Key insights

• India secures 100% duty-free access for textile and apparel exports to New Zealand.
• Tariff removal enhances competitiveness in a high-value, quality-driven market.
• Agreement supports India’s $350 billion textile sector target by 2030.
• New Zealand commits $20 billion in investment in India over 15 years.
• Strong potential in sustainable textiles, home textiles, and technical textiles.

India has taken a major step toward strengthening its global textile trade by signing a landmark Free Trade Agreement with New Zealand. The agreement removes tariffs on 100 percent of Indian exports, including textiles and apparel, creating a strong opportunity for exporters to expand into a high-income and quality-conscious market.

The deal was signed in New Delhi in the presence of Piyush Goyal, Minister of Commerce and Industry of India, and Todd McClay, Minister for Trade and Investment of New Zealand. It marks a significant shift in India’s trade strategy, focusing on market diversification and value-added exports.

Under the agreement, Indian textile and clothing exports that previously faced tariffs of up to 10 percent will now enter New Zealand duty-free. Around 450 tariff lines have been liberalized, covering key categories such as garments, carpets, leather goods, and home textiles.

This immediate tariff removal is expected to enhance price competitiveness for Indian exporters, particularly in labor-intensive segments.

According to the Confederation of Indian Textile Industry, the FTA will support India’s transition toward higher-value textile exports. New Zealand imported Indian-made textile articles worth approximately NZ$80.22 million in 2025, indicating a growing demand base.

Industry leaders believe the agreement will accelerate India’s move up the value chain, especially in segments such as sustainable textiles, technical textiles, and premium home furnishings. The country’s access to New Zealand’s high-quality wool also opens new opportunities for producing high-end garments for global markets.

A key highlight of the agreement is New Zealand’s commitment to facilitate $20 billion in investment into India over the next 15 years. These investments will target sectors such as manufacturing, clean energy, agritech, and food processing.The agreement also emphasizes supply chain integration, technology transfer, and skill development. This aligns with India’s broader goal of strengthening its position in global value chains and reducing dependency on limited export markets.

The FTA introduces several trade facilitation measures aimed at improving efficiency. These include faster customs clearance within 24 to 48 hours, paperless documentation systems, and single-window processes.

India’s textile and apparel sector, one of the country’s largest employers, is targeting $100 billion in exports as part of a broader $350 billion industry vision by 2030. The FTA with New Zealand is expected to play a strategic role in achieving this goal.

Beyond immediate export gains, the agreement strengthens India’s positioning in premium markets and reinforces its ability to compete on both quality and price.

As global trade dynamics continue to shift, this agreement signals India’s intent to build resilient, diversified, and value-driven textile exports, creating long-term opportunities for manufacturers, MSMEs, and workers across the value chain.