MoU between India and Japan on cooperation in Textiles

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved a Memorandum of Understanding (MoU) between Textiles Committee, India and M/s Nissenken Quality Evaluation Centre, Japan for improving quality and testing of Indian textiles and Clothing for the Japanese market.

The MoU would enable Japan in assigning Textile Committee as their cooperative Testing and Inspection service providers in India for Textiles & Apparel products including Technical Textiles and any other products for both domestic and overseas buyers.

Significance

India’s share in the Japanese market for the export of garment is still negligible. On the other hand, Japan is the third largest apparel importer in the world. So, with this MoU, India has been provided with good opportunity to boost its textile sector. The MoU would enable the Nissenken Quality Evaluation Centre, Japan, to assign the Textile Committee as their cooperative testing and inspection service providers in India for textiles and apparel products.

Textile Committee

The textiles committee is a statutory body set up by an Act of Parliament in 1963 working under the Ministry of Textiles, Government of India with a mandate to ensure quality of all textiles and textile products for domestic and export markets.

India- Japan Trade Relation

Japan has been extending bilateral loan and grant assistance to India since 1958, and is the largest bilateral donor for India. Japan already has invested in the $90 billion Delhi-Mumbai Industrial Corridor (1,483 km high-speed rail and road line) which will see the setting up of new cities, industrial parks, ports, and airports. The India-Japan Comprehensive Economic Partnership Agreement (CEPA) that came into force in August 2011 is the most comprehensive of all such agreements concluded by India. In FY 2017-2018, India-Japan bilateral trade reached US$ 15.71 billion. Japanese Foreign Direct Investment (FDI) into India has mainly been in an automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors.

Month: Current Affairs - September, 2020