India-New Zealand FTA Boosts Kanpur Leather and Textile Export Prospects

Kanpur. The Free Trade Agreement (FTA) between India and New Zealand comes into effect on Tuesday, opening fresh opportunities for Indian exporters. New Zealand is currently witnessing a rise in the issuance of certificates of origin, with leather and textile consignments worth over 10 million being sent to ports across the country for dispatch on Tuesday. The products are expected to reach markets in time for Christmas sales.

Alok Srivastava, Uttar Pradesh head of the Federation of Indian Export Organisations (FIEO), said the free trade agreement could provide a significant boost to Kanpur's micro, small and medium enterprises (MSMEs). Kanpur and its neighbouring areas are major exporters of leather goods to New Zealand, generating an annual turnover of Rs 200-300 crore. With the agreement coming into effect on October 20, exporters are securing certificates of origin to benefit from the new trade arrangement. Leather and textile goods worth Rs 1 crore have already been shipped from the city to ports across the country.

Previously, exporters received around five to eight certificates of origin a month. The number has now risen to eight certificates a day, covering both leather goods and textiles. Demand is particularly strong for Christmas-related products such as purses, bags and belts. Srivastava said the agreement could help exports more than double. India imports wool, iron, steel, aluminium, kiwifruit, apples and dried fruits from New Zealand. Greater trade activity could also increase the availability and consumption of these products in Kanpur and other Indian markets.

Import-export expert Zafar Feroz said New Zealand offers promising opportunities for Indian exporters, particularly in leather products such as wallets, belts and bags. With a free trade agreement already in place with Australia, exporters are also looking at fresh orders for the Christmas season. He added that opportunities could extend to other Oceania markets, including Fiji, Papua New Guinea, Kiribati, Samoa, Vanuatu, the Solomon Islands, Nauru and the Marshall Islands.

Relief from US Tariff Uncertainty May Take a Week

Exporters may begin to see some relief within a week following US President Donald Trump's decision to postpone a move involving possible sanctions and additional tariffs of up to 100 per cent on major countries purchasing Russian oil and gas. The development has eased some concerns among exporters across India, including those in Kanpur. However, tariffs of 22.50 per cent continue to apply to various products, compared with the earlier range of 10-11 per cent, adding to export costs.

Industry experts noted that a substantial share of the Christmas market has already been covered. Although smaller consignments continue to move, exporters remain reluctant to accept large orders amid uncertainty over US trade policy. With the US Secretary of State scheduled to visit India, exporters are watching for further developments, hoping that greater clarity on trade relations will emerge within the coming week.