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    Economic Partnership Agreement Will Promote India'S Textile Exports To Japan

    2011/1/29 13:52:00 48

    India Apparel Market In Japan

    Because of the weakening demand in Western markets, which is affected by the recession,

    India textile and clothing

    Exporters are stepping up their efforts to expand exports to Japan. The size of the Japanese clothing and textile market is 37 billion US dollars. India enterprises are looking for preferential entry.

    Japanese market

    Prospects.


    The agreement on economic partnership between India and Japan is expected to be implemented soon. Under this agreement, the export of textiles and clothing products will enjoy zero tariffs. India exporters will be able to compete with competitors from Vietnam, Bangladesh and ASEAN countries.

    India's exporters currently account for less than 1% of Japan's textile and garment import market, while China currently accounts for 90% of the Japanese textile and clothing import market. However, Japanese industry hopes to buy the popularity outside China, showing an overwhelming advantage. Therefore, India will take advantage of this advantage to expand India's market share in Japan.


    India has a negligible share of the $23 billion 500 million garment market in Japan, compared with nearly 92% of China's share.

    The economic partnership agreement (EPA) is sure to change this situation. VimalKirtiSingh, President of India garment export promotion association, said that if we seize this opportunity, we should increase exports to Japan to US $1 billion 500 million billion in the next few years.


    India industry is already making full use of this opportunity. The India Japan Fashion Forum has been established. The forum will provide help for textile and garment enterprises.

    The proposed forum will set up an advisory committee in Japan and India.


    Mr. Singer said that although Japan is keen on the "China plus one" procurement model, India exporters must change the general view that Japanese customers are only a low cost production country in India. In addition, India has to shorten the delivery time.

    At the same time, India must adapt to the Japanese procurement mode. Japan does not directly place orders, most of the time is through designated purchasing agents and trading companies to place orders.


    According to sources, negotiations on economic partnership agreements between Japan and India have ended and the final agreement may be signed in the coming months.

    Bangladesh, Vietnam, Burma, Indonesia and some other ASEAN countries enjoy the tax exemption status of the Japanese market.


    If India enjoys the same status, India's export of textiles and clothing to Japan should be greatly boosted.

    At the same time, Japanese companies can expand their position in the textile and garment market in India, especially man-made fiber and fabric companies.


    According to published estimates, in 2009, Japanese textile exports amounted to US $8 billion 600 million and imports of about US $36 billion 500 million, which is 70% higher than that of India currently exported to the US and European markets for us $22 billion.

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