South Africa is the economic powerhouse of Africa with a Gross Domestic Product (GDP) four times that of its Southern African neighbours and comprising around 25% of the entire continent's GDP. The country leads the continent in industrial output (40% of the total output) and mineral production (45%) and generates most of Africa's electricity (over 50%). Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, strong growth potential in the tourism, high value-added manufacturing and service industries. The financial and industrial sectors are concentrated in Gauteng Province which on its on accounts for over 30% of the country (GDP).

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.