India Invites Japanese Investors as Textile Exports to Japan Reach $354 Million

India’s textile exports to Japan stood at $354 million in 2024, highlighting a substantial untapped market within Japan’s total textile imports of $30.87 billion. During a recent high-level delegation to Tokyo, Indian officials encouraged leading Japanese textile firms to invest in the country’s flagship PM MITRA Parks, aiming to strengthen collaboration across apparel, machinery, technical textiles, and fabric-processing sectors.

India–Japan Textile Partnership Gains Momentum

Under the Comprehensive Economic Partnership Agreement (CEPA) signed in 2011, India and Japan have significantly reduced tariffs and trade barriers, enhancing Indian exporters’ competitiveness in Japanese markets. 

A new ESG task force, instituted by the Ministry of Textiles, is driving sustainable manufacturing practices, while Japan's AOTS (Association for Overseas Technical Cooperation and Sustainable Partnerships) is training Indian Textile Committee officers on Japanese quality standards in hubs such as Mumbai, Kolkata, Jaipur, and Tirupur.

Industry Engagement and Japan Trend Fair in Tokyo

The India Trend Fair 2025, held in Tokyo, served as a premier B2B platform featuring over 180 Indian exporters across apparel, home textiles, accessories, and sustainable fashion. Organised by JIIPA in collaboration with the Ministry of Textiles and the AEPC, the event facilitated buyer meetings, brand showcases, and engagement with Japanese industry leaders, including Uniqlo, Toray, YKK, and others. These engagements also included dialogues on investing in India’s PM MITRA textile parks and leveraging incentives like Production Linked Incentive (PLI) schemes in MMF fabric and technical textiles.

Strategic Infrastructure and Industrial Hub Investments

India is rolling out PM MITRA Parks, offering plug‑and‑play infrastructure to global textile investors. Madhya Pradesh alone is allocating nearly 1,550 acres in Dhar for its park, targeting ₹15,000 crore in investment and generating around 100,000 jobs. These parks, supported by PLI incentives and industry-focused infrastructure, aim to establish India as a global manufacturing hub with high compliance standards and sustainability credentials.

Growth Outlook and Future Potential

With just 1% market share in Japan’s $ 30.87 billion import ecosystem, India has a vast scope to expand exports and investment. The convergence of government-led initiatives—including CEPA, PM MITRA Parks, ESG compliance, PLI schemes, and quality training—positions India to significantly increase its textile trade and industrial output.

Conclusion

India is making a calculated attempt to close around the $30 billion trade imbalance by reaching out to the Japanese textile sector. India is creating the framework for stronger trade and investment flows through bilateral agreements, infrastructural development, and quality improvement initiatives. By taking these actions, India's textile exports and worldwide standing may find a new avenue for growth.