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India could emerge as a larger sourcing base for Japanese apparel major Uniqlo as the company looks to deepen its engagement with Indian manufacturers and expand its retail presence in the country.
Commerce and Industry Minister Piyush Goyal said Uniqlo plans to increase sourcing from India, opening up opportunities for domestic textile and apparel manufacturers to supply not only the brand's Indian operations but also its stores across international markets.
The minister made the remarks following his meeting with Uniqlo founder and CEO Tadashi Yanai in Tokyo, where the discussions focused on strengthening cooperation between India and Japan in retail and manufacturing.
According to Goyal, there is significant potential to deepen bilateral ties in the textiles and apparel sector, especially as Japanese companies seek to diversify their sourcing networks and build more resilient supply chains.
Uniqlo, operated by Fast Retailing, currently has more than 20 stores in India and is looking to further expand its footprint in the country. Increased sourcing from India could also provide Indian manufacturers with an opportunity to become part of Uniqlo's wider global supply network.
However, Goyal noted that Indian textile companies will need to align more closely with Japanese market requirements. While manufacturers are increasingly adapting to these expectations, the Japanese market places strong emphasis on quality, specialised products and adherence to specific design standards.
Indian companies will also need to better understand Japanese sizing, styles and consumer preferences to compete more effectively and tap into the growing sourcing opportunity, he added.
The development comes as India and Japan look to strengthen bilateral trade and investment ties. Goyal has also said that the India Japan Comprehensive Economic Partnership Agreement, signed 15 years ago, needs to be updated and expanded to reflect the changing nature of trade and economic cooperation between the two countries.
Several Japanese companies are reportedly looking to increase their presence and investments in India, while the government is working to address business and investment related concerns.
A stronger partnership in textiles and apparel could help India further strengthen its position as a global manufacturing and sourcing hub, while offering Japanese companies greater access to the country's expanding production capabilities.
