With the signing of the India-New Zealand Free Trade Agreement (FTA) on Monday, Indian exporters across sectors expect export growth in the New Zealand market to double.
As India gets zero-duty access for 100% of its exports, Indian textile and apparel exporters aim to export goods worth $100 billion by 2030, while the Gem & Jewellery Export Promotion Council (GJEPC) is targeting 200% export growth to $50 million in three years. According to the Federation of Indian Export Organisations (FIEO), the FTA is expected to more than double bilateral trade volumes.
India and NZ has a total goods trade of less than $1.5 billion with Indian exporting over $700 million of goods to NZ and receiving over $500 million from NZ.
Commerce Minister Piyush Goyal said the FTA unlocks major export potential, noting India’s negligible share in New Zealand’s $500 million leather market. He said that out of the $500 million market, India accounts for barely $4-5 million, but the FTA could unlock greater access for Indian leather exporters.
According to the Commerce Ministry, with zero tariffs from day one, sectors such as automobiles, tractors, two-wheelers, carpets, handicrafts and medical devices are set to benefit. Goyal added that India’s scale-driven manufacturing and $400 billion services exports position it well to expand in New Zealand.
Anish Shah, Group CEO and MD, Mahindra Group, said the deal creates new opportunities across farm solutions, mobility, technology and hospitality, while enabling innovation and more resilient supply chains.
The Engineering Exports Promotion Council expects this opportunity to double exports to around $280-300 million to New Zealand over the next five years, supported by zero-duty access, stable trade rules and closer industry collaboration under the FTA.
Electronics and electrical manufacturers also expect a surge in exports to New Zealand.
Vikram Gandotra, president of the Indian Electrical and Electronics Manufacturers' Association (IEEMA), said that with New Zealand already importing over $25 million in critical equipment such as transformers and cables from India, the immediate elimination of duties on select items, paired with a long-term tariff reduction roadmap, gives Indian manufacturers a decisive competitive edge.
“I am confident that this partnership will be a primary driver in doubling our bilateral trade to $5 billion within the next five years,” he said.
According to Manoj Mishra, partner, Grant Thornton Bharat, the FTA is set to provide a strong boost to labour-intensive sectors such as textiles, leather and engineering goods through zero-duty market access, enhancing export competitiveness. The agreement also enables faster regulatory approvals for pharmaceuticals and medical devices, supporting growth in high-value sectors.
While Indian exporters are bracing for improved market access, FIEO cautioned that to fully realise the benefits of the FTA, exporters need to stay informed about rules of origin, compliance requirements and regulatory frameworks. “Capacity-building initiatives, market intelligence and government support will play a crucial role in ensuring that Indian exporters can effectively capitalise on the opportunities presented,” said FIEO President S C Ralhan.