To further promote trade relations between South Africa and India, 30 clothing and textile manufacturers from India would show their collections of finished garments and interior décor at the Indian clothing and textile trade show in March.

Although South Africa was viewed as a relatively small market for India, when compared with the US and Europe, it was hoped that this would increase. Indian Consular General Vikram Doraiswami said that eventually, the idea would be to invest in manufacturing capacity in South Africa, should suitable incentives be in place to attract investors.

He added that one of the existing incentives for local manufacture would be the fact that Southern African Customs Union (Sacu) members have duty-free quota-free clothing and textile access to markets in the US for example.

Other possible incentives that could attract investment would include tax breaks and incentives for export promotion, as well as offsetting of duty costs, and strong logistical solutions.

India currently has about 7% of the garment share in South Africa, which is a decline from levels in the 1990s, as clothing imports to South Africa have tailed off recently, in part, owing to the increase of tariffs on clothing and textiles.

Tariffs on clothing and textiles were, on average, at about 30%, although tariffs on higher end, intricately embellished items, which could not as easily be produced locally, were lower.

The producers exhibiting at the trade fair would largely cater for higher end buyers, and retailers expected to attend the fair included Stuttafords, Woolworths and Edgars, for example.

Doraiswami noted that India has found a niche in top-end clothing manufacture, as it could not compete with China on cost.

Costs to produce clothing in South Africa were even higher, and the decline of the sector has been a cause for concern within government. Finance Minister Pravin Gordhan stated in his 2011 Budget speech on Wednesday that a task team comprising representatives of the manufacturing, importing and retail industries, and a range of public sector stakeholders, would begin interventions across the entire supply chain to clamp down on illicit clothing and textiles imports.

The clothing and textile sector in South Africa was said to be most visibly affected by the illicit economy in recent years, which has resulted in significant loss of jobs in local manufacturing plants.

Doraiswami added that Indian clothing imports were not directly competing with local manufacture because of the high-end, hand crafted nature of the garments. “We are trying to create trade partnerships that are not disruptive of South African manufacturing efforts.”

India is the world’s second largest producer of textile and garments, and garment exports totalled $10,17-billion during 2008/9, giving it a 2,99% share of the global market. The Americas, EU, much of Asia and the Middle East and South Africa are India’s clients.

The industry in India supports some seven-million people as part of its workforce and the aim was to double this figure by 2011/12. The sector is the second largest provider of employment in the country.

The Indian Apparel Export Promotion Council (AEPC) said that for every 100 000 rupee (about R17 000) invested in the industry, an average of seven additional jobs were created.

The apparel sector alone has contributed 8% to India’s total exports, with exports recording a 1% growth over last year. By 2011/12, India expects to record a 15% growth in quantity and 20% growth in values.

India’s natural assets also played a role in boosting the country’s garment industry by providing quality raw materials. India is the largest producer of jute, the second-largest producer of cotton, silk and cellulosic fibre, the third-largest producer of raw cotton and the fourth-largest producer of synthetic fibre.

The trade show, now in its fifth year, was an initiative of the Ministry of Textiles and Commerce in India, under the auspices of the AEPC. The show has grown year by year, and allowed Indian manufacturers to assess the design requirements of South African interests.

Bilateral trade between South Africa and India has increased, and has already reached some $10-billion a year – a figure that leaders had aimed to meet by the end of 2011.

The trade balance was slanted in South Africa’s favour, as the country exported substantial minerals and metals commodities to India.

While India hoped to increase exports of automotive components, pharmaceuticals and clothing and textiles to South Africa, there was said to be significant scope for South African companies in India in the sectors of mining technologies and construction.