New Delhi: The India-New Zealand Free Trade Agreement (FTA) has opened new export opportunities for Indian businesses, particularly micro, small and medium enterprises (MSMEs), with the industry body Confederation of Indian Industry (CII) urging exporters to make early use of the agreement.
The pact came into effect on 20 October and provides Indian goods with duty-free access across all tariff lines in New Zealand, removing import duties of up to 10% on several products.
Sanjay Budhia, Chairman of the CII National Committee on Exports and Managing Director of Patton International Ltd, said exporters should connect with New Zealand buyers, understand product-specific rules of origin and use government export promotion schemes to expand their presence in the market.
Sectors Set to Benefit
The agreement is expected to benefit several Indian industries, including:
Engineering goods: Improved price competitiveness in the New Zealand market.
Textiles, leather and footwear: Better export prospects for labour-intensive industries.
Chemicals and plastics: Greater opportunities for manufacturers and exporters.
Electronics and pharmaceuticals: Improved access to the New Zealand market.
Processed food products: New avenues for expanding exports.
Simplified Trade Procedures
The agreement also includes measures aimed at reducing compliance costs and easing trade procedures. Provisions covering Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) are expected to help exporters navigate regulatory requirements.
The pact also provides for electronic certification and the acceptance of Good Manufacturing Practices (GMP) and Good Clinical Practice (GCP) inspection reports, which could simplify procedures for eligible businesses.
New Zealand as a Gateway to Pacific Markets
Budhia said Indian exporters should also explore opportunities across the wider Oceania region and Pacific Island markets, beyond New Zealand itself.
For MSMEs, the agreement offers an opportunity to expand into a new market. However, exporters will need to identify buyers, meet product standards and comply with rules of origin to benefit from the duty concessions.
