India–New Zealand FTA Opens Zero-Duty Window For Indian Textiles And Apparel
The newly concluded India–New Zealand Free Trade Agreement (FTA) is set to deliver a major boost to India’s textile and apparel exports, offering 100 percent duty-free access to the New Zealand market and strengthening India’s position in the Oceania region’s apparel and home textile supply chains.
Under the agreement, New Zealand will eliminate tariffs on all Indian exports across 8,284 tariff lines from the date of implementation. For the textile and clothing sector, this means complete duty removal on over 1,000 tariff lines, covering yarns, fabrics, made-ups and garments that earlier attracted duties of up to 10 percent.
India’s textile exports to New Zealand are currently valued at approximately US$ 160–180 million annually, while New Zealand’s total textile and apparel imports average nearly US$ 2 billion per year. The FTA significantly enhances India’s price competitiveness against suppliers such as China, Vietnam and Bangladesh, particularly in apparel, home textiles and value-added made-ups.
Labour-intensive segments including readymade garments, cotton and blended fabrics, technical textiles, carpets and made-ups are expected to benefit the most. Duty-free access is also expected to accelerate sourcing diversification by New Zealand retailers seeking reliable, compliant and sustainable supply chains.
The agreement protects India’s sensitive agricultural sectors, including dairy and select farm products, ensuring that liberalisation in textiles does not come at the cost of domestic farm stability. Nearly 30 percent of tariff lines remain excluded from concessions, reflecting a calibrated and sector-sensitive approach.
Beyond tariffs, the FTA strengthens services and mobility provisions, which are expected to indirectly benefit the textile value chain. Indian design professionals, quality auditors, engineers, technicians and supply-chain specialists will gain improved access to New Zealand through expanded visa pathways. This is likely to support closer collaboration between Indian manufacturers and New Zealand brands on product development, compliance and sustainability.
The agreement also improves customs facilitation and regulatory transparency, with commitments on advance rulings, electronic documentation and faster clearance timelines—critical factors for textile exporters operating on tight lead times and seasonal delivery schedules.
From a strategic perspective, the India–New Zealand FTA complements India’s existing trade agreements with Australia, the UK (under negotiation), the UAE and EFTA nations, positioning India as a preferred sourcing hub for apparel and home textiles across developed markets. The zero-duty regime is expected to particularly benefit MSMEs, which form the backbone of India’s textile export ecosystem.
Industry stakeholders believe the agreement could double India’s textile exports to New Zealand over the next five years, supported by competitive pricing, diversified product offerings and rising demand for ethically produced and sustainable textiles.
As global buyers increasingly rebalance sourcing strategies, the India–New Zealand FTA provides Indian textile manufacturers with a timely opportunity to deepen their presence in the Oceania market while moving up the value chain.
