The landscape for Indian garment exports is set for a significant transition following the signing of a comprehensive Free Trade Agreement (FTA) between India and New Zealand on April 27, 2026. Negotiated by Piyush Goyal, Commerce Minister and his counterpart Todd McClay, the deal provides Indian exporters with 100 per cent duty-free access to a market that currently imports over US$ 1.2 billion in ready-made garments annually. This development arrives at a critical juncture for the Apparel Export Promotion Council (AEPC), which aims to address the current modest market share of 4.4 per cent by leveraging immediate price competitiveness. By removing existing tariff barriers, the agreement effectively repositioned India to challenge dominant regional suppliers, specifically in high-volume categories like cotton knitwear and shirts.

MSME expansion and fiber diversification to drive export volumes

AEPC anticipates, the trade pact will act as a catalyst for trebling ready-made garment exports to New Zealand over the next 24 months. Dr A Sakthivel, Chairman indicated, the strategy focuses not only on India's traditional dominance in cotton-based apparel but also on a planned expansion into man-made fiber segments to better align with New Zealand’s shifting consumer demand. This shift is particularly material for India’s small and medium enterprises (MSMEs), which constitute the backbone of the apparel value chain and are expected to see a surge in job creation. As the industry moves toward more sustainable export growth, the council plans to initiate focused capacity-building programs to ensure local manufacturers can meet the technical and volume requirements of the newly accessible market.