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India-New Zealand FTA Opens US$ 2 Billion Textile Opportunity For Indian Exporters

• By  Textile Excellence
• July 28, 2026

India’s textile and apparel exporters are set to gain a new market opportunity as the India-New Zealand Free Trade Agreement (FTA) moves towards implementation, opening doors for higher exports, investment and supply chain partnerships.

Prime Minister Narendra Modi said the landmark agreement will add “depth and dynamism” to bilateral economic ties by improving market access, boosting investment, expanding services and enabling greater talent mobility.

For the textile industry, New Zealand represents a small but attractive opportunity. With a population of around 5 million, the country is highly dependent on imports for its clothing and textile requirements. Its textile and apparel import market is estimated at around US$ 2 billion annually, with apparel accounting for nearly 65% of imports.

New Zealand’s apparel imports alone are valued at around US$ 1.2 billion, covering products such as knitwear, casual wear, jackets, sportswear, formal clothing and home textiles.

However, India currently has only a limited presence in this market. Indian textile and apparel exports to New Zealand are estimated at around US$ 100 million, highlighting significant room for expansion.

China leads, India has room to grow

China remains the largest supplier of textiles and clothing to New Zealand, dominating categories such as T-shirts, knitwear, sweaters, jackets and casual apparel. Bangladesh has also built a strong position, particularly in basic garments and knitwear.

In comparison, India’s share remains relatively small despite its strengths in cotton textiles, garments and sustainable manufacturing.

The FTA could create fresh opportunities for Indian exporters in:

-Ready-made garments, particularly cotton apparel, knitwear and woven products

-Home textiles such as bed linen, towels and curtains

-Sustainable and recycled textile products

-Cotton-based value-added products

-Wool blends and premium textiles by leveraging New Zealand’s strong wool ecosystem

Strategic partnership gets bigger push

Addressing business leaders in Auckland, PM Modi highlighted India’s economic growth, skilled workforce, digital ecosystem and infrastructure expansion as major opportunities for New Zealand companies.

The two countries have upgraded relations to a Strategic Partnership and set a target of doubling bilateral trade to NZD 7 billion (around ₹35,000 crore) by 2030.

New Zealand has also committed to investing US$ 20 billion in India over the next 15 years, strengthening opportunities for collaboration across manufacturing, technology and infrastructure.

PM Modi invited New Zealand businesses to partner with India in areas including logistics, clean energy, digital economy and innovation.

For India’s textile sector, the agreement comes at a crucial time as exporters seek new markets and diversified supply chains. With global buyers increasingly looking for reliable, sustainable and transparent sourcing partners, the India-New Zealand FTA could help Indian manufacturers expand their footprint in a market where China and Bangladesh currently dominate.

The opportunity is clear: New Zealand may be a small market, but its nearly US$ 2 billion textile import demand offers significant headroom for India’s exporters.

Prime Minister Narendra Modi said the landmark agreement will add “depth and dynamism” to bilateral economic ties by improving market access, boosting investment, expanding services and enabling greater talent mobility. For the textile industry, New Zealand represents a small but attractive opportunity. With a population of around 5 million, the country is highly dependent on imports for its clothing and textile requirements. Its textile and apparel import market is estimated at around US$ 2 billion annually, with apparel accounting for nearly 65% of imports. New Zealand’s apparel imports alone are valued at around US$ 1.2 billion, covering products such as knitwear, casual wear, jackets, sportswear, formal clothing and home textiles.