Duty-free access to New Zealand market expected to support growth in India’s garment exports

The Apparel Export Promotion Council (AEPC) has welcomed the signing of the India–New Zealand Free Trade Agreement (FTA). The agreement was signed between India’s Hon’ble Commerce & Industry Minister (HCIM) Shri Piyush Goyal and Hon. Todd McClay, Minister for Trade and Investment, New Zealand. AEPC outlined its implications for India’s textile and apparel sector.

AEPC Chairman Dr. A. Sakthivel said,
“This forward-looking agreement is a major boost for India’s apparel exporters. With 100% 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.”

Dr. Sakthivel stated that New Zealand imports over USD 1.2 billion worth of ready-made garments annually, with India’s current share at around 4.4%. He noted that the FTA provides scope to expand India’s presence in this market, particularly in categories such as cotton T-shirts, shirts, knitwear, and garments.

He further indicated that the agreement has the potential to treble India’s ready-made garment (RMG) exports to New Zealand within the next two years, supported by improved market access and pricing competitiveness.

AEPC also noted that the agreement aligns with India’s capabilities in cotton-based apparel and provides opportunities for diversification into man-made fibre segments in line with New Zealand’s import demand trends.

Highlighting the broader impact, Dr. Sakthivel said,
“The textiles and clothing sector, being one of the largest employment generators in the country, stands to benefit immensely from this agreement. It will strengthen India’s position as a reliable sourcing destination and drive sustainable export growth.”

AEPC stated that it will continue supporting exporters through market outreach, capacity building, and export promotion initiatives to enable utilisation of the agreement.

“This agreement opens a new chapter for India’s apparel exports to New Zealand. AEPC will work closely with the industry to translate this opportunity into tangible gains,” Dr. Sakthivel added.