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India-NZ FTA: Trade to Skyrocket Post-Deal
24 Dec
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.
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.
The agreement, which will undergo legal vetting and parliamentary approval in New Zealand, is anticipated to transform the modest trade relationship into a much deeper one. Proactive measures by India, including targeted promotion and standards cooperation, will be key to unlocking substantial new trade opportunities across various goods and consolidating New Zealand's move towards supply-chain diversification.
