India–New Zealand FTA to boost Indian textile exports

The proposed India–New Zealand Free Trade Agreement (FTA) is expected to significantly strengthen Indian exports, as New Zealand has agreed to provide zero-duty market access on all its tariff lines for Indian goods from the date the agreement comes into effect.

New Zealand will remove tariffs of up to 10 percent on textiles and clothing, offering Indian exporters duty-free access across 1,057 tariff lines. In 2024, India was the third-largest exporter of textiles and apparel to New Zealand, after China and Bangladesh, with exports valued at US $138.65 million. The leather and footwear sector is also expected to see gains, with tariffs eliminated across 181 tariff lines.

The Confederation of Indian Textile Industry (CITI) welcomed the conclusion of the FTA negotiations. CITI Chairman Ashwin Chandran said the agreement, which follows the recent signing of the Comprehensive Economic Partnership Agreement between India and Oman, reflects India’s efforts to diversify its trade and services markets. He added that the FTA would expand market access for the textile and apparel sector and encourage the industry to broaden its product range to build stronger ties with new trade partners.

Chandran further noted that the India–New Zealand FTA would support Indian textile and apparel exporters seeking to reduce dependence on a small number of markets. He said the agreement would improve the price competitiveness and appeal of Indian products for both current and future buyers in New Zealand.