The Confederation of Indian Industry (CII) has urged Indian exporters, particularly micro, small and medium enterprises (MSMEs), to capitalise on opportunities under the India-New Zealand Free Trade Agreement (FTA), which came into effect on October 20.
Sanjay Budhia, Chairman of the CII National Committee on Exports and Managing Director of Patton International Ltd, called on businesses to engage proactively with New Zealand buyers, understand product-specific rules of origin and use government export promotion initiatives to strengthen their market presence.
Budhia also highlighted New Zealand’s potential as a gateway to the wider Oceania and Pacific Island markets.
India-New Zealand FTA Offers Zero-Duty Market Access
Under the bilateral trade agreement, Indian goods will receive duty-free access across all tariff lines in New Zealand. The agreement eliminates import duties of up to 10% on several products.
Engineering goods, textiles, leather and footwear are expected to benefit from the tariff reductions. Indian exporters and manufacturers in chemicals, plastics, electronics, pharmaceuticals and processed food products could also gain from improved market access.
Labour-intensive sectors, particularly textiles, leather and footwear, may see improved price competitiveness in the New Zealand market.
FTA to Reduce Trade Compliance Costs
Beyond tariff concessions, the agreement includes measures to simplify trade procedures and reduce regulatory barriers.
According to Budhia, streamlined Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) procedures will help exporters navigate regulatory requirements more efficiently.
Provisions covering electronic certification and the acceptance of Good Manufacturing Practices (GMP) and Good Clinical Practice (GCP) inspection reports are also expected to reduce compliance costs and facilitate cross-border trade.
New Zealand Could Open Access to Pacific Markets
Budhia encouraged Indian businesses to look beyond New Zealand’s domestic market and explore opportunities across the wider Oceania and Pacific Island region. The FTA could provide exporters with a platform to expand their commercial presence, particularly in manufacturing and value-added products.
However, converting tariff concessions into export growth will depend on businesses identifying potential buyers, meeting product standards and complying with rules of origin.
The agreement presents an opportunity to strengthen India-New Zealand trade and investment ties, with Indian exporters’ ability to use the available market access and trade facilitation measures likely to shape its commercial impact.
