Agreement signed on 27 April 2026 highlights scope in apparel, made-ups and fibre segments

The India New Zealand Free Trade Agreement (FTA), signed on 27 April, 2026 in New Delhi, is expected to influence trade across multiple sectors, including textiles. The Ministry of Textiles has noted that the agreement reflects a partnership focused on trade and economic engagement.

The New Zealand market presents opportunities for India’s exports in textiles, apparel and made-ups. New Zealand’s global imports in these categories are valued at $0.33 billion, $1.27 billion and $0.33 billion respectively. The country has a population of 5.3 million, with a per capita income of around $52,000 and demand concentrated in urban centres.

The apparel segment accounts for 65% of New Zealand’s global imports. Key categories within apparel include casual wear such as jeans, T-shirts, hoodies, relaxed tops and casual dresses, along with jackets, formal wear and sportswear. Cotton apparel represents 45% of imports, followed by man-made fibre (MMF) apparel at 36%.

At present, New Zealand maintains 575 dutiable MFN tariff lines, with duties set at 5% on certain wool, MMF and made-ups, and 10% on carpets, some MMF and apparel products. The FTA is expected to reduce these tariff costs for Indian exports.

India’s bilateral exports to New Zealand are valued at $0.65 billion, with textiles contributing approximately $0.1 billion. Over the past decade, exports in textiles, apparel and made-ups have shown a positive trend across sub-sectors including apparel, made-ups, carpets, fibre, yarn and fabrics.

Based on sector trends, potential areas for export growth include apparel (MMF, jute, linen, wool), made-ups (MMF, jute, linen), carpets (MMF), fibres (MMF, silk), yarn (MMF, cotton), fabrics (wool, jute, linen), as well as handicrafts and handloom products.

The agreement also provides scope for collaboration with textile design houses and fashion technology institutes. Participation in textile fairs and exhibitions has been identified as a way to utilise the opportunities under the FTA.

New Zealand remains a relevant market for Indian textile exports, with the agreement expected to support further trade expansion.