India can boost exports to New Zealand significantly after FTA: GTRI
With bilateral merchandise trade at $1.3 billion in FY25, experts say targeted export promotion, regulatory cooperation and logistics support will be key to unlocking the agreement’s full potential.
India has the potential to substantially increase its exports to New Zealand after the bilateral free trade agreement is implemented, as it is under-represented in many products where it is a major global exporter and New Zealand is a large importer, per an analysis by the research body Global Trade and Research Initiative.
The pact, offering zero-duty market access to all goods from India, can benefit sectors such as processed foods, pharmaceuticals, machinery, electronics, vehicles, aerospace components, and furniture, it said.
Trade imbalance
In FY2025, New Zealand imported goods worth $711 million, which was less than 1.5 per cent of its total imports of $50 billion. In contrast, China exported goods worth over $10 billion to the country, the report noted.
For India, the challenge now is to pair the FTA with targeted export promotion, standards cooperation, regulatory facilitation, and logistics support, according to Ajay Srivastava, trade expert and founder of GTRI. “For New Zealand, diversifying imports away from a single dominant supplier would strengthen supply-chain resilience. If implemented well, India could unlock substantial new trade across processed foods, pharmaceuticals, machinery, electronics, vehicles, aerospace components and furniture, transforming a modest trade relationship into a far deeper one,” he said.
Trade outlook
Bilateral merchandise trade, at $1.3 billion in FY25, is expected to grow manifold after the FTA’s implementation, Commerce & Industry Minister Piyush Goyal said at a media briefing after the FTA was announced on Monday.
The pact will now be legally vetted by both sides, following which it will have to be approved by New Zealand Parliament.
Food exports gap
In processed foods, there is a big opportunity for growth, the GTRI report said. “India exported $602 million of bakery products globally but only $6.5 million to New Zealand. In food preparations, India’s global exports are $817 million, yet shipments to New Zealand are just $7.7 million,” the report noted.
Pharmaceutical is another item that stands out. New Zealand imports $962 million in medicines, while India supplies only $75 million, despite India’s strong global competitiveness.
“Data point to under-penetration rather than weak competitiveness, making processed foods, pharma, machinery, electronics, vehicles, aerospace and furniture prime FTA-driven growth areas,” the report said.
Published on December 24, 2025
