India–New Zealand FTA likely to enhance textile exports: Govt

Lower tariffs, wider access to boost India’s apparel and MMF shipments.

The India–New Zealand Free Trade Agreement (FTA) is expected to deliver a major push to India’s textile and apparel exports by improving market access and reducing tariff-related hurdles, the Ministry of Textiles said.

The ministry said the agreement signals a forward-looking partnership aimed at mutual growth and shared economic gains. It added that New Zealand offers promising opportunities for Indian exporters across textiles, apparel and made-ups.

With a population of around 5.3 million and a per capita income of nearly USD 52,000, New Zealand is seen as a market with strong potential for high-value textile products. Apparel forms nearly 65% of New Zealand’s textile imports, with major categories including casual wear, jackets, formal clothing and sportswear. Cotton apparel makes up about 45% of these imports, while man-made fibre (MMF) products account for around 36%.

Currently, New Zealand has 575 dutiable MFN tariff lines, with import duties of 5% on select wool, MMF and made-up items, and 10% on carpets and certain apparel categories. The FTA is expected to lower these duties, which could significantly improve the competitiveness of Indian textile products in the market.

India’s bilateral exports to New Zealand are estimated at around USD 0.65 billion, of which textiles contribute roughly USD 0.1 billion. The textile sector has posted steady growth over the past decade, spanning apparel, made-ups, carpets, fibre, yarn and fabric segments.

The ministry highlighted potential expansion areas such as MMF-based apparel and made-ups, carpets, silk and cotton yarn, wool and jute fabrics, and traditional segments including handicrafts and handloom products.

The agreement is also expected to create opportunities for collaboration with New Zealand-based design houses and fashion technology institutions. It may further help Indian exporters strengthen their presence through trade fairs and exhibitions.

The ministry said the FTA will support India’s broader goal of scaling up textile exports and strengthening its integration into global value chains.