India and New Zealand are set to strengthen shipping routes, air connectivity and supply chain resilience under their recently signed Free Trade Agreement (FTA). Trade Minister Todd McClay said the partnership will enhance bilateral trade, improve logistics and create greater certainty amid ongoing global geopolitical tensions.
Key Highlights
- India and New Zealand to expand shipping routes and connectivity under the FTA.
- Air New Zealand plans three offices in India to strengthen aviation links.
- Bilateral trade increased from $900 million to $1.3 billion between 2019–20 and 2024–25.
- FTA removes tariffs on 100% of India’s exports to New Zealand.
Auckland, July 10: India and New Zealand are preparing to strengthen their economic and logistics partnership by expanding shipping routes, air connectivity and supply chain cooperation, as both countries seek to reduce the impact of global geopolitical uncertainties. Speaking amid renewed tensions in the Middle East, New Zealand’s Minister for Trade and Investment, Todd McClay, said the recently signed India-New Zealand Free Trade Agreement (FTA) provides a stable framework for deeper bilateral engagement and long-term economic resilience.
Highlighting the importance of dependable supply chains, McClay said both countries have agreed to build stronger connectivity links, with shipping services expected to increase between India and New Zealand. He noted that while international conflicts can disrupt global trade, the FTA offers businesses greater certainty and enables both nations to rely more on each other for trade, investment and logistics.
The strengthening relationship is already reflected in rising bilateral trade. Total trade between India and New Zealand increased from approximately $900 million in 2019–20 to $1.3 billion in 2024–25. During the same period, India’s exports nearly doubled from $379 million to $711 million, while imports from New Zealand rose from $522 million to $587 million, demonstrating growing commercial engagement.
Connectivity between the two countries is also set to receive a significant boost through the aviation sector. Air New Zealand plans to establish three offices in India to promote direct business and tourism opportunities. In addition, Air India and Air New Zealand have jointly sought regulatory approval in New Zealand to cooperate on flight operations, paving the way for enhanced passenger connectivity and easier travel between the two countries.
The India-New Zealand Free Trade Agreement, signed on April 27, is expected to substantially increase bilateral trade by eliminating tariffs on 100 per cent of India’s exports to New Zealand while removing or significantly reducing tariffs on 95 per cent of New Zealand’s exports to India. The agreement is expected to strengthen cooperation across trade, investment, agriculture, technology and services, laying the foundation for a broader strategic economic partnership.
Conclusion
The expansion of shipping routes, aviation links and trade cooperation under the India-New Zealand FTA signals a new phase in bilateral relations, helping both countries build more resilient supply chains, stronger economic ties and long-term strategic cooperation despite global uncertainties.
