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Explainer
March 20, 2025
|The Business Guardian
The FTA could unlock 10x trade growth, boost jobs, and strengthen India's Indo-Pacific influence.
The proposed Free Trade Agreement (FTA) between India and New Zealand isn't just another trade deal—it's a potential goldmine waiting to be unlocked. With bilateral trade standing at a modest $1.7 billion, this agreement could explode that figure tenfold over the next decade. Imagine the scale of new opportunities: Indian pharmaceuticals in Kiwi hospitals, New Zealand's world-class dairy products in Indian households—the possibilities are endless.
WHAT'S IN IT FOR INDIA?
• Tariff-Free Access - Indian exporters will get a smoother ride into New Zealand's market, reducing costs and boosting profits.
• Tech Power-Up - New Zealand's expertise in renewable energy and agri-tech could fuel India's domestic production and exports.
• New Jobs & Skills - With relaxed visa rules, India's growing pool of STEM graduates could find new opportunities in New Zealand's booming tech and services sectors.
WHAT'S IN IT FOR NEW ZEALAND?
• Access to 1.4 Billion Customers - India's huge market is a golden opportunity for Kiwi agricultural and dairy producers.
• Pharma and Machinery - Indian pharma products and machinery are already gaining traction; this deal will accelerate that trend.
• Stronger Political Ties - The FTA is not just about trade; it's about deepening strategic ties in the Indo-Pacific, where both countries face growing pressure from China.
CURRENT TRADE STATUS
India and New Zealand have maintained relatively modest trade volumes despite the immense potential. As of the 2023-24 financial year, bilateral trade between India and New Zealand stood at approximately $1.7 billion. India's exports to New Zealand totaled $682 million in 2023, while New Zealand's exports to India amounted to $369 million.
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