SIMA hails India–New Zealand FTA as major boost for Textile exports

The Southern India Mills’ Association has welcomed the successful conclusion of the India–New Zealand Free Trade Agreement, describing it as a timely and significant step that will strengthen the global competitiveness of the Indian textile and apparel industry. India’s textiles and clothing sector is the second-largest producer and consumer of cotton in the world and the second-largest employer after agriculture, with nearly 80 per cent of its installed capacity located in the MSME segment. India is also the world’s sixth-largest textile and apparel market. The sector’s growth momentum has already been reinforced by the recently concluded India–UK Free Trade Agreement, which is expected to improve market access and competitiveness for Indian textile products.
To support sustained growth, the Union Government has rolled out a series of policy initiatives to address long-standing structural challenges across the textile value chain. These include the formation of a Cost Control Committee, a Cotton Think Tank with representation from all key stakeholders, and the launch of a Mission for Cotton Productivity focusing on productivity improvement, quality enhancement, contamination control and long-term sustainability.
SIMA noted that achieving the targeted business size of USD 350 billion by 2030 will require consistent efforts to ensure the availability of quality raw materials, along with the expansion of India’s global market presence through diversified export destinations and greater emphasis on value-added products. In a press release issued here on Monday, SIMA Chairman Durai Palanisamy thanked Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal and Textiles Minister Giriraj Singh for what he termed a landmark and path-breaking achievement in concluding the India–New Zealand Free Trade Agreement. He said the agreement gives a major thrust to the textile sector by securing zero-duty access to the New Zealand market.
India’s textile and apparel exports stood at USD 36.9 billion in 2024–25, while exports to New Zealand touched USD 103 million. This is expected to grow further, considering that New Zealand’s annual textile imports from across the world are valued at around USD 1.9 billion, the SIMA chairman said.
Welcoming the agreement, Mr. Palanisamy said the FTA would significantly enhance opportunities for Indian textile and apparel exporters by providing improved duty-free market access in New Zealand. He added that the agreement would also aid diversification of export destinations at a time when the global textile trade is facing volatility and demand uncertainty. He pointed out that New Zealand, being a developed market with stable demand and high standards, offers strong potential for Indian manufacturers to expand their presence in value-added segments such as fabrics, garments and made-ups, including home textiles. The SIMA chairman said the agreement is expected to contribute to employment generation, improved capacity utilisation and sustained growth in the textile sector, enabling the industry to fully capitalise on the opportunities arising from this important trade pact.