Exploring New Horizons: Indian Garment Industry Eyes Japanese Market
In a significant development for the Indian garment industry, the Apparel Export Promotion Council (AEPC) has highlighted a golden opportunity for domestic players to extend their market reach to Japan. With the existing free trade agreement (FTA) between India and Japan serving as a conduit for enhanced trade relations, Indian garment manufacturers are poised to make a considerable impact on the Japanese market.
The AEPC has taken a proactive step by leading a delegation to the India Tex Trend Fair (ITTF) in Tokyo, scheduled to start on July 23. This three-day event is a prestigious platform, attracting over 200 exhibitors and showcasing an array of renowned Japanese brands seeking to source their garment requirements. Brands like Sumitomo Corporation, MUJI, Toyoshima, Marubeni, Mitsubishi, Koyo Trading, United Arrows, and MYK Fashion are among the prominent participants. The fair provides a unique opportunity for Indian exhibitors to display a wide variety of Indian ready-made garments (RMG) spanning diverse categories and seasonal collections.
AEPC Chairman Sudhir Sekhri pointed out the significant edge Indian apparel has in the Japanese market, thanks to the Indo-Japan trade agreement. Unlike competitors such as Turkey and China, which are subject to import duties of 9% and 9.5% respectively, Indian apparel enjoys duty-free access to Japan. This strategic advantage presents a lucrative opportunity for Indian RMG manufacturers and exporters to explore and expand their presence in Japan.
Japan ranks as the fourth largest garment importer globally, with total garment imports valued at USD 23 billion. However, India’s share in this expansive market stands at a mere 1.37%, indicating substantial room for growth and expansion. The call to action for Indian suppliers is not just to increase their footprint in the Japanese market but also to leverage their strengths in flexibility, customization, and the ability to handle orders of varying sizes. With the Chinese share in the Japanese market seeing a decline, there emerges a stronger opportunity for trade diversification and for Indian suppliers to position themselves as preferred partners for Japanese trading companies.
India’s robust garment industry, known for its complete value chain and distinctive offerings, is well placed to meet the diverse and high-quality standards demanded by the Japanese market. This strategic push towards strengthening trade ties with Japan not only opens new avenues for Indian garment manufacturers but also fosters greater economic cooperation between India and Japan, promising mutual benefits for both nations.
As the Indian garment industry embarks on this promising journey to explore and penetrate the Japanese market, the pivotal role of the Indo-Japan FTA as a facilitator of this trade relationship cannot be overstated. It’s an opportune moment for Indian garment players to harness their potential, showcase their capabilities on an international platform, and forge lasting trade relations with one of the world’s largest garment importers.
