India-NZ FTA seen boosting textile exports, aiding USD 350 bn sector target: CITI
New Delhi, April 27
The Free Trade Agreement between India and New Zealand is expected to provide a boost to India's textile exports and support the sector's aspiration of reaching USD 350 billion by 2030, the Confederation of Indian Textile Industry said.
According to Confederation of Indian Textile Industry, the FTA will strengthen efforts by textile and apparel exporters to reduce dependence on select markets and move up the value chain. The industry body said the agreement will provide duty-free access to Indian textiles in the New Zealand market.
CITI said "made-up textile articles" were the fourth-largest category of Indian imports into New Zealand in the year ended December 2025, citing data from New Zealand's Ministry of Foreign Affairs and Trade.
It added that New Zealand's imports of Indian made-up textile articles stood at NZ$80.22 million during the period.
CITI Chairman Ashwin Chandran said, "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."
Chandran added that New Zealand, being a high-income and quality-conscious market, can serve as a validation for Indian textile products in terms of quality and pricing. He noted that this could support exporters in scaling up the value chain and creating more jobs by leveraging multiple FTAs signed by India.
CITI said segments such as sustainable textiles, home textiles and technical textiles offer strong growth potential in the New Zealand market.
The industry body added that New Zealand's position as a major exporter of high-quality wool could help Indian companies import premium raw material and manufacture high-end garments for export.
India's textile and apparel sector is the country's second-largest employer and a key contributor to GDP and exports, with a target of reaching USD 100 billion in exports by 2030 as part of the broader USD 350 billion industry goal, CITI said.
— ANI
Reader Comments
Finally some positive news on trade front! 🌟 New Zealand is known for quality standards, so this is a big validation for Indian textiles. Our handloom sector especially has huge potential there. Let's hope we can hit that USD 350 billion target.
Job creation is what matters most. This FTA could help generate employment in textile hubs like Tirupur, Ludhiana, and Surat. But we must watch out for any hidden clauses that might hurt small-scale manufacturers. Competition is good, but not at the cost of our MSMEs.
Interesting point about New Zealand's wool exports. Indian companies can now access high-quality raw material for premium garments. Imagine the potential for luxury menswear or sportswear! 🧶 Just need proper supply chain management and quality control.
While this is positive, let's not forget we still face stiff competition from Bangladesh and Vietnam in global textile markets. This FTA alone won't solve everything. Need to modernise our spinning and weaving units urgently. Industry needs to invest in automation and sustainability.
Good initiative but I wonder about the actual volume. NZ market is small compared to EU or US. Hope this is a stepping stone to bigger FTAs. Also, textile waste and pollution are major concerns - we need eco-friendly production if we want to sell to quality-conscious markets like NZ.
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