The trade pact has opened up new export opportunities for domestic manufacturers as well as service providers – and some sectors are in for major gains.

With the agreement coming into force, Indian exporters will have zero-duty access across 100% of New Zealand’s tariff lines. The immediate beneficiaries will include textiles and apparel, engineering goods, leather and footwear, processed foods, pharmaceuticals, plastics, and rubber, and a range of professional services. 

“The opportunity is significant because the agreement removes tariffs of up to 10% on several Indian products, improving their price competitiveness in a developed market,” said a trade expert, adding that the scale of the eventual gains will depend on how quickly they expand production and meet New Zealand’s product standards.

The agreement, it may be recalled, was signed on 27 April 2026 in New Delhi by Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay. The pact, which comes with a commitment from New Zealand to invest US$ 20 billion into India over 15 years, was operationalised in quick time on 20 October. 

“For India, 100% duty-free access to the New Zealand market opens significant new opportunities for our exporters, particularly micro, small, and medium enterprises (MSMEs), artisans, farmers, and women entrepreneurs. For our farmers, the agreement combines new opportunities with appropriate safeguards,” Goyal said.

Apparel And Textiles Major Beneficiaries

Apparel, textiles, and clothing are among the most promising beneficiaries of the FTA given the huge imports of these products by New Zealand. 

According to the Ministry of Textiles, India’s textile, apparel, and made-up exports to New Zealand are valued at approximately US$ 100 million, while New Zealand’s global imports in these three categories are estimated at US$ 330 million, US$ 1.27 billion and US$ 330 million, respectively. Indian suppliers have sufficient room to increase their share in the New Zealand market. 

New Zealand previously levied up to 10% duty on some apparel, carpets, and synthetic fibre products. The removal of tariff gives Indian manufacturers a competitive advantage as compared to suppliers from the countries enjoying preferential access.

According to government projections, the major beneficiaries will include garment exporters, textile manufacturers, carpet makers, handloom producers, and suppliers of cotton and manmade fibre. The exporters of specific products like T-shirts, jeans, casual wear, jackets, bed linen, and furnishing fabrics can look forward to a wider high-paying market.

Engineering Goods

Engineering goods is another major sector which stands to benefit from the FTA. According to government data, India’s engineering exports to New Zealand increased from US$ 47.76 million in 2023–24 to US$ 68.26 million in 2024–25. On the other hand, New Zealand’s engineering imports from the world averaged around US$ 11 billion over the preceding three years, indicating the export potential. 

The removal of duties of up to 10% across relevant products can help Indian suppliers of machinery, industrial equipment, automotive components, electrical goods and metal products compete more effectively. The agreement also provides tariff-free access to selected manufacturing inputs, including coking coal, wooden logs, and metal scrap, which will reduce the cost of imported inputs.

The agreement could also encourage companies to use New Zealand as a foothold for exploring other Pacific markets. That possibility is attractive to exporters seeking to diversify beyond traditional destinations.

Footwear Industry

India’s leather and footwear industry has considerable scope to benefit from lower trade barriers. The leather and footwear exports stood at approximately US$ 5.5 billion in 2024–25, while exports to New Zealand were about US$ 8.52 million, according to the government’s sectoral assessment. New Zealand’s imports of leather, footwear, and related products averaged US$ 510 million annually over the previous three years. 

The difference between India’s global export capacity and its relatively small sales to New Zealand points to an opportunity for expansion. The agreement could be particularly valuable to small and medium-sized producers, which often face tight margins in international markets. Zero-duty access improves their pricing flexibility, but exporters will still need to invest in product design, branding, sustainability standards, and reliable delivery.

Pharmaceuticals And Medical Devices 

India’s pharmaceutical industry is another potential winner. Indian pharmaceutical exports reached US$ 24.5 billion in 2024–25, up from US$ 22.1 billion a year earlier. Exports to New Zealand were approximately US$ 57.52 million, while New Zealand’s pharmaceutical imports from global markets averaged US$ 1.4 billion over the preceding three years. 

The agreement reduces tariffs on covered pharmaceutical products and introduces measures to facilitate regulatory processes. The Indian government has highlighted provisions allowing acceptance of relevant inspection reports from comparable regulators, including the US Food and Drug Administration, the European Medicines Agency, the UK’s Medicines and Healthcare Products Regulatory Agency, and Health Canada, subject to the agreement’s conditions.

“This could reduce duplication in regulatory procedures and help qualifying Indian manufacturers bring products to market more efficiently. Generic medicines, selected formulations, and medical devices could gain from improved access,” an official source said.

Agriculture, Processed Food, Marine Products

India’s agricultural and processed food exporters could benefit from the removal of tariffs on covered products, including selected spices, cereals, coffee, cocoa, fruits, and processed foods.

Official data show that Indian agricultural exports to New Zealand increased from US$ 95.62 million in 2023–24 to US$ 108.21 million in 2024–25. India’s global agricultural exports reached US$ 51.8 billion in 2024–25. 

Marine products are another area of opportunity for exporters. India exported US$ 7 billion worth of marine products globally in 2024–25, while exports to New Zealand rose from US$ 15.35 million to US$ 15.89 million over the same period. New Zealand’s marine imports from the world averaged around US$ 260 million annually over the previous three years. 

The FTA can help Indian seafood exporters, spice processors, ready-to-eat food manufacturers and suppliers of value-added agricultural products expand their reach. 

On the other hand, the government has protected sensitive domestic interests. Dairy products such as milk, cheese, whey and yoghurt, along with several agricultural commodities, sugar and edible oils, have been excluded from tariff concessions to New Zealand. Selected products, including apples, kiwifruit, and manuka honey, receive calibrated access under tariff rate quotas and associated safeguards. 

IT, Professional Services, Skilled Workers

The agreement’s benefits extend beyond merchandise exports. New Zealand has made market-access commitments across approximately 118 services sectors and sub-sectors, with most-favoured nation treatment in around 139 sub-sectors. These cover areas such as IT, professional services, telecommunications, construction, education, tourism, and other business services. 

India’s services exports to New Zealand reached US$ 634 million in 2024, growing 13%, with travel, IT, and business services among the important categories. 

Indian IT firms, consultants, engineers, educators and healthcare professionals could benefit from improved market access and mobility provisions. The agreement creates a dedicated pathway for 5,000 skilled Indian professionals to hold temporary employment-entry visas at any given time, with stays of up to three years under the scheme. It also provides 1,000 working-holiday visas annually for young Indians.

Eligible Indian students gain access to uncapped student mobility, a guaranteed minimum of 20 hours of work per week during study, and post-study work opportunities of up to three years for STEM bachelor’s and master’s graduates and four years for doctoral scholars. 

These provisions could strengthen India’s services exports and create opportunities for skilled workers. The agreement also recognises cooperation in Ayurveda, yoga and traditional medicine services, potentially opening opportunities for wellness providers and related enterprises.

Investment Commitment 

The proposed US$ 20 billion investment commitment over 15 years could support Indian agriculture, manufacturing, infrastructure, startups and emerging technologies. The government describes this provision as an investment facilitation commitment, rather than a guarantee that the entire amount will immediately arrive. 

 “FTAs are about creating a deep economic partnership between countries. As a part of the FTA, we see this partnership also driving a lot of New Zealand investment in India. All the other big economies around the Pacific have got a much deeper trade with New Zealand. This FTA opens up the opportunity that we can also be a major contributor to the bilateral trade between India and New Zealand,” said Commerce Secretary Rajesh Agarwal.

The Real Challenge

For MSMEs as well as larger enterprises, the challenge will be to translate lower tariffs into actual orders. Smaller exporters often lack the resources to navigate foreign certification, marketing, distribution, and customs procedures. Export facilitation, buyer-seller meetings, trade fairs and accessible information on rules of origin will therefore be essential.

India and New Zealand have set an aspirational goal of doubling bilateral trade in goods and services to NZ$ 7 billion, approximately ₹350 billion, by 2030 on the back of the FTA. 

The big question is whether Indian businesses can convert tariff advantages into repeat orders, higher productivity and employment generation.

The job now, Agarwal said, “is to translate this opportunity into actual benefits for our people. We are working with all the industry and the associations to take this message forward to every district across the country.”