In a significant boost to India-Japan economic ties, Japanese companies have shown strong interest in investment in India’s textile sector. The Apparel Export Promotion Council (AEPC) announced that several top firms from Japan are exploring opportunities for sourcing and manufacturing collaborations with Indian apparel companies.
The move comes amid growing demand for high-quality textiles, sustainability-driven supply chains, and strategic market expansion—areas where India is emerging as a reliable and cost-effective partner.
Growing Collaboration in Focus at India Tex Trend Fair, Tokyo
The India Tex Trend Fair (ITTF), held in Tokyo, served as a catalyst for deeper engagement between Indian exporters and Japanese buyers. The event witnessed active participation from a wide range of stakeholders, including renowned Japanese companies such as Uniqlo, Adastria, Toray, Itokin, Broque Japan, Daiso, YKK, and Pegasus.
Sudhir Sekhri, Chairman of AEPC, stated:
“We have appealed to Japanese brands to increase their sourcing from India and consider long-term investments. The response has been highly encouraging, and we’re optimistic about enhanced collaboration in the near future.”
Investment Potential Backed by Policy Push and Global Trends
The Indian government is playing a proactive role in strengthening the domestic textile sector. One of the key initiatives is the creation of seven PM MITRA Parks, designed to provide world-class infrastructure, reduce logistics costs, and enhance competitiveness in textiles manufacturing.
Textiles Minister Giriraj Singh, who inaugurated the Tokyo fair, emphasized India’s readiness to meet international standards. The fair was jointly organized by the Embassy of India, Ministry of Textiles, AEPC, and the Japan India Industry Promotion Association (JIIPA).
“India is committed to delivering high-quality, sustainable textile solutions, making it a preferred sourcing destination for Japanese firms,” Sekhri added.
Trade Snapshot: Enormous Growth Room in Japan’s USD 35 Billion Apparel Market
While Japan imported USD 23 billion worth of garments last year, India’s share was just USD 234.5 million in 2024—a mere 1%. The AEPC views this gap as a golden opportunity for Indian exporters to expand their footprint in Japan.
Key Drivers for Growth:
- Duty-free trade access
- Strong sustainability and compliance focus
- Flexible and scalable manufacturing base
- Commitment to Japanese quality standards
However, challenges remain. India needs to match Japanese expectations, particularly in areas such as man-made fiber (MMF) quality, trade simplification, and compliance with local regulations.
Strategic Importance of Japan in India’s Textile Export Landscape
Japan represents not just a lucrative market, but also a gateway to other East Asian economies. Strengthening the textile trade with Japan can enhance India’s role in regional value chains and diversify export markets beyond traditional destinations like the US and EU.
The AEPC stressed that by aligning with Japanese standards and investing in technology and training, Indian manufacturers can significantly elevate their global competitiveness.
Conclusion of Investment in India : A Stitch in Time for India-Japan Textile Ties
The growing interest of Japanese firms in India’s textile sector is a timely development for both nations. As India scales up production capacity and upgrades quality benchmarks, Japan’s investments and sourcing partnerships could unlock a new era of textile trade between the two countries.
With strong government support, an improving business ecosystem, and mutual interest in sustainable growth, the India-Japan textile collaboration is poised to create a lasting economic impact.
Source: PTI
