India-New Zealand Free Trade Agreement Expected to Boost Textiles, Jewellery, Leather Exports

India-New Zealand Free Trade Agreement: A Boost for Textiles, Apparel, and Gems

The India-New Zealand Free Trade Agreement (FTA) is set to benefit the textiles, apparel, gems and jewellery, and leather sectors significantly, with estimates suggesting a substantial increase in exports over the next three years. According to industry and government estimates, gems and jewellery exports to New Zealand alone are expected to rise from $16.6 million to nearly $50 million within three years, while leather and footwear shipments could see a significant uptick by 2030 with tariff elimination.

Key Sectors to Benefit from the FTA

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The agreement provides a clear duty advantage over key competitors such as China and Thailand, enhancing competitiveness and enabling expansion of market share. New Zealand, with its high per capita jewellery consumption trends, brings new opportunities for Indian exporters.

Textiles and Apparel Industry

The FTA is expected to strengthen ongoing efforts to reduce dependence on select markets, move up the value chain, and add momentum to India's 2030 aspiration of building a $350-billion textile and apparel industry. New Zealand already imported NZ$80.22 million worth of Indian made-up textile articles in 2025, and tariff elimination is expected to boost volumes and improve realisations, especially in segments that previously faced duties.

Protected Sectors

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India has protected its sensitive sectors, including dairy, edible oils, sugar, and key agricultural products, reinforcing a calibrated trade strategy. This move suggests that the country is adopting a selective approach to trade, prioritizing sectors that offer the most benefits.

Bilateral Trade

Total bilateral trade in goods and services between India and New Zealand was around $2.4 billion in FY25. ASSOCHAM President Nirmal K Minda predicts that bilateral trade could reach $5 billion by 2030, marking a significant milestone in the economic cooperation between the two countries.

Agreement Details

The agreement, signed on April 27, reduces or eliminates tariffs on 100 percent of Indian exports to New Zealand, while India will offer market access on about 70 percent of tariff lines covering roughly 95 percent of New Zealand's exports, including wool, coal, wood, and wine. The agreement covers 20 chapters, including trade in goods, rules of origin, services, customs and trade facilitation, SPS, TBT, trade remedies, dispute settlement, and legal provisions.