India eyes SA textile industry

Johannesburg - Cooperation between Indian and South African clothing and textile manufacturers could attract investors to this country and help create and retain jobs in the local industry.

Vikram Doraiswami, India's consul-general in Johannesburg, told Sake24.com that there is considerable potential to strengthen relations in this area, particularly because South Africa enjoys very favourable market access to the US and Europe in terms of clothing and textile exports.

The preferential access to the European Union and the US, the world's largest clothing importer, could be used as a marketing tool to attract investment into the industry. South Africa enjoys tariff-free market access to the US for certain clothing and textile goods as part of the African Growth and Opportunity Act (Agoa).

A delegation of 52 Indian clothing and textile companies are in South Africa this week to market their products to retailers and other players in the industry. South Africa is regarded as an export market offering great potential. Indian groups currently hold less than 4% of the market share of total clothing and textiles imported through South Africa.

In the early 2000s India had 15%-odd market share of South African imports.

The Indian companies are looking for opportunities to establish joint ventures with South African manufacturers - among other things to serve the local retail industry.

On Thursday and Friday the Indian companies are having an exhibition in the Cape International Conference Centre.

Edgars, in particular, has shown great interest in building ties with Indian suppliers to diversify its dependence on Chinese imports, said a spokesperson for the Indian delegation.

- Sake24.com

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