A Free Trade Agreement (FTA) between India and New Zealand will benefit the textile, apparel, and the engineering sectors as 8,284 tariff lines will have zero duty access to New Zealand.
Mithileshwar Thakur, secretary general of AEPC, said that for the apparel and textile sector in particular, the FTA opens avenues for market diversification for ready-made garments, knitwear, fashion apparel, home textiles, technical textiles and man-made fibre products. A. Sakthivel, vice chairman of the AEPC, said textiles and apparel will move to zero-duty from earlier tariff levels of around 10%.
New Zealand’s total imports of readymade garments (RMG) for the year 2024 are valued at ₹10,394 crore, of which knitted garments account for ₹5,424 crore. India’s apparel exports to New Zealand currently stand at ₹460 crore, representing 4.40% of New Zealand’s total RMG imports. Notably, knitted garments constitute nearly 52% of India’s total apparel exports to New Zealand.
With the FTA, there is substantial untapped potential for Indian exporters—particularly in knitted garments—to significantly expand their market share and capitalise on this growing market. The agreement, concluded within nine months of negotiations, reflects the Government of India’s strong intent to support export-led growth, he added.
The Confederation of Indian Textile Industry (CITI) chairman Ashwin Chandran said the India-New Zealand FTA will provide zero-duty market access to 100 % of India’s exports. In 2024, India was the third largest exporter of textile and apparel products ($ 138.65 million) to New Zealand, after China and Bangladesh. “Coming less than a week after the signing of the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman, the conclusion of the FTA negotiations between India and New Zealand shows India’s focus on market diversification for trade and services, he said.
Chairman of the Southern India Mills’ Association Durai Palanisamy said conclusion of the FTA with New Zealand is a timely and positive step that will significantly enhance opportunities for the Indian textile and apparel industry. It will provide improved duty free market access for Indian textiles and clothing in New Zealand. New Zealand being an important developed market with high standards and stable demand, the FTA will enable Indian manufacturers to strengthen their presence in value-added segments such as fabrics, garments and made-ups/home textiles, he said.
According to Pankaj Chadha, chairman, EEPC India, this is the second such agreement for India in the Oceania region following the ECTA with Australia deepening our strategic ties in the region. Within engineering, the FTA is expected to benefit several industries, including automobiles and auto components and capital goods and industrial machinery. Over the next five years, engineering exports to New Zealand are projected to double, reflecting strong future growth.
Published – December 23, 2025 06:44 pm IST
