India Deepens Trade Ties with Southern Africa as Global South Economic Engagement Expands
New Delhi | August 13, 2026 | The Global Journal
India is taking steps to further strengthen its economic and trade relations with countries of the Global South. As part of the initiative, New Delhi has agreed to resume negotiations with the Southern African Customs Union (SACU) on a preferential trade agreement.
If implemented, the proposed agreement could provide Indian exporters with greater access to a market of approximately 65 million people. It could also create opportunities to reduce tariffs on goods and expand market access between the two sides.
Potential Tariff Cuts on Automobiles, Pharmaceuticals and Machinery
Under the proposed trade framework, tariff reductions could be discussed for automobiles, pharmaceuticals, machinery, chemicals and textiles, among other products.
Demand for Indian pharmaceuticals, engineering goods and industrial products is growing in African markets. Lower tariffs could further improve the competitiveness of Indian exporters in these sectors.
India Seeks Reliable Access to Critical Minerals
Securing supplies of critical minerals is another key priority for India. Minerals such as platinum, manganese and copper are important for manufacturing, technology and the energy transition.
Deeper trade relations with the SACU region could create new opportunities for India to secure supplies of these critical minerals while developing more reliable, long-term supply chains.
India–SACU Trade Reaches $16.7 Billion
India's total trade with the SACU region stood at $16.7 billion in the 2025–26 fiscal year. India exported goods worth $7.5 billion and imported goods worth $9.2 billion from the region.
Reducing the trade imbalance, expanding market access and diversifying the range of traded goods could therefore become important issues in future negotiations.
Africa's Role in India's Global South Strategy
The trade negotiations with SACU are also being viewed as part of India's broader Global South diplomacy. New Delhi is seeking to strengthen trade, investment, technology and critical-mineral cooperation with African countries while enhancing its position in global supply chains.
However, although the decision to resume negotiations has been taken, the full structure of the proposed agreement, product coverage and specific tariff-reduction rates have yet to be finalized.
If eventually implemented, the agreement could boost trade and investment between India and Southern Africa while further expanding India's economic partnerships across the Global South.
