High Cost Labor Force Hinders India Investors From Entering South Africa'S Textile Industry

Vikram Doraiswami, Consul General of India in South Africa, said that the high cost labor force in South Africa has become a major obstacle that hinders India investors from entering South Africa's textile industry.

Because of the increase in cost, India textile production investors who originally used South Africa as a springboard to enter other African countries are gradually considering adjusting their investment strategies.

Doraiswami pointed out that the India economic department had raised the issue of consultation with the South African government on the issue of cost increase. At the same time, he also hoped that the fifth textile and clothing products of India will be held in Johannesburg and Cape Town, South Africa in March.

At present, South Africa has reached 30% - 40% in terms of levying taxes on textiles and clothing.

In 2009, the Ministry of trade and industry of South Africa provided more incentives and mechanisms to South African non local textile and garment producers to further enhance the competitiveness of local producers, which aimed at reducing the impact of international low-cost textile and garment products on local producers in South Africa.

Data show that since 1990s, India's market share in South Africa has dropped from the initial 15% to 7% today.

Doraiswami also pointed out that India, the world's second largest textile and garment industry after China, has reached 7 million of its workforce and its sales volume has reached nearly 10 billion US dollars, mainly in Europe, Asia, the Middle East and the Americas.

The textile and clothing products exported to South Africa are mainly middle class consumers.

Apart from South Africa, India also has trade with the southern African Customs Union countries including Botswana, Lesotho, Namibia, Swaziland and other countries.

At present, India and southern Africa