In a major boost to India’s textile industry, the Tiruppur Exporters Association (TEA) has welcomed the landmark Free Trade Agreement (FTA) signed between India and New Zealand, saying it will significantly enhance bilateral trade and create new avenues for investment and employment.
The agreement, signed by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, is being described as one of India’s fastest concluded bilateral trade deals. It is expected to deliver deep tariff cuts, improved market access, and stronger cooperation in services.
Following recent trade agreements with major economies such as the UK and the European Union, the pact further strengthens India’s global trade footprint. For the textile sector—particularly knitwear exporters—this marks a pivotal opportunity to expand presence in the New Zealand market.
India’s apparel and knitwear exports to New Zealand, currently valued at around $1.2 billion, are projected to double within the next two years, according to industry estimates. Exporters, especially from Tiruppur, which accounts for nearly 68 per cent of India’s knitwear exports, are optimistic about a sharp rise in demand.
The agreement is also expected to attract substantial foreign investment from New Zealand, with projections of up to $20 billion in the near term. Industry stakeholders believe this could generate significant employment opportunities, with Tiruppur emerging as a key beneficiary.
Exporters have termed the deal “historic,” noting that India’s growing network of FTAs—covering major markets such as the UK, USA, Oman, and Australia—now provides access to nearly 70 per cent of global markets. This is expected to drive higher exports and boost foreign exchange earnings.
To meet the anticipated surge in demand, industry leaders have called for enhanced capacity building, including modernisation of manufacturing facilities, development of high-capacity factories, and improved worker welfare through better housing and infrastructure.
Government initiatives such as the PM MITRA Parks and the modified ATUFS scheme are already supporting these efforts, aimed at strengthening India’s domestic manufacturing base and global competitiveness in apparel exports.
With global markets stabilising after recent geopolitical uncertainties, exporters are reporting a steady rise in inquiries and orders, signalling a positive outlook for India’s textile sector in the coming years.
