The Apparel Export Promotion Council (AEPC) has highlighted the major export potential for Indian garment manufacturers to Japan, advising the domestic industry to influence the free trade agreement (FTA) between the two countries. AEPC declared that they will spearhead a delegation to the three-day India Tex Trend Fair (ITTF) in Tokyo opening on 23rd July, where more than 200 exhibitors will join.
Many well-known Japanese brands such as Sumitomo Corporation, Marubeni, Mitsubishi, MUJI, Toyoshima, Koyo Trading, United Arrows, and MYK Fashion will attend the fair to meet their sourcing requirements.
Sudhir Sekhri, Chairman of AEPC, shared, “Japan ranks as the 4th largest importer of garments worldwide. Indian exhibitors from different regions will display a wide variety of ready-made garments (RMG), comprising collections for both summer and winter in the fair.”
ekhri also highlighted, “There is an advantage for Indian apparel industry as they are having duty-free access to Japan under the Indo-Japan trade agreement, in comparison to 9 per cent duty for Turkey and 9.5 per cent for China. This beneficial tariff scenario makes it strategically useful for Indian manufacturers and exporters to take part in the fair and take advantage of on this opportunity.”
“Currently, India holds a humble 1.37 per cent share in Japan’s total garment imports priced at US $ 23 billion. India’s strong garment industry provides a complete value chain and unique products, presenting plenty opportunities for Japanese trading companies to source from India,” he shared.
He also noted the rising prospects for trade diversion, given the waning market share of Chinese suppliers in Japan. According to Sekhri, “Indian manufacturers are well-placed to supply to both small-scale customized orders and large-volume demands, showing flexibility and capability across the board.”