The Confederation of Indian Textile Industry (CITI) expects the Free Trade Agreement (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 $350 billion textile and apparel industry.

The India-New Zealand FTA will provide duty-free access to Indian textiles. According to New Zealand’s Ministry of Foreign Affairs and Trade, “made-up textile articles” were the fourth-largest category of Indian imports into New Zealand in the year ended December 2025. New Zealand’s imports of Indian made-up textile articles were valued at NZ$80.22 million in the year ending December 2025.

“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 would like to express its gratitude to the Hon’ble Prime Ministers of India and New Zealand Shri Narendra Modi and Mr Christopher Luxon, the Commerce Minister, and all concerned officials for making this deal possible within four months of the conclusion of the FTA negotiations,” CITI Chairman Ashwin Chandran said.

“The FTA with New Zealand offers tremendous upside potential for India’s textile and apparel sector that extends beyond greater market access and an increase in realisations by providing a more level playing field to our exporters vis-à-vis those from other countries. 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.

“This endorsement can tremendously benefit India’s textile and apparel exporters as they attempt to scale up the value chain and create more and better-quality jobs by leveraging the multiple FTAs being signed by India.”

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.

India’s textile and apparel sector is the country’s second-largest employer and a major contributor to GDP and exports. India is targeting textile and apparel exports worth $100 billion by 2030, as part of its $350 billion ambition for the sector.