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India and Southern Africa Revive Preferential Trade Talks
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India and Southern Africa Revive Preferential Trade Talks

By Reuters·Edited by Editor TO·

India and the five-member Southern African Customs Union have revived negotiations on a preferential trade agreement, potentially opening wider market access for both sides. SACU comprises South Africa, Botswana, Namibia, Lesotho and Eswatini, representing a market of about 65 million people. The proposed agreement would reduce tariffs on selected products rather than provide the broader commitments associated with a comprehensive free-trade deal. India is expected to seek reduced tariffs on automobiles, pharmaceuticals, machinery, textiles, electrical equipment, and chemicals, alongside more reliable access to critical minerals such as platinum-group metals, manganese, and copper. Automobiles and auto parts were already India’s second-largest export category to SACU after petroleum products. Meanwhile, bilateral trade between India and SACU totaled roughly $16.7 billion in the 2025–26 fiscal year, underscoring the benefits both sides stand to gain from an agreement.