI dialogue reinforced the importance of continued collaboration to realize the untapped potential in the India-South Africa economic corridor. As the world transitions into a post-pandemic economic landscape, both countries are aligning their strategies to become resilient, inclusive, and innovation-driven economies.

The commitment to people-to-people exchanges, capacity-building partnerships, and joint ventures was also emphasized as a foundation for sustainable cooperation. The creation of institutional mechanisms such as the CEO Forum and fast-track channels for business facilitation are expected to enhance investor confidence and ensure timely resolution of trade-related issues.

In addition to economic deliberations, the two sides agreed to promote cultural, educational, and technological cooperation—further reinforcing the multifaceted nature of India-South Africa relations.

With renewed momentum from the 2nd JWGTI session, India and South Africa are poised to redefine their economic partnership. The deliberations laid the groundwork for enhanced strategic alignment, improved regulatory cooperation, and an expanded trade and investment ecosystem—setting a precedent for future bilateral and regional engagements.