SRTEPC: Huge Export Opportunity in the Japanese Market

10 February 2022, Mumbai:

The Government of India fixed an Export Target of US$ 400 Billion for the current financial year (2021-22) and Hon'ble Prime Minister while declaring this target had interacted and addressed all stakeholders on 6th August 2021.

As per the available export data upto January, 2021, India's commodities export has been USD 335.44 Billion (83.86 % of the annual target) and with the same rate, it is estimated to touch the figure of US$ 400 Billion.

For North-Eastern Aisa (NEA) region, commodities export till January 2022 has been around USD 38 billion, accounting for around 82% of the export target set for the NEA region.

In case of MMF and MMF blended textiles, the export till January 2022 has been around USD 141 million, accounting for around 81% of the export target set for the region. However, exports of MMF and MMF blended textiles to Japan which is one the major importing countries of these textiles, were only US$ 17 million against the export target of US$ 34 million set by the Ministry.

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It is pertinent to mention that under the Comprehensive Economic Partnership Agreement (CEPA) between India and Japan was signed on 16th February 2011 and came into force from 1st August of the same year, the entire MMF textile value chain covered under chapters 54,55,56, 58, 59, 60 and 63 enjoy Duty Free Market Access to Japan, which means that while exporting the MMF and MMF blended textiles from India to Japan, there is no import/ customs duty in the Japanese side.

Though, the Japanese market has huge export potential for the MMF and MMF blended textiles, we are unable to tap the opportunity.

In order to help the Member-exporters of this Council to avail the Zero Duty benefits while exporting to Japan under the ongoing India-Japan CEPA, it is to further that a Memorandum of Understanding (MoU) was signed in January 2021 between Textiles Committee, Ministry of Textiles, India and M/s Nissenken Quality Evaluation Centre, Japan for improving quality and testing of Indian textiles and Clothing for catering to the Japanese market. The Centre is sent up in Jaipur, Rajasthan and known as Nissenken Quality Evaluation India.

In view of the above, Member-exporters are requested to focus on exporting to the Japanese market and increase India’s market share. In case the Member-exporters face any other challenges in exporting to Japan, then may write to the Council.

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