New Zealand FTA Opens Indian Wool to Import Competition

· Landmark Opportunity for Textiles: The India–New Zealand Free Trade Agreement is expected to significantly expand export opportunities for India’s textiles, apparel and made-ups sectors through improved market access and lower tariffs.

· High-Value Export Market Opens Up: New Zealand, with a population of 5.3 million and high per capita income of about US$52,000, offers strong demand potential for premium Indian textile products.

· Large Import Market for Indian Products: New Zealand’s imports in key textile segments include approximately US$330 million in textiles, US$1.27 billion in apparel, and US$330 million in made-ups, creating significant room for export growth.

· Apparel Segment Offers Strongest Potential: Apparel accounts for 65% of New Zealand’s textile imports, with major opportunities in casual wear, jackets, formal wear and sportswear.

· Scope in Cotton and MMF Products: Cotton apparel represents 45% of New Zealand’s apparel imports, followed by man-made fibre (MMF) products at 36%, presenting strong opportunities for Indian exporters.

· Tariff Elimination Improves Competitiveness: The FTA removes or reduces existing 5–10% tariffs on wool, MMF products, made-ups, carpets and apparel, lowering costs and improving the competitiveness of Indian exports.

· Textiles Already Key in Bilateral Trade: Of India’s US$650 million exports to New Zealand, textiles contribute around US$100 million, providing a solid base for expansion.

· Growth Across Multiple Segments: Indian textile exports to New Zealand have shown positive growth across apparel, made-ups, carpets, fibres, yarn and fabrics over the past decade.

· Potential High-Growth Export Segments Identified: Key sectors expected to benefit include:

o MMF, jute, linen and wool apparel

o Made-ups in MMF, jute and linen

o MMF carpets

o Silk and MMF fibres

o Cotton and MMF yarn

o Wool, jute and linen fabrics

o Handicrafts and handloom products

· Boost for Labour-Intensive Sectors: The agreement is expected to support employment and competitiveness in labour-intensive textile value chains, benefiting MSMEs and artisan-based sectors.

· Collaboration Beyond Trade: The FTA also opens avenues for partnerships with New Zealand textile design houses and fashion technology institutes, encouraging innovation and design-led growth.

· Scope Through Trade Fairs and Branding: Indian industry is encouraged to leverage the agreement through participation in major textile fairs and exhibitions to expand market presence.

· Strategic Export Diversification Opportunity: The pact strengthens India’s access to a developed niche market and supports export diversification under a broader Indo-Pacific trade strategy.

[ABS News Service/28.04.2026]

The India New Zealand Free Trade Agreement (FTA) was signed on 27 April, 2026 in New Delhi. The Ministry of Textiles welcomes the landmark trade agreement, reflecting a future ready partnership built on trust, growth and shared prosperity.

The New Zealand market provides an opportunity for India’s exports of textiles, apparel and madeups. New Zealand’s global imports in these three sub categories is $0.33 billion, $1.27 billion and $0.33 billion respectively. With a population of 5.3 million, concentrated around large urban centres and around a $52,000 per capita income, there is immense scope for high value exports.

The apparel sector comprises 65% share of global imports of New Zealand. The key sub sectors of imports under the apparel sector are casual wear (jeans, T-shirts, hoodies, relaxed tops, casual dresses), jackets, formal wear and sports wear. Cotton apparel comprises 45% of these imports followed by MMF at 36%.

Currently, New Zealand has 575 dutiable MFN tariff lines with a 5% duty on some wool, MMF and madeups and a 10% duty on carpets, some MMF and apparel. Hence an FTA would lower the cost of Indian exports.

India’s bilateral exports to New Zealand stands at $0.65 billion with the textiles sector accounting for $0.1billion. India’s exports in the textiles, apparel and made up sector to New Zealand has shown a positive trend over the last decade. Positive growth was shown in all the sub sectors namely apparel, made ups, carpets, fibre, yarn and fabrics. Based on the trends in the sector, some of the potential areas of growth in the sector for Indian exports are apparel (MMF,jute, linen,wool), Madeups (MMF, Jute,linen), Carpets (MMF), fibres (MMF, silk), yarn (MMF, cotton), Fabric (wool,jute,linen), handicraft and handloom.

The FTA also opens up the door to collaborate with textile design houses and fashion technology institutes. There is a need to leverage this FTA by participating in major textile fairs and exhibitions. New Zealand remains an important market and the FTA would enable India to enhance its exports.