Imports of Readymade Garments by Japan & India’s share as supplier

 India’s Exports of the RMG to Japan (i.e. knit and woven apparel) showed an increase of 39.40% in 2005-06. In value terms, India’s Exports of Readymade Garments to Japan was to the tune of US$ 84.92 Million in the year 2004-05 which grew in the year 2005-06 to cross the 100 Million of US$ 118.38 Million.  Japan constituted 1.37% share in India’s Exports of RMG in the year 2005-06.  RMG constituted 4.77% share in India’s Total Exports to Japan. 
 While Woven apparel (HS 62) constituted 88% share in India’s RMG exports to Japan, Knit apparel only constituted 12% share in India’s RMG Exports to Japan.  In India’s RMG Exports to Japan, Woven apparel showed a growth of 42.11% whereas growth in exports of Knit apparel is only half i.e. 22.30% in the year 2005-06. 

India’s Exports of RMG to Japan during the last 5 years is depicted below : -

As per the WTO Figures released for Leading Clothing Importers, Japan appeared as the third largest importer of clothing in the year 2005 after EU & USA with a 7.8% share intotal Clothing Imports with a total value of Imports worth US$ 21.19 Billion showing a growth of 3.56%.

Table I : Japan’s Global Imports of Knit and Woven Apparel 

Rank in Japan's Global Imports

Rank in Imports from India

HS

Description

Global Imports Value in Million US$

%age  Share in Japan's Global Imports

% Change

Imports from India Value in Million US$

India's Percentage Share

% Change

2004

2005

2004

2005

05/04

2004

2005

2004

2005

05/04 

11

21

 61

KNIT APPAREL

9191.50

9783.56

2.02

1.9

6.44

15.31

22.84

0.17

0.23

49.16

9

6

 62

WOVEN APPAREL

11268.61

11404.49

2.47

2.21

1.21

91.89

118.28

0.82

1.04

28.71

 

 

 

Total for RMG

20460.11

21188.05

4.49

4.11

3.56

107.2

141.11

0.52

0.67

31.63

 %age Share of Knit Apparel in Total RMG Imports

44.92

46.17

-

-

2.78

14.28

16.18

-

-

13.32

%age Share of Woven Apparel in Total RMG Imports

55.08

53.83

-

-

-2.27

85.72

83.82

-

-

-2.22

Japan’s RMG Imports from India have shown an increase of 31.63% over previous year and India’s share is only 0.67%.  Woven apparel constitute a major share in Japan’s total RMG Imports and Imports from India, though the share of Woven apparel has showed a minor decline of more than 2% in both Global Imports as well as Imports from India.  Imports of Knit Apparel from India have   shown an increase of 13.32%. 

Total import of RMG by Japan during January – October amounted to US$ 18.79 Billion showing a growth of 5.22% over the previous year.  RMG constitute 3.92% share in Japan’s total imports.  While Knit apparel constituted 45.92% share in Japan’s total RMG Imports, Woven apparel constituted 54.08% share in Japan’s total RMG Imports thereby showing growth of 5.41% and 5.06% respectively.

Table II : Major Supplier Countries to Japan for RMG

Rank

Country

Value of Imports in Million US$

% Share

% Change in Imports Value

%age Change in Share

2003

2004

2005

2003

2004

2005

2005/

2004

2005/

2004

 

Total RMG Imports             

18391.37

20460.11

21188.05

100

100

100

3.56

0.00

1

China                   

15009.12

16862.45

17448.49

81.61

82.42

82.35

3.48

-0.08

2

Italy                   

936.29

994.54

965.07

5.09

4.86

4.55

-2.96

-6.30

3

Vietnam                 

484.48

548.06

588.09

2.63

2.68

2.78

7.30

3.62

4

Korea, South            

286.16

264.75

373.58

1.56

1.29

1.76

41.11

36.26

5

United States           

204.50

224.01

258.86

1.11

1.09

1.22

15.56

11.59

6

Thailand                

218.10

231.35

236.70

1.19

1.13

1.12

2.31

-1.20

7

France                  

223.21

220.67

191.08

1.21

1.08

0.90

-13.41

-16.39

8

India                   

92.13

107.20

141.11

0.50

0.52

0.67

31.63

27.11

9

Indonesia               

125.43

117.43

115.14

0.68

0.57

0.54

-1.95

-5.32

10

Philippines              

85.01

91.51

90.71

0.46

0.45

0.43

-0.88

-4.28

 

Total for Top 10

17664.43

19661.97

20408.83

96.05

96.10

96.32

3.80

0.23

The above tabulation shows that there is an increase of 27.11% in India’s share.  However, South Korea, USA and Vietnam’s share have also increased.  France’s share has showed a decline of –16.39% in the year 2005 as compared to previous year.  There is also a miniscule decline in China’s share, though imports from China showed an increase of 3.48% in the year 2005.  Though in case of South Korea the imports in the year 2004 showed a decline but it soon recovered and showed an increase of more than 40% in the year 2005.  Imports from France have showed a decline subsequently in last two years. 
Analysis of Specific RGM Items at the 6 Digit HS Code Level in Japan’s Global Imports and Imports from India

An analysis of 6 Digit Items, which fall under Knit Apparel and Woven Apparel, has been provided to give an insight of the major items of Global Imports and Imports from India and Potential Items where India can increase its share. 

Top 10 RMG Items in Japan’s Global Imports and Top 10 in Imports from India

Rank in Japan's Global Imports of RMG

Rank in Imports of RMG from India

HS

Description

Japan's Global Imports 2005

% Share in Japan's Global Imports of RMG 2005

% Change 2005/  2004

Global Imports AIUV 2005

Unit of Measurement

Imports from India 2005

%age Share of India 2005

% Change 2005/ 2004

Imports from India AIUV 2005

Indicative Potential Trade

1

13

 611020

Jerseys of Cotton

1480.98

6.99

-2.32

4.86

/NO

2.32

0.16

18.85

7.41

103.37

2

32

 611030

Jerseys, etc. of Manmade Fibres

1428.47

6.74

0.28

5.43

/NO

0.65

0.05

175.11

11.72

12.28

3

8

 620462

Trousers, etc. of cotton

1207.02

5.70

3

8.22

/NO

3.98

0.33

-6.25

5.47

184.19

4

5

 610910

Cotton T-shirts

1160.87

5.48

8.21

2.2

/NO

7.59

0.65

46.62

2.78

1022.55

5

7

 620342

Trousers, etc. of cotton

628.30

2.97

7.74

9.38

/NO

3.99

0.64

15.71

11.46

305.64

6

11

 620311

Suits of Wool

608.17

2.87

2.1

58.44

/NO

2.67

0.44

3222.74

48.66

14.72

7

71

 611011

Sweaters and similar articles, knitted /crocheted of wool

572.91

2.70

-12.43

13.12

/NO

0.14

0.02

24.22

21.02

59.80

8

3

 620520

Men’s or boy’s shirts of cotton

562.59

2.66

1.92

7.27

/NO

11.61

2.06

23.79

7.93

550.98

9

10

 610610

OF COTTON

483.07

2.28

24

4.13

/NO

3.05

0.63

99.76

3.78

255.01

10

204

 621210

Brassieres, knitted /crocheted

445.68

2.10

3.18

3.89

/NO

0.00

0.00

0

0

7.65

12

1

 620630

Blouses, shirts, and shirts-blouses of cotton

418.02

1.97

3.18

6.36

/NO

31.86

7.62

22.87

4.29