India–New Zealand FTA Boosts Textile Exports

India and New Zealand have signed a revolutionary FTA, marking a significant step in deepening bilateral economic ties and unlocking new opportunities across goods, services, investment and talent mobility. The agreement was signed today at Bharat Mandapam by Piyush Goyal and Todd McClay.

Describing the pact as a once-in-a-generation opportunity, McClay said it would boost exports, create jobs and strengthen economic ties. Goyal termed it a defining milestone, aligned with India’s vision of building global partnerships that empower MSMEs, farmers, women and youth.

A key highlight of the agreement is 100% duty-free market access for Indian exports to New Zealand across all tariff lines from the date of implementation. This is expected to significantly benefit labour-intensive sectors such as textiles, apparel, leather, footwear, engineering goods and processed foods enhancing India’s competitiveness in a developed market.

The agreement also includes a US$ 20 billion investment commitment from New Zealand into India, targeting agriculture, infrastructure, manufacturing, startups and emerging technologies. This is expected to further strengthen India’s growth trajectory and innovation ecosystem.

On the services front, New Zealand has offered market access across 118 sectors, along with Most-Favoured Nation commitments in 139 sub-sectors. The pact also creates new pathways for skilled professionals, including a dedicated quota of 5,000 temporary work visas and expanded post-study work rights for Indian students.

The agreement balances market access with domestic safeguards, with India offering tariff liberalisation on around 70% of tariff lines while protecting sensitive sectors such as dairy and key agricultural products.

K. Sakthivel, Chairman of Powerloom Development and Export Promotion Council (PDEXCIL)

From a textile industry perspective, the development has been widely welcomed. K. Sakthivel, Chairman of Powerloom Development and Export Promotion Council (PDEXCIL), termed the FTA a transformative opportunity for India’s powerloom and textile sector.

“The India–New Zealand FTA is a bold and visionary step by the Government of India. For our powerloom industry, the backbone of India’s textile exports—this agreement is a true breakthrough,” Sakthivel said. “With 100% duty-free access, our weavers, manufacturers, and exporters can now enter New Zealand’s market with greater confidence and competitiveness.”

He added that the agreement opens new avenues for powerloom fabrics, home textiles, made-ups and apparel, while also reflecting a balanced approach. “India has protected its core interests, making this an ambitious yet responsible deal. The US$ 20 billion long-term investment commitment further underlines global confidence in India’s growth story.”

Sakthivel affirmed that PDEXCIL and the broader powerloom community would actively work to maximise the benefits of the agreement for exporters and weavers.

Beyond goods, the FTA strengthens supply chains through duty-free access to key inputs and enhances trade facilitation with faster customs processes and digital systems. It also includes cooperation in agriculture productivity, innovation and traditional knowledge systems, including AYUSH.

With bilateral trade currently at around US$ 2.4 billion, the agreement is expected to significantly accelerate trade flows, improve market access and position India more strongly within global value chains, particularly benefiting labour-intensive sectors such as textiles.