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How India just unlocked New Zealand's fashion market

In return, India has offered tariff concessions on about ** per cent of its tariff lines (covering ** per cent of New Zealand’s exports to India) while keeping sensitive sectors like dairy largely excluded. The agreement, concluded in late **** and expected to be formally signed in early ****, marks a historic milestone in India’s trade policy. It levels the playing field for Indian manufacturers in a developed market that was once relatively high-cost to serve.

For India’s textile and apparel (T&A) industry, the zero-duty access is a game-changer. Industry officials note that Indian apparel and textile exports previously faced tariff disadvantages in New Zealand, making them up to ** per cent more expensive than competitors’ products. Under the new FTA, those duties drop to * per cent, immediately reducing landed costs and boosting price competitiveness for Indian T&A goods. According to a government factsheet, New Zealand will provide “duty-free market access on all tariff lines, covering *** per cent of India’s current exports,” ensuring Indian products are instantly more competitive across labour-intensive sectors like textiles and clothing. This comprehensive tariff elimination is expected to energise trade flows (bilateral goods and services trade was a modest $*.* billion in ****) and unlock strong growth potential for both sides. New Zealand officials project their exports to India will rise significantly (with gains in horticulture, wood, wool and meat), while India’s major gains will be in textiles, apparel, engineering goods, leather and footwear among others. In short, the FTA’s tariff concessions set the stage for a win-win expansion of trade, with India’s textile and garment sector standing as one of the biggest beneficiaries.