India and New Zealand have signed a landmark Free Trade Agreement (FTA), marking a major milestone for bilateral trade and opening significant opportunities for India’s powerloom and textile sectors. The agreement, signed under the leadership of Narendra Modi, is expected to strengthen export potential and enhance global competitiveness.
A key highlight of the agreement is the provision of 100% duty-free market access for Indian exporters across all tariff lines. This creates substantial opportunities for powerloom fabrics, home textiles, made-ups, and apparel to enter the New Zealand market without trade barriers.
Beyond goods, the FTA also expands cooperation across services, mobility, education, healthcare, and traditional medicine. Additionally, New Zealand’s long-term commitment of USD 20 billion is expected to support India’s industrial development, innovation, infrastructure growth, and employment generation across multiple sectors.
Commenting on the development, K. Sakthivel, Chairman of PDEXCIL, stated:
“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 exporters-this agreement is a true breakthrough. The 100% duty-free access means our weavers, manufacturers and exporters can now reach New Zealand’s markets with greater confidence and competitiveness. I am particularly encouraged that India has stood firm on protecting its core interests, reflecting a deal that is both ambitious and responsible. New Zealand’s USD 20 billion long-term commitment further underlines deep confidence in India’s growth story. PDEXCIL and our entire powerloom community wholeheartedly welcome this landmark agreement and pledge our full support in maximizing its potential for our exporters, our weavers and nation.”
The agreement is widely seen as a transformative step for India’s textile ecosystem, particularly the powerloom sector, which plays a crucial role in exports. With improved market access and stronger bilateral ties, the FTA is expected to accelerate growth and expand India’s presence in global textile trade.