President's Message

President's Message

K. M. Subramanian

 

INDIA NEW ZEALAND FREE TRADE AGREEMENT

The India–New Zealand Free Trade Agreement (FTA), was signed between Hon’ble Minister for Commerce & Industry, Government of India Shri Piyush Goyal and Hon. Todd McClay, Minister for Trade and Investment, New Zealand on 27th April, 2026.

The forward-looking agreement is a major boost for India’s apparel exporters. With 100% duty-free access to the New Zealand market, Indian products will gain immediate price competitiveness, particularly in labour-intensive segments such as garments and textiles. This will support higher export volumes, job creation, and growth of MSMEs across the value chain.

New Zealand imports over USD 1.2 billion worth of ready-made garments annually, with India currently holding a share of mere 4.4%. The FTA presents a strong opportunity to significantly enhance India’s presence in this market, especially in key categories such as cotton T-shirts, shirts, knitwear, and garments.

The textiles and clothing sector, being one of the largest employment generators in the country, stands to benefit immensely from this agreement. It will strengthen India’s position as a reliable sourcing destination and drive sustainable export growth. The trade deal has the potential to treble India’s ready-made garment (RMG) exports to New Zealand within the next two years, driven by improved market access and competitive pricing.

The FTA aligns well with India’s strengths in cotton-based apparel and offers scope for diversification into man-made fibre segments to better match New Zealand’s import demand trends.

I would like to place on record our gratitude to Hon’ble Prime Minister Shri. Narendra Modi and Hon’ble Minister for Commerce & Industry Shri. Piyush Goyal for signing the Free Trade Agreement which is a significant milestone that will unlock new growth opportunities for India’s textile and apparel sector.