India seeks easier access for cars, pharma exports to South Africa-led trade bloc

India is seeking preferential access for exports of automobiles, auto components, pharmaceuticals and several other products to the South Africa-led Southern African Customs Union (SACU), as the two sides move towards negotiations for a Preferential Trade Agreement (PTA), sources said.

India and SACU are likely to sign the Terms of Reference (ToR) for negotiations on the proposed trade agreement on August 12 in New Delhi, according to sources.

The development comes as South Africa considers raising import duties on automobiles from India and China to 50% from the current 25%, a move that could have implications for Indian automobile exports to the region.

South Africa is the largest economy in SACU, accounting for about 91% of the bloc’s total output. The customs union also includes Botswana, Namibia, Lesotho and Eswatini.

Last week, Commerce and Industry Minister Piyush Goyal met South Africa’s Minister of Trade, Industry and Competition Parks Tau on the sidelines of the BRICS Trade and Industry Ministers’ Conference in Jaipur.

The two ministers discussed signing the ToR to pave the way for an early conclusion of trade negotiations, as well as greater cooperation in pharmaceuticals, manufacturing and critical minerals.

India exported goods worth $7.5 billion to SACU in FY26, while imports from the bloc stood at $9.2 billion.

India’s major exports to SACU included petroleum products worth $2.1 billion, automobiles worth $1.7 billion and pharmaceuticals worth $763 million, along with machinery and engineering goods.

Imports from SACU included gold worth $3 billion, coal and coke worth $2.8 billion, precious and semi-precious stones worth $887 million, minerals and ores worth $638 million, and copper worth $376 million.

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