India and South Africa are the two major emerging economies of the world with strong history of understanding. The trade volumes of bilateral trade between India and South Africa US$ 11.07 billion in 2019. Both countries are working to accelerate trade volumes in the coming years. Bilateral trade grew exponentially from US$ 3 million in 1992–1993 to $4 billion in 2005–2006. In 2016 the bilateral trade was US$ 9.3 billion and both countries set a target of doubling bilateral trade and investment to $20 billion by 2021. South Africa is the second largest economy on the African continent with a GDP of USD 350 billion. It is a diversified economy but mostly dependent on services (63%) and commodities, with industrial activity comprising 29% of GDP. The growth rate is less than 2% of South Africa in last three year. It grew by 1.4% in 2017 and less than 1% in 2018 and 2019. The slowdown in SA economy remains complicated by falling commodity prices, labour unrest, high unemployment, inequality, high deficit, increase rapidly debt and contracting exports. India is the fifth largest economy in world with GDP of USD 2.87 trillion in 2019 and it grew more than 6.0%% till 2018 and 4.2% in 2019. Both India and South Africa enjoys comparative advantage for labour and resources intensive sectors within the global market. India enjoys comparative advantage within the exports of labour intensive item like textiles and scale-intensive items while South Africa enjoys advantage in manufacturing goods. This paper analyses bilateral trade relations between India and South Africa. It also examines the trends and patterns of growth of India’s foreign trade and therefore the intensity of trade relations between India and South Africa.

KEYWORDS:  Bilateral Trade, Economic Growth, Emerging Economies, Trade Pattern.