Proposed FTA may boost India's textile, apparel exports to New Zealand

Indian Prime Minister Narendra Modi and his New Zealand counterpart, Christopher Luxon, held discussions on various issues in New Delhi during Luxon's official visit. Both nations announced the launch of negotiations for a comprehensive and mutually beneficial India-New Zealand Free Trade Agreement.

This significant step was marked by a meeting between Indian Minister for Commerce and Industry, Piyush Goyal, and New Zealand's Minister for Trade and Investment, Todd McClay, on Sunday. This meeting laid the foundation for a momentous partnership aimed at strengthening economic and trade ties between the two countries.

New Zealand is a consumer nation for textiles and apparel. Although India remains among the top five suppliers of textiles and apparel to New Zealand, its market penetration is limited, as China dominates the sector with a share of around 50 per cent.

New Zealand’s apparel imports from India increased slightly to $51.161 million in 2024, accounting for just 4.35 per cent of its total apparel imports of $1,177.404 million. India was the fourth-largest supplier, following China, Bangladesh, and Vietnam, whose combined market share exceeded 76 per cent. India's apparel exports to New Zealand were valued at $49.131 million in 2023 and $46.800 million in 2022, with respective market shares of 4.15 per cent and 3.67 per cent. New Zealand’s total apparel imports stood at $1,184.346 million in 2023 and $1,274.665 million in 2022, according to Fibre2Fashion's market insight tool TexPro.

These figures indicate that New Zealand is a significant apparel market, with China, Bangladesh, and Vietnam dominating the sector. As the FTA could provide tax-free access for several textile products, it may help Indian exporters increase their market share.

As per TexPro, New Zealand imported home textiles worth $52.586 million last year, while its total imports of these products were valued at $309.443 million. India was the second-largest supplier, with a market share of 16.99 per cent. China remained the top supplier, capturing 50 per cent of the market. India's inbound shipments of home textiles stood at $47.209 million (15.97 per cent) in 2023 and $47.909 million (11.76 per cent) in 2022.

New Zealand also imported fabric worth $75.821 million in 2024, of which $8.648 million came from India, representing 11.41 per cent of the total. China was the top supplier, holding a 30.50 per cent market share. New Zealand's fabric imports from India were valued at $9.515 million (10.75 per cent) in 2023 and $10.467 million (10.26 per cent) in 2022.

ALCHEMPro News Desk (KUL)