Apparel exports to Japan likely to rise by 25% YoY: AEPC

New Delhi, Feb 13 (KNN) India’s apparel exports to Japan is expected to grow by 20-25 per cent year on year (YoY) along with rising opportunities due to changing geopolitical landscape, government support schemes like PLI, Mega Park scheme, said Naren Goenka, Chairman, Apparel Export Promotion Council (AEPC).

He said this while addressing the series of Reverse Buyer Seller meet under the name of “UPNEXT INDIA” kick started with Japan last week.

Goenka also stressed on utilizing benefits of  Free trade Agreement (FTAs) with major markets as key growth drivers.

The upnext 2023 is witnessing a decent turnaround and inquiry from the buyers in all the segments of the exhibits.

“At a time when the apparel exports are on a tight spot, it is important that Industry starts innovating in design, promotions, compliance and supply chain efficiencies,” he added.

On the post covid-19 reorientation of the supply chain, Goenka said, “We have a strong business opportunity in Japan reflected by the fact that China, which has been a dominant garment supplier to Japan, has witnessed a decline in the past 5 years giving significant advantage to India.”

“Garment industry in both the countries have geared up to increase this trade taking advantage of duty-free access for Indian RMG post Indo-Japan CEPA agreement as against an approximate 9 per cent duty for China and Turkey,” he opined.

On the concern raised during the panel discussion on the quality, capacity creation, cost of logistics and having the diverse fabric basket, etc. for the Japanese market, Chairman AEPC replied, “The government is coming up with a PLI scheme which will majorly include Ready Made Garment (RMG).”

“This PLI will have much simpler norms to be eligible, which will largely address the issue of capacity creation and fabric diversification. Additionally, the government has issued BIS standards for which will include importers and exporters to ensure stable and safe quality. Plus, on the higher freight cost, the government is considering the vessels directly to Japan so that the time and cost gets reduced drastically,” he added.

The two days of upnext India 2023 also hosted the theme pavilions for the startups in technology and sustainability domain, two very crucial areas where Indian garment industry is making rapid transformations.  (KNN Bureau)