The Southern India Mills’ Association (SIMA) has welcomed the successful conclusion of the India–New Zealand Free Trade Agreement (FTA), terming it a landmark development that will open new growth avenues for the Indian textile and apparel industry.
India’s textiles and clothing sector is the second-largest producer and consumer of cotton globally and the second-largest employer after agriculture, with nearly 80 per cent of installed capacity in the MSME segment. The country also ranks as the sixth-largest textile and apparel market in the world. The industry’s growth momentum has already been strengthened by the recently concluded India–UK FTA, which is expected to improve market access and enhance global competitiveness.
To ensure sustained growth, the Government of India has introduced several 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 key stakeholders, and the launch of a Mission for Cotton Productivity to focus on productivity improvement, quality enhancement, contamination control and long-term sustainability.
With an ambitious target of achieving a USD 350 billion business size by 2030, the industry is pursuing parallel efforts to ensure adequate availability of quality raw materials while expanding India’s global footprint through diversified export markets and a stronger emphasis on value-added products.
In a press release, Mr. Durai Palanisamy, Chairman, SIMA, expressed his deep appreciation to the Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Minister of Commerce & Industry Shri Piyush Goyal, and Hon’ble Minister of Textiles Shri Giriraj Singh for their leadership in securing the landmark India–New Zealand FTA. He noted that the agreement provides a major boost to the textile sector by ensuring zero-duty access for Indian products.
India’s textile and apparel exports stood at USD 36.9 billion in 2024–25, while exports to New Zealand reached USD 103 million. With New Zealand’s annual global textile imports valued at around USD 1.9 billion, SIMA expects this trade to grow at a faster pace following the FTA.
Mr. Durai stated that the agreement will significantly improve duty-free market access for Indian textiles and clothing in New Zealand, enhancing competitiveness and enabling export diversification at a time when global textile trade is facing volatility and demand uncertainties.
He further highlighted that New Zealand, being a developed market with stable demand and high standards, offers strong opportunities for Indian manufacturers to expand in value-added segments such as fabrics, garments, and made-ups/home textiles.
SIMA also expressed confidence that the FTA will contribute to employment generation, better capacity utilisation and sustained industry growth, allowing the textile sector to fully capitalise on the opportunities created by this landmark agreement.