“It is moving slightly slower, but there should be some clarity soon,” the person said, requesting anonymity, as the discussions are private. “Talks may be launched by year-end,” the person added.
An email sent to the Ministry of Commerce seeking comments did not elicit an immediate response.
India signed the ToR for the deal with the five-nation bloc — comprising South Africa, Namibia, Botswana, Lesotho, and Eswatini — in August. The two sides aim to conclude the pact within a year, according to the ToR.
Discussions on a trade agreement with SACU come at a time when African economies have increasingly featured among India’s important export destinations. Within SACU, South Africa has ranked among India’s top 10 export destinations in each of the past six months of the current financial year (2026-27). It is also by far India’s largest trading partner within the bloc, accounting for nearly 93 per cent of India’s total trade with SACU in 2025-26.
Both sides have decided to begin with a PTA focused initially on merchandise trade to maintain flexibility.
India and SACU are both developing economies, with overlapping interests in some sectors and potential complementarities in others. A narrower agreement could allow both sides to test the commercial potential of deeper integration without immediately exposing sensitive sectors to sweeping tariff concessions.
The proposed trade agreement with SACU is part of the Department of Commerce’s broader trade diversification agenda, which has gained importance amid geopolitical uncertainties.
According to experts, the strategic case for deeper engagement with the region also extends to India’s broader diplomatic alignment with African economies. India and South Africa, in particular, have often found common ground at the World Trade Organization (WTO), where both have advocated for the interests of developing economies and defended the multilateral trading system.
“Both the economies have been on the same page on several discourses at the WTO. South Africa and India maintain a powerful, active alliance at the WTO, consistently joining forces to champion the interests of developing nations, defend multilateralism, and push back against wealthy economies,” Global Trade Research Initiative founder Ajay Srivastava said.
This is not the first time India and SACU have attempted to negotiate a trade agreement. The two sides began negotiations in the first decade of the millennium, but talks eventually stalled after five rounds amid disagreements over market access, rules of origin, and the varying levels of development among SACU members.
