SIMA Lauds FTA Between India & New Zealand, Anticipates Rise in Textile Exports
27 December 2025: The Southern India Mills’ Association (SIMA) has welcomed the successful conclusion of India-New Zealand Free Trade Agreement (FTA), calling it a timely and strategic move to strengthen India’s textile and apparel exports amid global trade volatility.
India’s textile and clothing sector remains one of the country’s most significant industries, ranking as the world’s second-largest producer and consumer of cotton and the second-largest employer after agriculture. Nearly 80 per cent of the sector’s installed capacity lies within the MSME segment, while India stands as the sixth-largest textile and apparel market globally. The industry’s growth momentum has already been reinforced by the recently concluded India-UK FTA, which improved global market access and competitiveness for Indian textile products.
To address structural challenges across the textile value chain, the Government of India has rolled out several policy initiatives. These include the formation of a Cost-Control Committee and a Cotton Think Tank with representation from all major stakeholders, alongside the launch of the Mission for Cotton Productivity. The mission aims to tackle critical issues related to productivity, quality enhancement, contamination control and long-term sustainability.
According to SIMA, achieving the ambitious target of USD 350 billion in textile business by 2030 will require sustained efforts on multiple fronts. Ensuring the availability of quality raw materials, expanding export markets, diversifying destinations and increasing the share of value-added products remain key priorities.
In a press release issued on December 22, 2025, Durai Palanisamy, Chairman, The Southern India Mills’ Association (SIMA), profoundly thanked and complimented the Hon’ble Prime Minister, Shri Narendra Modi, Hon’ble Commerce & Industry Minister, Shri Piyush Goel and Hon’ble Minister of Textiles, Shri Giriraj Singh for the landmark and pathbreaking achievement of successful conclusion of the India-New Zealand Free Trade Agreement (FTA). He thanked the Government for giving a major thrust to the textile sector and securing zero-duty access. India’s textile and apparel exports stood at USD 36.9 billion in 2024-25, while exports to New Zealand rose to USD 103 million. This trend is expected to accelerate, given that New Zealand’s annual global textile imports are valued at nearly USD 1.9 billion says SIMA Chief.
Durai has welcomed the successful conclusion of the India-New Zealand Free Trade Agreement (FTA) by the Government of India, describing it as a timely and positive step that would significantly enhance opportunities for the Indian textile and apparel industry. He stated that the FTA is expected to provide improved duty free market access for Indian textiles and clothing in New Zealand, thereby enhancing the competitiveness of Indian products not only in the market of the partnering country, but the agreement is also expected to facilitate diversification of export destinations.
Durai appreciably expressed that the agreement would contribute to employment generation, capacity utilization and sustained growth of the textile sector, enabling the industry to fully leverage opportunities arising from this landmark agreement.
