India-NZ FTA positive for India's textile, apparel exports; to create jobs, says industry

Welcoming the signing of the India-New Zealand Free Trade Agreement FTA, industry and export bodies on Monday said it would support higher export volumes, job creation, and growth of MSMEs across the textile and apparel value chain.

Welcoming the signing of the India-New Zealand Free Trade Agreement (FTA), industry and export bodies on Monday said it would support higher export volumes, job creation, and growth of MSMEs across the textile and apparel value chain. India and New Zealand on Monday inked a free trade agreement, aimed at boosting two-way commerce and investments. The pact will come into force on a date agreed upon by both sides. Total bilateral trade in goods and services reached USD 2.4 billion in 2024. The India-New Zealand FTA will provide duty-free access to Indian textiles. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said, ''This forward-looking agreement is a major boost for India's apparel exporters. With 100 per cent duty-free access to the New Zealand market, Indian products will gain immediate price competitiveness, particularly in labour-intensive segments such as garments and textiles. This will support higher export volumes, job creation, and growth of MSMEs across the value chain.'' Sakthivel highlighted that New Zealand imports over USD 1.2 billion worth of ready-made garments annually, with India currently holding a share of around 4.4 per cent. He noted that the FTA presents a strong opportunity to significantly enhance India's presence in this market, especially in key categories such as cotton T-shirts, shirts, knitwear, and garments. He further emphasised that the trade deal has the potential to treble India's ready-made garment (RMG) exports to New Zealand within the next two years, driven by improved market access and competitive pricing. Confederation of Indian Textile Industry (CITI) said it expects FTA between India and New Zealand to strengthen the ongoing efforts of India's textile and apparel exporters to reduce dependence on select markets, move up the value chain and lend added momentum to India's 2030 aspiration of a USD 350 billion textile and apparel industry. ''Amid the ongoing geopolitical tension in West Asia, the signing of the FTA between India and New Zealand comes as a breath of fresh air for India's textile and apparel exporters,'' CITI Chairman Ashwin Chandran said. ''As a high-income, quality-conscious market with a highly discerning, well-informed consumer base, New Zealand's strong acceptance of higher-value Indian textile products can serve as strong validation of Indian exporters' ability to compete effectively on both quality and price,'' Chandran pointed out. The CITI Chairman said sustainable textiles, home textiles and technical textiles offered the greatest potential for India's textile exporters in New Zealand. With New Zealand being a major exporter of high-quality wool, the FTA could make it more lucrative for Indian companies to import premium wool for manufacturing and then exporting high-end garments, he added.