SIMA Highlights India–New Zealand FTA as New Opportunity for Textile Exports

The Indian textile industry continues to operate in a complex global environment influenced by geopolitical developments, including the recent Middle East crisis. In response, the Government of India has implemented measures to support the sector, including interventions aimed at addressing logistics and supply chain disruptions.

The Ministry of Commerce has advised the industry to maintain a strong presence in established export markets while also focusing on exploring new markets, diversifying product offerings, and increasing value addition. As part of this approach, the Government of India has entered into multiple Free Trade Agreements (FTAs) with fast-growing economies and continues to pursue similar agreements with other partners.

In a press release issued on April 28, 2026, Mr. Durai Palanisamy, Chairman of SIMA, expressed his sincere gratitude and appreciation to the Hon’ble Prime Minister and the Hon’ble Minister of Commerce & Industry for the successful signing of the India–New Zealand Free Trade Agreement (FTA) on 27.04.2026. He has stated that this landmark development is set to significantly strengthen India’s textile and apparel sector and enhance its presence in the New Zealand market.

Mr. Durai Palanisamy has emphasised that this historic agreement provides 100% duty-free access for Indian textile exports, including apparel, home textiles and made-ups to the New Zealand market, which in turn, is expected to drive growth across downstream sectors. He further noted that the extension of MFN-equivalent benefits under the FTA ensures a level playing field for Indian exporters and marks a significant step forward in enhancing meaningful market access.

Data indicates that New Zealand’s textile imports from the world stood at USD 1,904.45 million, USD 1,892.19 million, and USD 1,842.29 million during 2023, 2024, and 2025 respectively. Imports from India during the same period were USD 127.13 million, USD 138.53 million, and USD 131.80 million, with India’s share remaining steady at around 7%.

According to the Union Ministry of Textiles, India’s bilateral exports to New Zealand are currently valued at approximately USD 0.65 billion, with the textile sector contributing around USD 0.1 billion. Growth across sub-sectors including apparel, made-ups, fabric, yarn and fibre is expected to support further expansion.

SIMA Chief has stated that this agreement is aligned with the Government of India’s vision of “Viksit Bharat 2047,” which focuses on strengthening manufacturing and export capabilities, while targeting a textile and apparel market size of USD 350 billion by 2030.

Mr. Durai has also expressed his sincere appreciation to the Ministry of Finance, the Ministry of Commerce & Industry and the Ministry of Textiles for their coordinated efforts in concluding FTAs with key global markets. He noted that these agreements contribute to improved market access for the Indian textile sector.

SIMA Chief has asserted that the India–New Zealand FTA is expected to strengthen bilateral trade relations, support growth opportunities and contribute to employment generation within the textile sector.