Ficci president: The India–New Zealand FTA is about a lot more than expanding bilateral trade

Subscribe to enjoy similar stories.Geography may place India and New Zealand at distant points on the world map, but that distance has never defined their relationship. They have common democratic values, strong people-to-people ties and a deep cultural affinity, which includes their shared love for cricket. Much like their encounters on the pitch, India-New Zealand trade has traditionally resembled a Test match: steady and patient but often lacking in tempo, and has only picked up pace in recent years.

The signing of the India-New Zealand Free Trade Agreement (FTA) on 27 April within a year of the relaunch of FTA negotiations has injected the energy of a T20 game into a long-format relationship—promising faster growth in trade, sharper exchanges in investment and a more collaborative partnership. Bilateral trade between India and New Zealand was modest at about $1.3 billion in 2024-25, but has huge potential. India enjoys a trade surplus with New Zealand, exporting pharmaceuticals, textiles, machinery and refined petroleum products, while importing wool, dairy, fruits and wood.

The opportunity to expand, however, is far wider. New Zealand’s total import market was placed at around $47.5 billion in 2025, with India’s share at just about 2%, much lower than major partners such as China, Australia, the US, South Korea and Japan, which together account for over half of its import basket. Most of them (barring US) already have FTAs with New Zealand, giving them preferential market access and a structural advantage.