Textile sector gets a massive boost under India-New Zealand FTA: Textiles Ministry
New Zealand market provides an opportunity for India’s exports of textiles, apparel and madeups
As India-New Zealand signed FTA on Monday, the Ministry of Textiles has welcomed the landmark trade agreement, reflecting a future ready partnership built on trust, growth and shared prosperity.
Ministry of Textiles, on its official X handle, wrote, "India’s textile sector gets a massive boost under the India-New Zealand FTA. Zero-duty access for apparel, home textiles and handlooms means higher exports, more jobs for women and youth and stronger global value chain integration."
According to the statement issued by Textiles Ministry, New Zealand market provides an opportunity for India’s exports of textiles, apparel and madeups.
New Zealand’s global imports in these three sub categories is USD 0.33 billion, USD 1.27 billion and USD 0.33 billion respectively.
With a population of 5.3 million, concentrated around large urban centres and around a USD 52,000 per capita income, there is immense scope for high value exports.
The apparel sector comprises 65 per cent 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 sportswear. Cotton apparel comprises 45 per cent of these imports followed by MMF at 36 per cent.
Currently, New Zealand has 575 dutiable MFN tariff lines with a 5 per cent duty on some wool, MMF and made-up and a 10 per cent duty on carpets, some MMF and apparel. Hence an FTA would lower the cost of Indian exports.
India’s bilateral exports to New Zealand stands at USD 0.65 billion with the textiles sector accounting for USD 0.1billion. 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 the sub sectors namely apparel, made ups, carpets, fibre, yarn and fabrics.
Based on the trends in the sector, some of the potential areas of growth in the sector for Indian exports are apparel (MMF, jute, linen, wool), madeups (MMF, Jute, linen), carpets (MMF), fibres (MMF, silk), yarn (MMF, cotton), fabric (wool, jute, linen), handicraft and handloom.
