India & SACU to Restart Trade Talks by August 2026

India and the five-member Southern African Customs Union (SACU) are poised to restart negotiations for a preferential trade agreement (PTA).

The two sides are expected to sign the terms of reference (ToRs) on August 12, 2026, initiating discussions aimed at bolstering bilateral commerce.

Setting the Stage for Renewed Dialogue

This development follows discussions between India’s Commerce and Industry Minister, Piyush Goyal, and South Africa’s Trade, Industry and Competition Minister, Parks Tau.

The meeting occurred on the sidelines of the BRICS trade and industry ministers’ gathering, where ministers addressed the swift conclusion of negotiations and strengthening trade ties.

Minister Goyal highlighted key areas for cooperation and discussion during the upcoming talks.

• Signing the Terms of Reference (ToRs)
• Concluding negotiations early
• Strengthening bilateral trade
• Exploring cooperation in critical minerals, pharmaceuticals, and manufacturing

Previous negotiations for a similar pact in 2008 encountered difficulties, primarily due to unresolved market access issues, leading to a standstill in talks.

Key Trade Dynamics with SACU Members

South Africa stands as India’s largest trading partner within the SACU bloc, yet bilateral trade with the nation experienced a notable decline recently.

• Bilateral trade with South Africa fell 13.55% to $15.56 billion in 2025-26 from $18 billion in 2024-25.
• India recorded a trade deficit of $1.55 billion with South Africa during this period.
• Trade with Botswana rose 21.26% to $614 million in 2025-26 from $506.33 million in 2024-25.
• India faced a trade deficit of $278.94 million with Botswana.
• Trade with Namibia increased 4.32% to $593 million in 2025-26 from $568.4 million in 2024-25.
• India achieved a trade surplus of $105.24 million with Namibia.
• Trade with Eswatini declined 54.6% to $23.69 million in 2025-26 from $52.18 million in 2024-25.
• Trade with Lesotho fell 25% to $8.47 million in 2025-26 from $11.28 million in 2024-25.

Specific Trade Commodities and Opportunities

India’s engagement with SACU members involves a diverse range of goods, reflecting distinct economic profiles within the union.

• India’s key exports (overall): Vehicles and components, pharmaceuticals, engineering goods, chemicals, textiles, rice, and gems and jewellery.
• Major imports (overall): Gold, coal, copper ore, phosphoric acid, manganese ore, and aluminium.

Focusing on individual nations, trade dynamics reveal specific areas of interest and potential growth.

• For Botswana, diamonds are the major commodity, with India identifying export opportunities in pharmaceuticals, medical devices, tyres, agricultural equipment, digital technology, and textiles.
• Namibia’s key mutual interest areas include mining (uranium, diamonds, copper, phosphates), pharmaceuticals, IT, renewable energy, and SMEs.
• With Eswatini and Lesotho, major Indian imports include iron and steel, oil and seeds, and fruits. Exports to these nations comprise pharmaceuticals, rubber, plastic, and machinery.

The renewed push for a preferential trade agreement aims to unlock further economic potential and deepen trade relations across these diverse sectors.