India’s textile and apparel industry is expected to benefit significantly from the forthcoming India-New Zealand Free Trade Agreement (FTA), which is set to enhance bilateral trade, improve market access, and create new export opportunities in New Zealand’s import-dependent textile market.
The agreement marks a major step in strengthening economic relations between the two countries. According to Prime Minister Narendra Modi, the FTA will add “depth and dynamism” to bilateral cooperation by facilitating trade, encouraging investment, expanding services, and promoting talent mobility.
Growing Market for Indian Textile Exports
Although New Zealand has a relatively small population of around five million, it imports the majority of its textile and apparel products. The country’s textile and clothing import market is estimated at approximately US$2 billion annually, with apparel accounting for nearly 65% of total imports.
Apparel imports alone are valued at approximately US$1.2 billion, covering a broad range of products including knitwear, casual wear, jackets, sportswear, formal clothing, and home textiles.
Despite India’s position as one of the world’s largest textile and apparel producers, its exports to New Zealand remain relatively modest at around US$100 million, indicating considerable potential for future growth.
Opportunity to Expand Market Share
China currently dominates New Zealand’s textile and apparel imports, supplying a wide variety of clothing products including T-shirts, knitwear, sweaters, jackets, and casual apparel. Bangladesh has also established a strong presence, particularly in knitwear and basic garments.
The FTA is expected to improve India’s competitiveness and create new opportunities across several product categories, including:
- Ready-made garments, particularly cotton apparel, knitwear, and woven clothing
- Home textiles such as bed linen, towels, curtains, and furnishing fabrics
- Sustainable and recycled textile products
- Cotton-based value-added textiles
- Wool blends and premium textile products by leveraging New Zealand’s strong wool sector
Strategic Partnership to Boost Bilateral Trade
During an address to business leaders in Auckland, Prime Minister Modi highlighted India’s rapidly growing economy, skilled workforce, expanding digital ecosystem, and infrastructure development as attractive opportunities for New Zealand investors.
The two countries have upgraded their relationship to a Strategic Partnership and have set an ambitious goal of doubling bilateral trade to NZD 7 billion by 2030.
In addition, New Zealand has announced plans to invest US$20 billion in India over the next 15 years, supporting collaboration across manufacturing, infrastructure, technology, and innovation.
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Positive Outlook for India’s Textile Sector
The agreement comes at an important time for India’s textile industry as manufacturers seek to diversify export markets and strengthen global supply chains. With international buyers increasingly prioritizing reliable, sustainable, and transparent sourcing partners, the India-New Zealand FTA is expected to enhance India’s position in a market currently dominated by China and Bangladesh.
Although New Zealand represents a relatively small consumer market, its annual US$2 billion textile import demand offers substantial growth potential for Indian exporters. Industry stakeholders believe the agreement will help increase market access, encourage long-term business partnerships, and support the continued expansion of India’s global textile and apparel exports.
