The Southern India Mills’ Association (SIMA) has welcomed the successful conclusion of the India–New Zealand Free Trade Agreement (FTA), calling it a timely and significant development that will strengthen the global competitiveness of India’s textile and apparel industry.
India’s textiles and clothing sector is the world’s second-largest producer and consumer of cotton and the second-largest employer after agriculture, with nearly 80 per cent of installed capacity concentrated in the MSME segment. India is also the sixth-largest textile and apparel market globally. According to SIMA, the sector’s growth momentum has already been reinforced by the recently concluded India–UK FTA, which is expected to improve market access and competitiveness for Indian textile products.
To support sustained growth, the Union Government has rolled out several policy initiatives to address long-standing structural challenges across the textile value chain. These include the formation of a Cost Control Committee, the establishment of a Cotton Think Tank with representation from all key stakeholders, and the launch of a Mission for Cotton Productivity focused on improving productivity, enhancing quality, controlling contamination and ensuring long-term sustainability.
SIMA noted that achieving the targeted industry size of USD 350 billion by 2030 will require consistent efforts to ensure the availability of quality raw materials, expand India’s global market footprint through diversified export destinations, and place greater emphasis on value-added products.
In a press release issued on Monday, SIMA Chairman Durai Palanisamy thanked Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal, and Textiles Minister Giriraj Singh for what he described as a landmark and path-breaking achievement in concluding the India–New Zealand FTA. He said the agreement provides a major boost to the textile sector by securing zero-duty access to the New Zealand market.
India’s textile and apparel exports stood at USD 36.9 billion in 2024–25, while exports to New Zealand were valued at USD 103 million. This figure is expected to rise, given that New Zealand’s annual textile imports from around the world are estimated at about USD 1.9 billion, Mr. Palanisamy said.
Welcoming the agreement, he added that the FTA would significantly enhance opportunities for Indian exporters by offering improved duty-free market access in New Zealand. It would also support diversification of export destinations at a time when global textile trade is facing volatility and demand uncertainty.
Mr. Palanisamy pointed out that New Zealand, as a developed market with stable demand and high standards, offers strong potential for Indian manufacturers to expand their presence in value-added segments such as fabrics, garments and made-ups, including home textiles. The agreement is expected to contribute to employment generation, improved capacity utilisation and sustained growth in the textile sector, enabling the industry to fully capitalise on opportunities arising from the new trade pact.
