New Zealand and India are set to formally sign their long-awaited Free Trade Agreement (FTA) on April 27 in New Delhi, marking a significant step forward in bilateral trade ties, with notable implications for the textile and apparel sectors.

Confirming the development, Trade and Investment Minister Todd McClay said the agreement has completed legal verification and will unlock access to India’s vast consumer market of over 1.4 billion people. The deal, concluded in December, is being positioned as a transformative opportunity for exporters across industries, including textiles.

Under the agreement, tariffs on nearly 95% of New Zealand exports to India will be reduced or eliminated, one of the most comprehensive outcomes secured by India in any trade pact. For the textile value chain, this is expected to benefit exports of wool, fibres and related raw materials, which form a key input for India’s manufacturing ecosystem. A significant portion of these goods will become duty-free immediately, with further phased reductions over time.

The agreement is also expected to enhance competitiveness for New Zealand’s wool and fibre exports, enabling them to compete more effectively in India’s price-sensitive market. In turn, Indian textile manufacturers, especially in segments such as knitwear, home textiles and technical textiles, could benefit from improved access to high-quality raw materials at lower costs.

McClay emphasised that the FTA would help create a level playing field for exporters, particularly in sectors where other countries already enjoy preferential tariff access in India. He noted that the agreement would strengthen supply chain linkages and open new avenues for collaboration in value-added textile production.

Beyond tariffs, the pact includes provisions facilitating the temporary movement of skilled workers, which could support knowledge exchange and technical collaboration in textile manufacturing and processing.

The signing will initiate New Zealand’s parliamentary approval process, where the agreement will undergo scrutiny, including a national interest assessment and public consultation before ratification.

Industry stakeholders have largely welcomed the pact, citing strong growth potential. If ratified, the agreement is expected to generate substantial export gains, while also strengthening textile trade linkages between the two countries through improved raw material flows and expanded market access.