New Zealand's textile, apparel and footwear industries will get a significant financial boost this week with a NZ$2.3 million grant included in the federal government's annual budget.

According to Economic Development Minister Jim Anderton, the money allocated in Thursday's budget would assist the local sector in adapting to tariff reduction which begins in July next year.

It would also help local companies to achieve growth, he said.

Textiles New Zealand CEO Liz Francis praised the move, saying the money would help to raise the skills of the country's 18,000 full-time textile industry workers.

Council of Trade Unions president Ross Wilson added the grant would help to safeguard jobs in the event that a free trade agreement with China was not reached.