Tiruppur (Tamil Nadu) [India], April 28 : In a major boost to India's textile industry, the Tiruppur Exporters Association (TEA) has warmly welcomed the historic Free Trade Agreement signed between India and New Zealand. This landmark deal is expected to significantly enhance bilateral trade and open new avenues for investment and employment.
Following successful FTAs with the UK and the European Union, India has now solidified its economic ties with New Zealand. This agreement, signed by the Union Commerce Minister and the New Zealand delegation, marks a pivotal moment for Indian knitwear exporters, particularly those in the apparel and knitwear sectors.
India's apparel and knitwear exports to New Zealand, currently valued at 1.2 billion USD, are projected to double within the next two years.
The deal is anticipated to attract significant foreign investment from New Zealand, with estimates reaching 20 billion USD in the near future. This economic expansion is set to create numerous job opportunities across India, with Tiruppur expected to be one of the primary beneficiaries.
Exporters say they are thrilled with this historic deal. Tiruppur, which accounts for 68 per cent of India's knitwear exports, stands to benefit immensely. This FTA, along with those already signed with countries like the UK, USA, Oman, and Australia, now totalling nearly 70 per cent of global markets, will drive a massive increase in exports and foreign exchange for India."
To meet the anticipated demand, the industry is calling for enhanced capacity building. This includes modernisation for the construction of state-of-the-art, high-capacity factories, worker welfare for improved accommodation and staff quarters for the labour force.
The government's ongoing initiatives, such as the PM MITRA Parks and the modified ATUFS scheme, are already in place to support these developments and further boost India's domestic and international apparel business.
India and New Zealand signed the Free Trade Agreement (FTA) on Monday, marking a significant step in strengthening bilateral economic ties, with the pact expected to bring deep tariff cuts, expanded market access and enhanced services cooperation.
The deal signed between India's Commerce and Industry minister Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McKlay is being described as one of India's fastest concluded bilateral trade deals.
As global markets stabilise following recent geopolitical tensions, Indian exporters are reporting a steady influx of new inquiries and orders, signalling a bright future for the nation's textiles sector.
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