Marking a strategic pivot for India’s textile and apparel (T&A) apparel, the India–New Zealand Free Trade Agreement (FTA) enables Indian exporters to dismantle the 10 per cent duty wall that previously favored competitors like Bangladesh and China by securing zero-duty access across 1,057 tariff lines.
Industry experts at the Confederation of Indian Textile Industry (CITI) anticipate, the price competitiveness gained from this deal will be the primary driver in closing the current $1.7 billion export gap in New Zealand's apparel market.
Supply chain efficiency and raw material synergy
Beyond finished goods, the agreement introduces a unique ‘cost-down’ model for Indian mills. By eliminating duties on critical manufacturing inputs like coking coal and wooden logs from New Zealand, the FTA directly reduces the overhead for domestic spinning and weaving units. This structural relief is boosted by a $20 billion FDI commitment from Wellington, aimed at injecting modern technology into Indian MSME clusters. As India pushes toward its $100 billion textile export target for 2030, this deal serves as a blueprint for ‘Viksit Bharat 2047,’ integrating local artisans into global value chains through enhanced digital compliance and faster customs clearance.
India is the world's second-largest manufacturer of textiles and apparel, with a domestic market currently valued at over $180 billion and projected to reach $350 billion by 2030. The industry excels in natural fibers (cotton, jute, silk) and is rapidly expanding into technical textiles and man-made fibers (MMF) through the PLI scheme.
