The FTA offers engineering goods exporters, especially MSMEs, the opportunity to diversify their product portfolio. The trade pact actually grants Indian MSMEs 100% duty-free access to the New Zealand market. As per the pact, customs tariff up to 10% will be eliminated, procedures will be streamlined opening up a new vista of supply-chain and investment opportunities. 

The FTA has unlocked direct export growth for textiles, apparel, leather, footwear, gems and jewellery, and engineering goods. More importantly, it will support women-led enterprises, start-ups, artisans, and first-generation entrepreneurs. 

Duty-free access for wooden logs, coking coal, and metal waste and scrap is also expected to strengthen manufacturing and MSME supply chains. The FTA also includes faster and streamlined regulatory processes for pharmaceuticals and medical devices, while New Zealand has committed to facilitate the registration of Indian Geographical Indications— significant for rural artisans and traditional industries.

All Eyes On Engineering Sector 

This particular trade deal will open up new opportunities for the engineering sector. New Zealand is a relatively small market for Indian engineering, but holds high potential. India's engineering exports to New Zealand grew from US$129.8 million in 2024-25 to US$140.5 million in 2025-26, showing steady growth momentum.

Automobiles, industrial machinery for the dairy sector, medical and scientific instruments, office equipment, and iron and steel products are among the key engineering items that India exports to New Zealand. As engineering exports to New Zealand accelerate, they will help achieve the sector's US$250 billion exports target by 2030.

The Sensitive Agriculture Sector

The India-New Zealand Agricultural Productivity Partnership goes beyond tariff cuts to focus on technology, training and best practices for Indian farmers with dedicated action for a host of agri products such as kiwifruit, apples and honey. Horticulture, forestry, livestock and fisheries will also benefit from the pact.

New Zealand will support Centres of Excellence for these products. The Phase-I kiwifruit sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand; apple centres are proposed in Himachal Pradesh and Uttarakhand; and honey centres are planned in Uttar Pradesh and West Bengal.

Under the FTA sensitive products such as dairy, sugar, edible oils and key agricultural commodities remain excluded from concessions, with safeguards, robust rules of origin and anti-circumvention provisions intended to protect farmers, dairy producers, fisherfolk and rural communities.

Mobility Is Key

For young Indians, the FTA creates annual quotas of 5,000 temporary employment entry visas and 1,000 working holiday visas. Indian students will face no numerical cap, with post-study work rights of up to three years for STEM Bachelor’s and Master’s graduates and up to four years for doctoral scholars.

Current Level Of Trade and Investment 

In 2025-26 New Zealand exported US$1.21 billion of total goods and services to India and imported $1.03 billion, underscoring a trade balance of $181.86 million and a total trade value of $2.24 billion. For trade in total goods and services India ranked 10 of 240 for highest export value, 13 of 238 for highest import value, and 11 of 243 for highest total trade value. 

All major Indian IT companies are present in New Zealand. Bank of India, Bank of Baroda and New India Assurance have commercial operations in New Zealand. Indian tech giant HCL, which already has a significant presence in New Zealand, opened a delivery centre in Hamilton primarily to service Fonterra, one of the world’s biggest dairy cooperatives. In 2020, it even won a US$20 million annual contract from Fonterra. Besides Mahindra Motors, Tech Mahindra Ltd, TCS, Infosys, Dr. Reddy Laboratories and Royal Enfield Motors too have presence in New Zealand. In fact, Mahindra Motors is significantly expanding its presence in the country with 20 outlets. 

Leading NZ companies having substantial business undertakings in India include Gallagher Group, which has installed security systems in the Indian Parliament, ISRO & other key locations; Sealegs that supplied amphibious motor boats to the Mumbai Police; Hamilton Jet which supplied water propulsion jet engines for the patrol boats of the Indian Coast Guard; Glidepath that supplies air cargo handling systems / conveyor belts at India’s international airports and has since been purchased by French Company B2A Technology; Quality NZ, supplying high-quality seafood, meat products, fruits, wine to various five-star hotels in India; Redesign Group, involved in designing of shopping malls and other projects at major Indian international airports etc; Valocity, a real estate online aggregator platform bringing together brokers, lenders and home buyers, that was included in the top 20 financial technology companies by India Fin-tech Awards. Rakon NZ has established a manufacturing unit in Bengaluru through a joint venture with anCentum Electronics Limited, specializing in telecommunications products. Interestingly, the chips produced by the company were used in Chandrayaan-3.  As part of the FTA, New Zealand has committed an investment of US$20 billion over the next 15 years, strengthening long-term economic and strategic cooperation. 

Clearly, a forward-looking FTA has come into force.  

In the words of New Zealand Prime Minister Christopher Luxon, this is a once in a generation deal. He noted that the benefits of this FTA would be widespread, and the New Zealand business community would also experience the doors of opportunities opening up to a market of 1.4 billion people. 

From the Indian viewpoint the MSMES must prepare themselves, understand rules of origin, adhering to New Zealand standards, and converting zero-duty access into real orders, jobs and incomes.

Until the Indian MSMEs utilise the benefits of the trade pact, little will be achieved.