India will urge Japan to review the existing Comprehensive Economic Partnership Agreement (CEPA), which was signed in 2011.
Normally, during a review of any existing trade agreement, the signatory countries seek more market access for their respective domestic products and resolve issues which are creating hurdles in trade.As far as textiles is concerned, the CEPA has not worked for India in the last decade. India could not breach even a one per cent market share in Japan’s garment imports. India has just a 0.95 per cent of total garment imports of Japan.China, Vietnam, Bangladesh, Cambodia, Indonesia, Italy, Myanmar and Thailand are ahead of India in terms of garment exports to Japan. India has only a 1.63 per cent share of Japan’s home textile imports. India’s exports of textile products like yarn, fabrics and fiberto Japan are also negligible.
Indian textiles have not really penetrated the Japanese market. One opinion is that Indian exporters are unable to meet quality standards of Japanese buyers, which is the core issue. At India Trend Fair, held in Japan, July 20 to 22, 2022, around 150 Indian businesses showcased their latest collections to Japanese buyers, wholesalers, importers, and retailers. Businesses presented products specially designed to suit Japanese customer demand and local market trends.
