The India-New Zealand FTA (Free Trade Agreement) was signed on 27 April, 2026 in New Delhi. The Ministry of Textiles welcomes the landmark trade agreement, reflecting a future ready partnership built on trust , growth and shared prosperity.
The New Zealand market provides an opportunity for India’s exports of textiles, apparel and madeups. New Zealand’s global imports in these three sub categories is $0.33 billion, $1.27 billion and $0.33 billion respectively. With a population of 5.3 million, concentrated around large urban centres and around a $52,000 per capita income, there is immense scope for high value exports.
The apparel sector comprises 65% share of global imports of New Zealand. The key sub sectors of imports under the apparel sector are casual wear (jeans, T-shirts, hoodies, relaxed tops, casual dresses), jackets, formal wear and sports wear. Cotton apparel comprises 45% of these imports followed by MMF at 36%.
Currently, New Zealand has 575 dutiable MFN tariff lines with a 5% duty on some wool, MMF and madeups and a 10% duty on carpets, some MMF and apparel. Hence an FTA would lower the cost of Indian exports.
India’s bilateral exports to New Zealand stand at $0.65 billion, with the textiles sector accounting for $0.1 billion. Under the India-New Zealand FTA, India’s exports in textiles, apparel, and made-ups to New Zealand are expected to gain further momentum, building on the positive trend seen over the last decade. Growth has been recorded across all sub-sectors, including apparel, made-ups, carpets, fibre, yarn, and fabrics. Based on these trends and the opportunities created by the India-New Zealand FTA, key potential growth areas for Indian exports include apparel (MMF, jute, linen, wool), made-ups (MMF, jute, linen), carpets (MMF), fibres (MMF, silk), yarn (MMF, cotton), fabrics (wool, jute, linen), as well as handicrafts and handloom products.
The India-New Zealand FTA also opens up the door to collaborate with textile design houses and fashion technology institutes. There is a need to leverage this FTA by participating in major textile fairs and exhibitions. New Zealand remains an important market and the FTA would enable India to enhance its exports.
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