Indian garment sector possesses immense potential for Japanese trading companies to source their apparel requirements from India, with its unique offerings.
To capitalize on this opportunity, council members are actively participating in the 12th edition of the India Tex Trends Fair in Tokyo. This fair serves as a platform for showcasing a diverse range of Indian apparel products to potential Japanese buyers.
Furthermore, there has been a positive trend in apparel imports to Japan over the past three years. The country’s total imports worldwide have steadily increased from $28.49 billion in 2018 to $46.72 billion. As the fourth-largest garment importer globally, following the United States, Germany, and France, Japan offers a lucrative market for the Indian apparel industry to expand its reach and establish strong trade partnerships.
By leveraging this market potential and the growing demand for garments in Japan, Indian apparel exporters have a favorable chance to increase their presence and contribute to the industry’s further growth.
Out of Japan’s total garment imports valued at $23 billion, India’s share currently stands at just one percent. However, the post-Indo-Japan free trade agreement provides a significant advantage for Indian ready-made garments, which can now be imported duty-free. In contrast, China and Turkey enjoy duty-free access of approximately nine percent.
Highlighting India’s strengths, the council’s vice-chairman emphasized the extensive availability of raw materials such as cotton, jute, silk, and wool, making India the global leader. Additionally, India boasts the world’s second-largest spinning and weaving capacity, enabling a complete value chain solution from farm to fashion with a remarkable 95 percent value addition.
Recognizing the importance of the textile industry, the government has implemented various initiatives to support its growth and development. This includes the production-linked incentive scheme and the PM MITRA scheme, which aims to provide assistance and incentives to textile manufacturers.
Seminar and business delegation meetings were organized alongside the fair to foster collaboration and understanding, strengthening partnerships and knowledge exchange between stakeholders.
With these measures, India is poised to enhance its market share in the Japanese garment industry. The country’s unique strengths, favorable trade agreements, and government support pave the way for increased exports and deeper collaborations within the sector.