The India-New Zealand Free Trade Agreement (FTA), set for official signing this Monday, has sparked enthusiasm among Indian exporters, especially those in labour-intensive sectors such as engineering goods, gems and jewellery, textiles and leather, who seek to benefit most from tariff elimination immediately upon implementation.
While the market’s limited size and fulfilment of rules of origin remain points of concern, the outlook is largely positive amongst exporters as elimination of import duties would provide a competitive advantage to several sectors such as textiles, auto, carpets and footwear, that were previously saddled with peak tariffs of 10 per cent, sources said.
Commerce and Industry Minister Piyush Goyal will hold a meeting with representatives of export promotion councils and industry associations on Monday to discuss ways to boost the outbound shipments, an official said.
The meeting will be held after India and New Zealand sign the free trade pact here at Bharat Mandapam. Todd McClay, New Zealand’s Minister for Trade and Investment.
“Indian exporters, having zero duty on all products of exports, see the India–New Zealand FTA as a positive and timely step. It can open opportunities in a high-value market. Exporters will look for smooth implementation and clear rules of origin,” said Ajay Sahai, Director General, FIEO.
The target is to double bilateral trade in goods and services to about $5 billion from an estimated $2.4 billion in five years. Bilateral trade in goods was at $1.3 billion, which was 49 per cent higher than the previous fiscal. India’s goods exports to the country were valued at $711 million, while services exports in 2024 were at $ 634 million, per government figures.
Despite limited prospects in New Zealand because of its small population (of about 5.29 million), the FTA is a positive development for the Indian textile industry, said Sanjay Jain, MD, TT Ltd.
“The textile sector is positive on all FTAs, as we are net exporters. Gains will be limited in New Zealand because consumption is low. But every incremental thing is a benefit for us,” Jain said.
Engineering goods exporters, who already send shipments worth an annual $150 million to New Zealand, are bullish about the FTA. “We hope to consolidate on these numbers. Our expectations are of a 100 per cent increase in 3-4 years,” said Pankaj Chadha, Chairman, EEPC India.
The pact provides a clear duty advantage to the gems & jewellery sector over key competitors such as China and Thailand, pointed out Kirit Bhansali, chairman, GJEPC.
“India’s gems and jewellery exports to New Zealand currently stand at around $16.61 million, and with zero-duty access under the agreement, we expect this to grow to nearly $50 million over the next three years,” Bhansali said.
Meanwhile, New Zealand is eager to expand its reach in India for products like sheep meat, wool, apples and kiwis. Sources indicate Wellington is aiming for swift parliamentary passage to capitalise on a Most Favoured Nation (MFN) clause. This clause ensures that if India later grants greater market access in wines or services to other partners, such as the EU, those benefits may be extended to New Zealand, the source explained.
Published on April 26, 2026