New Delhi, May 05: The free trade agreement between India and New Zealand is set to drive bilateral trade to $5 billion over five years, positioning India as a key gateway to the Oceania region, according to a report by Brickwork Ratings.
The pact also envisages attracting $20 billion in foreign direct investment into India over 15 years, with near-term inflows expected in pharmaceuticals, agri-tech, and education, while emerging technologies and green energy remain long-term focus areas.
Signed on April 27, 2026, the agreement provides 100% duty-free access for Indian exports to New Zealand and opens 70% of India’s tariff lines to New Zealand goods, marking a structural shift in bilateral economic relations.
The deal is expected to enhance manufacturing and industrial growth through access to New Zealand’s technology and key raw materials such as timber, coal, and metal scrap, supporting supply chain integration.
Industry experts note that achieving the 2031 trade target implies a strong growth trajectory of around 30% CAGR, contingent on effective implementation and addressing non-tariff barriers.
The agreement also streamlines regulatory processes, with New Zealand recognising Good Manufacturing Practice certifications from global regulators, enabling faster entry for Indian pharmaceutical exporters.
Sectors such as textiles, leather, and engineering goods—including auto components and machinery—are expected to gain cost competitiveness, while increased capital inflows could support currency stability and reduce foreign exchange volatility over the medium term.
