Terming the India-New Zealand Free Trade Agreement (FTA) as an Oceania Gateway, the Southern India Mills’ Association projects, it could catalyze a $500 million annual opportunity for MSMEs in hubs like Tiruppur and Surat within the next 24 months.
Market diversification amidst global headwinds
The agreement arrives as the industry aggressively pivots toward its $350 billion by 2030 valuation target. While traditional Western markets face demand volatility, Indian textile exports to 111 countries rose by 10 per cent in H1, FY2025–26, reaching $8.49 billion. The New Zealand FTA acts as a strategic buffer against global shifts, specifically targeting high-value segments like sustainable denim and organic cotton knits - categories where New Zealand’s affluent consumer base shows strong preference.
Productivity and the power of 5,000 visas
Beyond merchandise, the ‘New Generation’ trade pact integrates a $20 billion investment commitment from New Zealand over 15 years and a dedicated Temporary Employment Entry Visa pathway. This allows 5,000 Indian professionals annually to enter New Zealand, facilitating a two-way flow of design expertise and technical skills. Combined with the government's Mission for Cotton Productivity, this mobility ensures that India’s MSME-dominated sector (80 per cent of total capacity) is now better equipped to handle the rigorous quality and contamination standards of developed Pacific economies.
SIMA is the single largest representative body of the organized textile industry in South India, influencing policy for the entire value chain from fiber to fashion. Historically centered on cotton spinning, SIMA-associated mills have diversified into man-made fibers (MMF), technical textiles, and high-end apparel for the US, EU, and now Oceania markets.
