India’s Textile Sector Gains Strategic Momentum
India’s textile and clothing industry is the world’s second-largest producer and consumer of cotton. It is also the second-largest employer after agriculture. Nearly 80 percent of installed capacity lies within the MSME segment. Moreover, India ranks as the sixth-largest textile and apparel market globally.
Free Trade Agreements Strengthen Global Competitiveness
The recently concluded India–UK Free Trade Agreement has already enhanced market access for Indian textile products. Similarly, the India–New Zealand Free Trade Agreement is expected to further improve competitiveness. As a result, Indian exporters can access developed markets with greater ease.
Government Policy Measures Support Long-Term Growth
To ensure sustained growth, the Government of India has introduced targeted policy interventions. These include a Cost-Control Committee and a Cotton Think Tank with industry-wide representation. In addition, the Mission for Cotton Productivity focuses on yield improvement, quality enhancement, contamination control, and sustainability.
Export Expansion Key to 2030 Industry Targets
Reaching the targeted industry size of USD 350 billion by 2030 requires parallel efforts. These include securing quality raw material availability and expanding global market reach. Furthermore, greater emphasis on value-added products will be critical to future growth.
SIMA Applauds Zero-Duty Access Under FTA
The Southern India Mills’ Association has welcomed the successful conclusion of the India–New Zealand Free Trade Agreement. SIMA Chairman Mr. Durai Palanisamy acknowledged the efforts of the Prime Minister and Union Ministers for Commerce and Textiles. The agreement ensures zero-duty access for Indian textile and apparel products.
Strong Export Potential in the New Zealand Market
India’s textile and apparel exports stood at USD 36.9 billion in 2024–25. Exports to New Zealand reached USD 103 million during the same period. However, New Zealand’s total annual textile imports are valued at nearly USD 1.9 billion. Therefore, export growth is expected to accelerate.
Value-Added Segments to Benefit Most
New Zealand is a developed market with stable demand and high quality standards. Consequently, the FTA will help Indian manufacturers expand in value-added categories such as fabrics, garments, and home textiles. At the same time, it will support diversification amid global trade volatility.
Employment and Capacity Utilization Set to Rise
SIMA noted that the agreement will contribute to employment generation and better capacity utilization. Ultimately, it will support sustained growth across the textile value chain and help the industry fully leverage emerging global opportunities.
