How much bilateral trade is projected between India and New Zealand after the FTA?

Bilateral merchandise trade, at $1.3 billion in FY25, is expected to grow manifold after the FTA's implementation.

Which Indian sectors will benefit most from the India-New Zealand FTA?

Sectors like processed foods, pharmaceuticals, machinery, electronics, vehicles, aerospace components, and furniture are expected to benefit significantly.

What challenges does India face in maximizing the India-New Zealand FTA?

India needs to focus on targeted export promotion, standards cooperation, regulatory facilitation, and logistics support to fully leverage the FTA.

Home / Business and Economy / India-NZ FTA: Trade to Skyrocket Post-Deal

India-NZ FTA: Trade to Skyrocket Post-Deal

24 Dec

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Summary

Bilateral trade of $1.3 billion in FY25 is set to grow significantly.
New Zealand imports are currently dominated by China, with India underrepresented.
FTA offers zero-duty access for Indian processed foods, pharma, and machinery.

India-NZ FTA: Trade to Skyrocket Post-Deal

The recently announced free trade agreement between India and New Zealand is expected to dramatically boost bilateral merchandise trade, which stood at $1.3 billion in FY25. Analysis suggests India is significantly under-represented in New Zealand's import market, presenting a prime opportunity for growth in sectors such as processed foods, pharmaceuticals, machinery, and electronics. Experts highlight that realizing this potential requires concerted efforts in export promotion, regulatory cooperation, and enhanced logistics support.

Currently, New Zealand's imports are heavily reliant on China, with India capturing less than 1.5% of its $50 billion import market in FY25. The FTA aims to rectify this imbalance, offering New Zealand a chance to diversify its supply chains for greater resilience. For India, specific sectors like bakery products, food preparations, and pharmaceuticals show a notable gap between global exports and shipments to New Zealand, indicating significant untapped potential.