The Southern India Mills’ Association (SIMA) has welcomed the India–New Zealand Free Trade Agreement (FTA), describing it as a significant opportunity to expand India’s textile exports and strengthen its global market presence.
Amid ongoing geopolitical challenges, including disruptions linked to the Middle East crisis, the Indian textile sector has been supported by proactive government measures aimed at maintaining stability and competitiveness. These include timely interventions to address supply chain and logistics challenges.
The Government of India has also encouraged the industry to deepen its presence in established markets while exploring new geographies, diversifying product offerings, and focusing on value addition. In line with this strategy, India has signed multiple FTAs with emerging economies, with the India–New Zealand agreement being a key milestone.
Durai Palanisamy, Chairman of SIMA, expressed appreciation to the government leadership for successfully concluding the agreement on April 27, 2026. He noted that the FTA is expected to significantly boost India’s textile and apparel exports to New Zealand.
The agreement provides 100% duty-free access for Indian textile products, including apparel, home textiles, and made-ups, enhancing competitiveness and enabling growth across the value chain. Additionally, MFN-equivalent benefits under the agreement ensure fair market access for Indian exporters.
New Zealand’s textile imports stood at approximately USD 1.9 billion annually between 2023 and 2025, with India maintaining a consistent share of around 7%. India’s bilateral exports to New Zealand are currently valued at about USD 0.65 billion, with textiles contributing nearly USD 0.1 billion. The FTA is expected to accelerate growth across all segments, including yarn, fabric, apparel, and fibre.
SIMA highlighted that the agreement aligns with India’s long-term vision of becoming a developed economy under the “Viksit Bharat 2047” initiative, while also supporting the target of achieving a USD 350 billion textile market by 2030.
The association also acknowledged the efforts of key ministries in securing trade agreements with major global markets, emphasizing that such initiatives are critical for providing real and sustainable market access.
SIMA expressed confidence that the India–New Zealand FTA will strengthen bilateral trade, unlock new growth opportunities, and generate employment across the labour-intensive textile sector.