FTA Provides New Opportunity for Export Sectors to Diversify
The FTA will provide zero-duty market access to 100 per cent of India’s exports
Chennai: India-New Zealand FTA will provide Indian exporters another market to diversify when the US market has become significantly competitive due to tariffs.
The FTA will provide zero-duty market access to 100 per cent of India’s exports. Indian apparels and textiles have been facing up to 10 per cent tariffs. In 2024, India was the 3rd largest exporter of textile and apparel products to New Zealand, after China and Bangladesh. India’s textile and apparel exports to New Zealand stood at $138.65 million in 2024. However, India has just 7.2 per cent share in New Zealand’s textile imports, which stood at $1.9 billion in 2024.
“Coming less than a week after the signing of the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman, the conclusion of the FTA negotiations between India and New Zealand shows India’s focus on market diversification for trade and services. For the textile and apparel sector, this surely means more market access opportunities. The industry will need to look at diversification of its product basket for deeper engagement with these new FTA partners,” said Ashwin Chandran, chairman of Confederation of Indian Textile Industry (CITI).
The Southern India Mills’ Association finds that New Zealand being an important developed market with high standards and stable demand, the FTA would enable Indian manufacturers to strengthen their presence in value-added segments such as fabrics, garments and made ups, including home textiles.
India’s textile and apparel exports stood close to $38 billion in the financial year 2024-25. In July, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. India is also in advanced stages of FTA-related discussions with the European Union, among others to diversify its market.
Meanwhile, engineering goods exporters find that the FTA is expected to benefit several industries including automobiles and auto components and capital goods and industrial machinery. “Over the next five years, engineering exports to New Zealand are projected to double, reflecting strong future growth,” said Pankaj Chadha, chairman, EEPC.