Since 1994 India-South Africa relation has shown smooth development with signing of a number of bilateral agreements in diverse areas ranging from Defence, Culture, Science and economic cooperation.
Total trade between the two countries has grown significantly since 2001 with surge in both export and import, but India has remained a net Importer. But in the engineering sector, India’s export to South Africa has maintained a steady growth 89.5% in 2005-06 and 94% in 2004-05 on year on year basis.
Potential growth areas for Indian exports to South Africa are – Vehicle and vehicle components, Transport equipments, Castings, Forgings, Hand Tools, Agricultural equipments, Two wheelers etc. There are also good potential for exports in the service industry like Software expertise, technical man-power training.
Indian investments in South Africa have grown significantly both in quantity as well as diversity. Major investors includes UB Group of India, Tatas, Mahindras, Ranbaxy, Cipla, Godrej, Ashok Leyland etc.