India and South Africa forging dynamic and vibrant economic cooperation

By Kirtan Bhana - TDS

19 March 2025 

“South Africa is our second home,” said Mr Rajesh Gupta, CEO of Mahindra South Africa. He was speaking as a panellist on the automotive sector discussions of The India-South Africa Business Conclave for 2025. The Conclave hosted by the High Commission of India to South Africa set out a detailed agenda with speakers and experts from key sectors that have already established operations and are looking to grow, as well as with sectors that have much potential and many commercial opportunities.

Considering the immense differences in demography and diversity of the two countries, the growing commercial engagements between them is both heartening and encouraging. India has been a consistent supporter of South Africa’s economic transition over the past 30 years, India’s headstart and its own difficult transition from colonialism hold many lessons for South Africans. Enduring through the uncertainty and volatility of political and economic transformation is just beginning to show positive sustainable signs of growth as the vestiges of an outdated, unfair and anti-competitive economic structure begin to crumble, and a new inclusive, productive and equitable process and structure emerges.

Since India and South Africa normalised ties in the mid 90’s there has been a continuous upward movement in the interactions and engagements in every sphere of relations, and discourses like this Business Conclave are instrumental in keeping the momentum going.

Business and commerce, especially in this new era of instant communication and digital transacting, has spurred innovation and entrepreneurship. New bold and unique products and services have spurred innovative and distinctive enterprises that are especially relevant to the youthful demographic of Africa and India where majority of the population are 30 years of age and under.

As the old colonial imperial order stagnates due to complacency, countries like India and South Africa are poised to emerge strongly. The current target of US$ 20 billion in trade between the two countries is in sight as India’s growth of around 6,5%, the highest among its peers, will play a key factor.

The proximity of the countries who are founding members of the expanded BRICS and the Indian Ocean Rim Association (IORA) present many opportunities for marine and maritime cooperation. The countries also share a common history that has intertwined their destiny. Both were colonized by the English and have English as a common language and similar electoral, judicial and governance systems which support a free market that simplify commerce and trade.

Mahindra and Mahindra India’s automotive company has been steadily growing its South African footprint. The company has reported an impressive 37,4% growth in new passenger and light commercial sales in the last quarter of 2024. For the launch of the XUV 3XO, its latest model, and marking its 20th year of operations in South Africa, Mahindra SA hosted a spectacular ‘Fusion Fest’ of music, dance, visual arts, fashion and acrobatics, featuring renowned South African artists and performers.

The panel on Defence Businesses was Moderated by Ricardo Teixeira- Protection Web, and included Captain Atul Sapahia Inidian Defence Attache, Rear Adm (Ret) R Higgs and Mr Justice Tootla - Denel and Nivan Moodley VP SAAB (photo: TDS)

 

The movement of people is just as important, and may even be more critical than the movement of goods and services. The importance of a direct flight between Johannesburg and Mumbai and Delhi will unlock the latent potential between the two nations. This in conjunction with easing the visa regime will completely transform the dynamics of the economic cooperation. “Around 50% of the current travel between South Africa and India is business travel, explained Mr Ashish Sharma, CEO of 24 by Seven Travel & Tours.” He was speaking of the untapped travel, tourism and hospitality potential that exists between not only the two countries, but between Asia and Africa.

Considering the devastation of occupation and colonialism the Indian Sub-Continent had to endure for centuries, and tackling the resultant underdevelopment and extreme poverty, it is truly remarkable, that this country of 1,5 billion people has grown into a net exporter of food. The reforms in its agricultural agro-processing and food sector has lifted many people out of abject poverty. Indian food is renowned throughout the world for its savoury and spicy flavours, vegetarian and vegan options, and it sweet desserts.

The High Commission in Pretoria as well as the Consulate Generals in Johannesburg, Cape Town and Durban have made firm commitments to further developing and strengthening economic and commercial exchanges. Naspers, Sanlam and SABMiller are some of the recognizable South African companies that have invested in India and have set up operations there. Consistency and perseverance of an age old historic link and deep people-to-people connections between Indians and South Africans are starting to bear fruit. The collaboration in multiple spheres are showing positive signs of growth and presenting optimism of a dynamic and vibrant future.