India-New Zealand FTA to boost India’s textile, apparel and made-up sectors: Govt

Welcoming the signing of the India-New Zealand Free Trade Agreement (FTA), the Ministry of Textiles has said that New Zealand remains an important market and the FTA with the nation would enable India to enhance its exports of textiles, apparel and made-ups. The FTA also opens up the door to collaborate with textile design houses and fashion technology institutes. It said there is a need to leverage this FTA by participating in major textile fairs and exhibitions.

The ministry stated that the apparel sector comprises 65% share of global imports of New Zealand. The key sub-sectors of imports under the apparel sector are casual wear (jeans, T-shirts, hoodies, relaxed tops, casual dresses), jackets, formal wear and sports wear. Cotton apparel comprises 45% of these imports, followed by man-made fibre (MMF) at 36%.

It further said that currently, New Zealand has 575 dutiable MFN tariff lines with a 5% duty on some wool, MMF and made-ups and a 10% duty on carpets, some MMF and apparel. Hence, an FTA would lower the cost of Indian exports. India's exports in the textiles, apparel and made-up sector to New Zealand has shown a positive trend over the last decade. Positive growth was shown in all sub-sectors, namely apparel, made-ups, carpets, fibre, yarn, and fabrics.