South Africa holds great economic significance not only for the continent of Africa but also for the world. It is the largest economy in Africa and has a large and diversified industrial base. The country is also endowed with vast mineral and natural resources and is also projected as a gateway to the Sub-Saharan African market. The South African economy has been able to recover to its pre-pandemic level growth. The growth has been fuelled by increased government spending on infrastructure and electricity. While the recovery has not been up to the level as was expected, the country is surely following a growth path.

The below figure indicates the Real GDP growth rate of South Africa in the last five years:

South Africa is an important trading partner for India. Both the countries have cooperated with each other in a number of forums, most importantly BRICS

During FY 2024-25, India's total merchandise exports to South Africa remained at USD 7.46 billion. During the same time, India's engineering exports to South Africa stood at USD 2.51 billion. While in Y-o-Y terms, India's total merchandise exports declined by 14.3% in FY 2024-25, its engineering exports to South Africa rose by 14.83% indicating the importance of the South African market.

In electrical machinery, India's exports to South Africa in FY 2024-25 stood at USD 183.86 million with an increase of 76.6% over same period last year.