India–New Zealand FTA To Boost Textile Exports: Govt

New Delhi, Apr 28 (KNN) The India–New Zealand Free Trade Agreement (FTA) is expected to provide significant boost to India’s textile sector by improving market access and reducing tariff barriers, Textiles Ministry has said.

The Ministry stated that the agreement reflects a forward-looking partnership focused on growth and shared economic benefits. 

The New Zealand market presents opportunities for Indian exports of textiles, apparel, and made-ups.

With a population of about 5.3 million and a per capita income of nearly USD 52,000, New Zealand offers potential for high-value textile exports. 

Apparel accounts for around 65 percent of its textile imports, with key categories including casual wear, jackets, formal wear, and sportswear. Cotton apparel constitutes about 45 percent of these imports, followed by man-made fibre (MMF) products at 36 percent.

At present, New Zealand maintains 575 dutiable MFN tariff lines, with duties of 5 percent on select wool, MMF, and made-ups, and 10 percent on carpets and certain apparel categories. The FTA is expected to reduce these tariffs, thereby enhancing the competitiveness of Indian products.

India’s bilateral exports to New Zealand stand at around USD 0.65 billion, with textiles contributing approximately USD 0.1 billion. The sector has recorded consistent growth over the past decade across segments such as apparel, made-ups, carpets, fibre, yarn, and fabrics.

Potential growth areas identified include MMF-based apparel and made-ups, carpets, silk and cotton yarn, wool and jute fabrics, as well as handicrafts and handloom products. 

The agreement also opens avenues for collaboration with design houses and fashion technology institutions, alongside opportunities to expand presence through trade fairs and exhibitions.

The FTA is expected to support India’s efforts to scale up textile exports and deepen its presence in global value chains.

(KNN Bureau)