India-New Zealand Trade Agreement Opens New Avenues for Exporters: Industry Leaders

New Delhi, October 21 (Daily Kiran) : The recent implementation of the India-New Zealand Free Trade Agreement (FTA) has garnered positive reactions from industry leaders. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) welcomed the agreement, highlighting its potential to strengthen India’s economic engagement with developed economies. They believe it will create new opportunities for exporters, the manufacturing sector, and small businesses.

Nirmal K. Minda, president of ASSOCHAM, described the agreement as a mutually beneficial partnership. He noted that the duty-free access to the New Zealand market will particularly benefit Indian micro, small, and medium enterprises (MSMEs), artisans, farmers, and women entrepreneurs. Minda emphasized that the true success of the agreement will be measured by the opportunities it generates and its positive impact on the lives of people in both countries.

He also pointed to the recent export of a JCB machine from India to New Zealand, which was dispatched by the Union Minister of Commerce and Industry, Piyush Goyal. This export is seen as a testament to the growing capabilities of the Indian manufacturing sector.

Under the agreement, New Zealand has granted immediate duty-free access to 8,284 product categories from India. This is expected to significantly benefit sectors such as pharmaceuticals, textiles, machinery, engineering products, gems and jewelry, footwear, and leather.

According to ASSOCHAM, India’s exports to New Zealand reached $71.1 million in the fiscal year 2024-25, while imports from New Zealand during the same period totaled $58.7 million. However, in the fiscal year 2025-26, exports decreased to $56.7 million, and imports slightly increased to $58.9 million. India recorded a trade surplus of $12.4 million in 2024-25 but faced a minor trade deficit of $2.2 million in 2025-26.

The agreement also includes specific action plans for sectors like kiwifruit, apples, honey, horticulture, forestry, and animal husbandry, aimed at enhancing technical transfer, training, and productivity. India has agreed to eliminate import duties on products such as wood, wool, and sheep meat immediately, while tariffs on 35.6% of product categories will be phased out over ten years.

Additionally, the deal provides for quota-based concessions on select products like Manuka honey and kiwifruit. To facilitate the movement of Indian professionals, the agreement includes provisions for 5,000 temporary employment visas and 1,000 working holiday visas annually.

ASSOCHAM asserts that this trade agreement will fortify Indian MSMEs, enhance agricultural productivity, and better integrate Indian businesses into global value chains. It is expected to invigorate trade, investment, and broader economic cooperation between India and New Zealand.