India Signs Historic FTA With New Zealand: Five Export-Driven Stocks That Stand to Gain

India Signs Historic FTA With New Zealand: Five Export-Driven Stocks That Stand to Gain

India and New Zealand sealed a landmark Free Trade Agreement on April 28, 2026 — a deal both governments are calling "once-in-a-generation." The pact eliminates tariffs on 100% of Indian exports, opens 8,284 tariff lines, and comes with a billion investment pledge. For Indian exporters in textiles, gems and jewellery, and leather, this is the latest in a series of trade deals — following the India-UK FTA — that are steadily lowering barriers to key markets.

But which listed companies are actually positioned to capitalise? We searched through corporate filings to find the ones already doing the work.

Textiles: The Biggest Winner

India's textile and apparel sector has the most to gain. New Zealand is a relatively small market, but the FTA adds to a pattern: more zero-tariff access means Indian exporters can compete on price against Bangladesh and Vietnam without the handicap of duties.

Welspun Living (WELSPUNLIV) is already proving this thesis. Per their FY25 annual report, operational revenue reached ₹10,545 crore, up 8.95% from ₹9,679 crore in FY24. Their Home Textile Export Business grew 19% year-on-year in Q1 FY25 with an EBITDA margin of 17%. Global brand sales were up 23% year-to-date. Welspun is India's largest home textiles exporter, and each new FTA widens their addressable market. RSWM Limited (RSWM) is perhaps the most direct beneficiary. In their latest annual report, the company explicitly called out FTAs as a growth lever: "The recently ratified India-UK Free Trade Agreement is anticipated to amplify Indian textile exports by diminishing tariffs and facilitating trade, thereby unlocking an additional US billion in exports." They also noted that "the continuing political crisis in Bangladesh is widening the opportunity landscape for the Indian textile industry as global retailers are forced to explore alternatives." RSWM's Q3 FY25 revenue stood at ₹1,196 crore, and management is positioning for the FTA-driven export wave in spinning, denim, and home textiles. K.P.R. Mill (KPRMILL) offers a vertically integrated play. The company spans yarn, knitted fabric, and readymade garments — meaning it captures value at every stage of the textile chain. Per their annual report, KPR generated consolidated revenue of ₹6,127 crore with a net profit of ₹805 crore. Their garment unit at Chengapally has been ramping up production capacity, and the company specifically accounts for export incentives as a revenue line item, signalling the importance of overseas markets to their business model.

Gems and Jewellery: Filing Evidence of Export Momentum

The India-NZ FTA covers gems and jewellery — a sector where India is already the world's largest diamond cutting and polishing centre. Surat's diamond industry, in particular, is expected to benefit from duty-free access.

Goldiam International (GOLDIAM) reported a stellar Q3 FY25: consolidated revenue was up 41% year-on-year and profit after tax surged 54% YoY. For the nine months ending December 2024, revenue grew 29% and PAT 28%. What's driving this? Lab-grown diamond jewellery now contributes 68% of quarterly revenue, up from just 33% in Q1 FY24. The company has been actively expanding into newer geographies, with a ₹30 crore order win from a new market. With an EBITDA margin of 22.1% and ₹2,768 million in cash, Goldiam is well-capitalised to scale into any new tariff-free markets. Motisons Jewellers (MOTISONS) provides a broader lens on the sector. The company's FY25 revenue from operations reached ₹462 crore, with profit before tax climbing to ₹59.4 crore from ₹44.8 crore the prior year — a 33% jump. Their filings note demand for traditional jewellery from NRIs worldwide, and highlight that India's gems and jewellery sector exported USD 28.5 billion in FY25. While overall exports declined 11.72%, new trade agreements like this FTA could help reverse that trend by opening duty-free channels.

Leather and Footwear: A Quieter Beneficiary

Liberty Shoes (LIBERTSHOE) represents the leather and footwear angle. In their annual report, the company specifically mentions "strategic execution of Free Trade Agreements" as a growth driver, alongside promotion of joint ventures in footwear manufacturing. India is the world's second-largest footwear producer, accounting for 13% of global production. The industry is projected to grow 8-12% annually, and the government's Budget 2025-26 announced a Focus Product scheme specifically for footwear exports.

What Retail Investors Should Do

This FTA is one piece of a larger puzzle. India has now signed trade deals with the UK, Australia, and New Zealand in quick succession. The companies that benefit most are those already exporting — they have the logistics, compliance, and relationships in place. Look for companies where export revenue is a significant share of total revenue, where management explicitly discusses FTAs in their filings, and where margins are healthy enough to absorb the cost of entering new markets.

The textile exporters (Welspun Living, RSWM, KPR Mill) are the most direct beneficiaries. Goldiam is interesting for its lab-grown diamond growth story, which the FTA accelerates. Liberty Shoes is a longer-term play on India's footwear export ambitions. In all cases, watch for the next quarter's results to see if management guidance reflects this new market access.

Data sourced from company filings on NSE via Xaro.