The Apparel Export Promotion Council (AEPC) highlighted a significant opportunity for the Indian apparel industry to expand its shipments to Japan. With a decline in Chinese garment exports to Japan, Indian exporters can fill the gap and cater to the growing demand in the island nation.
AEPC Chairman, Naren Goenka, emphasized that India's robust garment industry, boasting unique offerings, provides a favorable landscape for Japanese trading companies to source their products from.
The potential for growth is evident, given the positive trend in apparel imports into Japan over the last three years, with the nation now standing as the world's fourth-largest garment importer after the US, Germany, and France. However, out of Japan's total garment imports of USD 23 billion, India's share is currently just one percent.
This scenario presents a significant business opportunity for India, as China, the dominant supplier of garments to Japan, experienced a decline in the past five years. Moreover, India enjoys a distinct advantage with duty-free access for its ready-made garments under the Indo-Japan free trade agreement, whereas China and Turkey face around 9 percent duties.
Sudhir Sekhri, the vice-chairman of the council, further emphasized India's potential by highlighting its abundant raw material availability, including cotton, jute, silk, and wool, and being backed by the world's second-largest spinning and weaving capacity.
With a remarkable 95 percent value addition, India can offer a complete value chain solution from farm to fashion to the global market. To bolster the growth and development of the textile industry, the Indian government has implemented various supportive measures like the production-linked incentive scheme and PM MITRA scheme.
In conclusion, the Indian garment industry's distinctive offerings, coupled with the decline in Chinese exports, present a golden opportunity for Japanese traders to explore and strengthen their sourcing ties with India, leading to a mutually beneficial partnership.
