FTA to boost Indian textiles in New Zealand’s $1.9 bn market

Indian exporters are set to gain enhanced access to New Zealand’s textile and apparel market, estimated at $1.90 billion, following the conclusion of the India–New Zealand Free Trade Agreement (FTA). India’s textile and apparel exports to New Zealand stood at about $103 million in fiscal 2024–25, accounting for nearly 5 per cent of the market, and are expected to accelerate with the grant of duty-free access.

According to the government, the FTA provides zero-duty access on 100 per cent of India’s exports across all tariff lines, benefitting labour-intensive sectors such as textiles, apparel, leather and footwear. The agreement aims to improve India’s export competitiveness, support MSMEs, artisans and women-led enterprises, and strengthen India’s integration with global value chains.

Indian textile and garment exporters are set to benefit from duty-free access to New Zealand’s $1.9 billion textile and apparel market under the new FTA.
The pact grants zero-duty access across all tariff lines, boosting competitiveness and exports.
Industry bodies say it will support MSMEs, employment, value-added exports and diversification amid global demand uncertainty.

S C Ralhan, president of the Federation of Indian Export Organisations (FIEO), described the agreement as a game-changer for Indian exporters. He said comprehensive tariff elimination would significantly enhance the competitiveness of Indian textile and garment products in New Zealand while supporting employment-generating sectors. He also highlighted New Zealand’s commitment to facilitate $20 billion in foreign direct investment into India over the next 15 years as a strong signal of confidence in India’s manufacturing and export ecosystem.

The Southern India Mills’ Association (SIMA) also welcomed the conclusion of the agreement. Durai Palanisamy, chairman, SIMA, noted that the FTA, following the recently concluded India–UK trade agreement, would further strengthen India’s growth trajectory by expanding market access and improving competitiveness.

Durai appreciated and thanked Prime Minister Narendra Modi and his government for securing zero-duty access for Indian textiles and apparel. He pointed out that while India’s overall textile and apparel exports stood at $36.9 billion in fiscal 2024–25, exports to New Zealand had already crossed $103 million, and this trend is expected to gain momentum given New Zealand’s annual textile imports of nearly $1.9 billion.

SIMA said the agreement would help Indian manufacturers strengthen their presence in value-added segments such as fabrics, garments and made-ups, particularly in a developed market like New Zealand that offers stable demand and high standards. The association added that the FTA would support employment generation, higher capacity utilisation and sustained sectoral growth, while also aiding export diversification amid volatility and demand uncertainty in the global textile trade.

Fibre2Fashion News Desk (KUL)