Fashion
FTA to boost Indian textiles in New Zealand’s $1.9 bn market
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)
Looking ahead, UOB forecasts Vietnam’s GDP growth to ease further to about 7 per cent in 2026 as the boost from export front-loading diminishes.
The Vietnamese dong is also expected to underperform regional peers, with UOB projecting the USD-VND exchange rate at 26,300 in the first quarter of 2026, gradually strengthening to 25,900 by the end of the year, said Vietnamese media reports quoting UOB.
Vietnam’s economy is forecast to grow 7.2 per cent in Q4 2025, taking full-year expansion to about 7.7 per cent, according to UOB.
The growth is expected to ease in 2026 to around 7 per cent as export front-loading fades.
Strong exports, manufacturing and domestic demand supported 2025 performance, though high export dependence and productivity challenges remain key risks.
Suan Teck Kin, executive director of global economics and markets research at UOB, said Vietnam’s strong 2025 performance places it among ASEAN’s fastest-growing economies, supported by manufacturing strength, robust exports, improving domestic consumption and public investment. He noted that supply-chain realignments linked to US–China tensions have benefitted Vietnam, with the US now accounting for around 30 per cent of total exports.
Meanwhile, Suan cautioned that Vietnam’s heavy reliance on exports increases vulnerability to a global slowdown, particularly weaker US demand. Rising wages without corresponding productivity gains could also weigh on competitiveness, underscoring the need for continued infrastructure investment, skills development and market diversification in 2026.
Vietnam’s exports rose 16.8 per cent year on year in January–October 2025, building on the strong growth seen a year earlier. Exports to the US jumped 28.1 per cent, aided by the lowering of reciprocal tariffs to a global base rate of 10 per cent, which prompted buyers to advance orders.
Vietnam’s trade surplus narrowed to $18.7 billion by October from $22.4 billion in 2024, reflecting higher imports of raw materials and components amid strong export demand. Manufacturing output rose 10.8 per cent in the first nine months of 2025, up from 9.4 per cent a year earlier, while four consecutive PMI readings above 50 signalled continued expansion, said UOB.
Fibre2Fashion News Desk (SG)
Nomura has projected euro area GDP growth to accelerate gradually over the next year, expecting the 0.2 per cent quarter-on-quarter growth in Q4 2025 to double to 0.4 per cent by mid-2026.
The growth will be aided by German fiscal support.
Downside risks to GDP growth in 2026 include fiscal spending taking longer to materialise and fiscal tightening in some countries, including France and Spain.
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Job cuts are continuing across most industrial sectors, with clothing manufacturers in Germany particularly planning staff reductions, according to the ifo Institute.
The ifo Employment Barometer fell to 91.9 in December, its lowest level since May 2020, reflecting ongoing job losses, especially in industry.
Job cuts are continuing across most sectors in Germany, with clothing manufacturers particularly reducing staff, according to the ifo Institute.
Companies are increasingly cautious about hiring as the weak economy weighs on the labour market.
The picture is similar in trade, with companies planning to employ fewer staff in the new year.
“In 2025, we experienced gradual job cuts, especially in industry,” said Klaus Wohlrabe, head of surveys at ifo. “The weak economy is continuing to slow down the labour market.”
Fibre2Fashion News Desk (RR)
Vietnam Q4 growth seen at 7.2% as momentum eases: UOB
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Euro area growth to accelerate gradually to 0.4% by mid-2026: Nomura
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