India and South Africa Target Deeper Cooperation in Critical Minerals, Pharmaceuticals and Manufacturing

India and South Africa have opened discussions on expanding economic cooperation in critical minerals, pharmaceuticals and manufacturing as the two major Global South economies seek to build more secure supply chains and convert their traditional political partnership into a stronger industrial relationship.

Union Commerce and Industry Minister Piyush Goyal held talks with South Africa’s Minister of Trade, Industry and Competition, Parks Tau, on the sidelines of the BRICS 2026 Trade Ministers’ Meeting in Jaipur on August 6.

The two ministers examined opportunities to strengthen bilateral trade and investment while also reviewing progress on the proposed Preferential Trade Agreement between India and the Southern African Customs Union, or SACU.

Goyal said the discussions covered the signing of the Terms of Reference for the India–SACU agreement, the early conclusion of negotiations and cooperation in strategically important sectors including critical minerals, pharmaceuticals and manufacturing.

The meeting indicates that India–South Africa economic engagement is gradually moving beyond conventional merchandise trade towards industrial partnerships involving mineral processing, pharmaceutical production, technology, investment and resilient supply chains.

Critical Minerals Move to the Centre of the Partnership

Critical minerals have emerged as one of the most important areas of potential cooperation between India and South Africa.

Modern industries depend on minerals used in electric vehicles, renewable-energy systems, batteries, semiconductors, telecommunications, aerospace, defence equipment and advanced manufacturing. The concentration of mining and processing capacity in a limited number of countries has made reliable access to these resources a strategic economic concern.

South Africa possesses substantial reserves and production capabilities in minerals such as platinum-group metals, manganese, vanadium and other resources required by modern industrial and clean-energy systems.

India, meanwhile, is expanding domestic manufacturing in electric mobility, renewable energy, electronics, defence, chemicals and advanced engineering. These sectors will require dependable supplies of mineral inputs as production grows.

The two countries therefore possess complementary strengths. South Africa can provide access to mineral resources and an established mining ecosystem, while India can contribute manufacturing capacity, processing technologies, investment, engineering expertise and a large industrial market.

However, future cooperation is unlikely to remain limited to the purchase and export of raw ore.

South Africa has repeatedly emphasised that foreign investment in its mineral sector should support local processing, industrialisation and employment rather than merely extracting and exporting unprocessed resources.

Parks Tau has argued that investment partnerships must be connected to industrial development and should help South Africa retain more value from its mineral wealth.

This creates an opportunity for Indian companies to participate in mineral beneficiation, refining, component production, battery materials, recycling and downstream manufacturing inside South Africa.

Such partnerships could provide India with more diversified supply chains while helping South Africa create skilled jobs and move higher in the global industrial value chain.

From Mineral Extraction to Manufacturing

The strategic importance of the August meeting lies in the inclusion of manufacturing alongside critical minerals.

A mineral partnership becomes economically more valuable when it is linked to the production of finished or intermediate goods. Rather than simply shipping mineral resources from South African mines to Indian factories, the two countries could develop integrated industrial chains involving processing, technology transfer, component manufacturing and joint investment.

Potential areas include catalytic systems using platinum-group metals, battery materials, electric-vehicle components, renewable-energy equipment, speciality alloys and industrial machinery.

South Africa has identified beneficiation-led investment in platinum-group metals, manganese and vanadium as a priority. Its government has also invited Indian companies to use South African Special Economic Zones as platforms for export-oriented manufacturing.

India’s engineering base and South Africa’s mineral resources could support joint manufacturing intended not only for their domestic markets but also for exports to the wider African continent and other global destinations.

South Africa’s position within the African Continental Free Trade Area gives Indian manufacturers potential access to an expanding continent-wide market. Indian investment in South African production facilities could therefore serve a broader regional strategy rather than a purely bilateral one.

Pharmaceuticals Offer Immediate Opportunities

Pharmaceuticals form another major pillar of the proposed cooperation.

India is an important global producer of generic medicines, vaccines, active pharmaceutical ingredients and affordable healthcare products. South Africa possesses one of Africa’s largest pharmaceutical markets and is working to expand domestic manufacturing and healthcare resilience.

The two countries could cooperate in pharmaceutical production, vaccine manufacturing, regulatory coordination, research, medical technology and the development of regional supply chains.

Affordable Indian medicines already hold considerable relevance for African public-health systems. A deeper partnership could go beyond exports by establishing manufacturing, packaging, testing and distribution facilities in South Africa.

Local production could improve the availability of essential medicines, reduce dependence on distant suppliers and strengthen Africa’s capacity to respond to health emergencies.

The pharmaceutical discussions also fit into a broader economic agenda developed during South African Deputy President Paul Mashatile’s visit to India in May and June 2026.

During that visit, both sides examined cooperation in pharmaceuticals, vaccine manufacturing, renewable energy, mining, infrastructure, information technology and automotive components. South Africa also sought deeper engagement with Indian pharmaceutical and technology companies in Hyderabad.

The latest ministerial meeting therefore appears to continue a sustained effort rather than beginning an entirely new conversation.

Reviving the India–SACU Trade Agreement

Goyal and Tau also discussed progress towards an India–SACU Preferential Trade Agreement.

SACU brings together South Africa, Botswana, Lesotho, Namibia and Eswatini in a common customs arrangement. A preferential agreement would reduce or modify tariffs on selected products traded between India and the five-member bloc.

Negotiations initially began in 2002, and five rounds were conducted before the process stalled after 2010. Discussions resumed in 2025 between India, the SACU Secretariat and Namibia, which was coordinating the negotiations on behalf of the customs union.

The proposed signing of Terms of Reference would establish the scope, procedures and negotiating framework for the renewed talks.

An eventual agreement could improve market access for Indian pharmaceuticals, machinery, automobiles, textiles, chemicals, engineering products and information-technology-enabled services.

South African and other SACU exporters could gain improved access to the Indian market for minerals, agricultural products, processed food, chemicals and selected manufactured goods.

The negotiations will nevertheless need to address sensitivities on both sides. South Africa and its regional partners are seeking to protect domestic industrialisation and employment, while India will need to safeguard vulnerable sectors and ensure that tariff concessions produce balanced commercial benefits.

A carefully structured agreement could support trade expansion while encouraging investment and industrial cooperation instead of functioning merely as a tariff-reduction exercise.

BRICS as a Platform for Economic Cooperation

The bilateral meeting took place during the BRICS 2026 Trade Ministers’ Meeting in Jaipur, hosted by India as part of its BRICS presidency.

The gathering focused on trade cooperation, innovation, resilient value chains and sustainable industrial growth among member countries.

BRICS provides India and South Africa with a platform to advance cooperation among emerging economies at a time when global trade is being affected by geopolitical competition, protectionism and supply-chain disruptions.

Both countries support a greater role for developing economies in international institutions and frequently coordinate through BRICS, the India-Brazil-South Africa Dialogue Forum, the G20 and the United Nations.

However, the future strength of the relationship will increasingly depend on translating political coordination into factories, mineral-processing facilities, research partnerships, investments and increased trade.

Critical minerals and pharmaceuticals are particularly suited to this objective because both sectors have strategic as well as commercial importance.

Supporting India’s Supply-Chain Security

For India, cooperation with South Africa can support efforts to diversify the sources of minerals and industrial inputs required for economic growth.

Dependence on a narrow group of overseas suppliers can expose domestic industries to price fluctuations, geopolitical pressure, export controls and logistical disruptions.

Partnerships with mineral-rich countries can help India create a broader and more resilient network of suppliers.

India’s approach is also likely to involve investment in overseas assets, long-term purchase arrangements, processing partnerships, recycling technologies and joint ventures rather than relying exclusively on spot-market purchases.

South Africa offers several advantages as a partner. It possesses an established mining industry, developed transport and financial systems, experience in mineral processing and a strong political relationship with India.

The presence of Indian businesses in South Africa provides an additional foundation for future investments.

Benefits for South Africa

South Africa is seeking investment capable of supporting industrialisation, employment and value addition.

Indian participation could bring capital, manufacturing technology, pharmaceutical expertise, engineering skills and access to large consumer and industrial markets.

Joint ventures could help South African firms enter Indian and Asian markets while allowing Indian companies to expand their presence in Africa.

South Africa has made clear that it wants its critical minerals to support green industrialisation, innovation and domestic manufacturing rather than remain primarily an export commodity.

A successful partnership must therefore create visible economic value inside South Africa through processing facilities, supplier development, training, technology transfer and employment.

This approach could also distinguish India from countries whose engagement with Africa has been criticised for concentrating mainly on resource extraction.

A Partnership with Strategic Potential

The August 6 talks represent an important step towards a more focused India–South Africa economic partnership.

Critical minerals can connect South African resources with India’s growing industrial demand. Pharmaceuticals can combine India’s cost-effective manufacturing capabilities with South Africa’s healthcare requirements and regional market access. Manufacturing cooperation can convert these sectoral strengths into jobs, technology and long-term investment.

The proposed India–SACU Preferential Trade Agreement could provide a wider commercial framework for this cooperation by improving market access and establishing clearer trade rules.

The immediate challenge will be turning ministerial discussions into defined projects, investment commitments, supply agreements and completed trade negotiations.

Progress will depend on regulatory coordination, commercially viable project structures, reliable infrastructure and agreement on how value will be shared between the partners.

Nevertheless, India and South Africa possess the resources, markets, industrial capabilities and political relationship required to build a substantial economic partnership.

By combining mineral security with beneficiation, pharmaceutical access with local production and trade expansion with industrial development, the two countries can create a model of Global South cooperation built around shared economic value rather than simple commodity exchange.

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References

DD News. “India, South Africa to Expand Cooperation in Critical Minerals, Pharmaceuticals: Piyush Goyal.” August 6, 2026.

Ministry of Commerce and Industry, Government of India. “Foreign Trade—Africa: India–Southern African Customs Union Preferential Trade Agreement.”

Government of South Africa. Statements and addresses concerning the South Africa–India Technology, Trade and Investment Roundtable, May–June 2026.

Department of Trade, Industry and Competition, South Africa. Statements on industrialisation-linked investment and critical-mineral value chains, 2026.

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