The Indian textile industry has been navigating challenges arising from ongoing geopolitical developments, including the recent Middle East crisis. To ensure the sector remains resilient and competitive, the Government of India, under the visionary leadership of the Hon’ble Prime Minister, has extended continuous support through a range of proactive measures, including timely interventions to address logistics and supply chain disruptions.
A key advisory from the Ministry of Commerce to the industry has been to strengthen its presence in traditional export markets, while actively exploring new markets, diversifying the product mix and focusing on greater value addition. In line with this approach, the Government of India has, within a short span of time, entered into Free Trade Agreements (FTAs) with several fast-growing economies to ensure real and meaningful market access, further continuing to actively pursue similar agreements with other key partners.
In a press release issued today, Mr. Durai Palanisamy, Chairman of SIMA, expressed his sincere gratitude and appreciation to the Hon’ble Prime Minister and the Hon’ble Minister of Commerce & Industry for the successful signing of the India–New Zealand Free Trade Agreement (FTA) on 27.04.2026. He has stated that this landmark development is set to significantly strengthen India’s textile and apparel sector and enhance its presence in the New Zealand market.
Mr. Durai Palanisamy has emphasised that this historic agreement provides 100% duty-free access for Indian textile exports, including apparel, home textiles and made-ups to the New Zealand market, which in turn, is expected to drive growth across downstream sectors. He further noted that the extension of MFN-equivalent benefits under the FTA ensures a level playing field for Indian exporters and marks a significant step forward in enhancing meaningful market access.
On the textile front, New Zealand’s imports from the world stood at USD 1,904.45 million, USD 1,892.19 million, and USD 1,842.29 million during 2023, 2024, and 2025 respectively. Imports from India during the same period were USD 127.13 million, USD 138.53 million, and USD 131.80 million, with India’s share remaining steady at around 7%. As per data provided by the Union Ministry of Textiles, India’s bilateral exports to New Zealand currently stand at approximately USD 0.65 billion, with the textile sector contributing around USD 0.1 billion. The positive growth outlook across all sub-sectors including apparel, made-ups, fabric, yarn and fibre is expected to provide a significant boost to the industry.
SIMA Chief has stated that this agreement is well aligned with the Government of India’s vision of “Viksit Bharat 2047,” aimed at transforming India into a developed economy with a strong manufacturing and export base, while also paving the way for achieving the targeted textile and apparel market size of USD 350 billion by 2030.
Mr. Durai has also expressed his sincere appreciation to the Ministry of Finance, the Ministry of Commerce & Industry and the Ministry of Textiles for their concerted efforts in successfully concluding FTAs with key global markets. He noted that these agreements are instrumental in providing real market access for the Indian textile sector.
SIMA Chief has asserted that the industry is confident that the India–New Zealand FTA will further strengthen bilateral trade relations, open new avenues for sustained growth and generate significant employment opportunities in the labour-intensive textile sector.
