Uniqlo, Other Japanese Textile Cos to Step Up India Sourcing, Pg15

Key Highlights:

• Japanese textile companies, including Uniqlo, are set to increase sourcing and investment in India.
• Commerce Minister Piyush Goyal announced this move, aiming to establish India as a global manufacturing base for textiles.
• India is also seeking significant concessions from Free Trade Agreement (FTA) partners like the US, EU, UK, and Canada.
• Japan is the world's fourth-largest garment importer, presenting a substantial market opportunity for India.
• India and Japan are reviewing their 2011 trade deal, the Comprehensive Economic Partnership Agreement (CEPA), due to India's widening trade deficit.
• Japan has pledged to invest 10 trillion yen (approximately ₹7 lakh crore) in India over the next decade.

Detailed Insights:

• Uniqlo, a major global retailer, operates approximately 4,000 stores worldwide with a 4 trillion yen turnover.
• Minister Goyal clarified that Japan's non-tariff barriers are considered "very high quality regulations" rather than restrictive barriers.
• Both nations are committed to technology transfer and collaboration in new technologies, including the semiconductor ecosystem.
• Historically, the Indian textile industry faced challenges in meeting specific Japanese requirements regarding sizes, styles, and materials.
• The Apparel Export Promotion Council (AEPC) is now actively engaging to understand and meet Japanese market demands.
• The Commerce Ministry supports Indian industries in meeting international regulatory requirements for product registration.
• The Export Promotion Mission Scheme will assist micro and small businesses with expensive registrations, such as the REACH regulations for chemicals in the EU.
• Minister Goyal has urged the Indian pharmaceutical industry to pursue global product registrations, including in Japan.

Key Concepts Involved:

• Free Trade Agreement (FTA): A pact between two or more nations to reduce barriers to imports and exports among them.
• Non-Tariff Barriers (NTBs): Trade restrictions that do not involve a tariff, such as quotas, embargoes, or specific product standards.
• Trade Deficit: An economic measure where a country's imports exceed its exports over a given period.
• Comprehensive Economic Partnership Agreement (CEPA): A broad trade agreement covering goods, services, investment, and other economic cooperation areas.