Sunday Times Extra had been a favourite of tens of thousands for more than three decades.
"Announcing the end of a section of our newspaper is no easy task. The Extra has, for decades, been plagued by many concerns and challenges - financially and ideologically," Sunday Times Editor Phylicia Oppelt, wrote.
"The Extra has remained an anomaly in all of this - a racially defined product catering for Indian readers. Since 1994, we have made other similar products obsolete, an edition catering for African readers, another aimed at coloured (mixed race) readers," she said.
An earlier shutdown in 1994 was quickly reversed after a public outcry as the publishers sought to move away from "ethnic" publications with the advent of the first democratic elections that saw anti-apartheid politician Nelson Mandela becoming President after decades of white minority apartheid rule.
Oppelt said the Sunday Times had introduced various supplements in the paper to cater to lifestyle, fashion, food and travel, which had an appeal across all racial groups.