The Global Trade Research Initiative (GTRI) said that the recently concluded India-New Zealand free trade agreement could be pivotal in increasing India’s share in New Zealand’s imports, which are currently dominated by China.
The think tank’s data showed that New Zealand’s imports from China were at $10 billion in FY25, while India’s exports to New Zealand were at just $711 million during the same period. GTRI noted, “India remains under-represented in many products where it is a major global exporter and New Zealand is a large importer. In FY2025”
Key industries in focus
GTRI noted that the FTA could open significant export growth opportunities for India’s industries, such as pharmaceuticals, processed foods, electronics, machinery, vehicles, and furniture. The report highlighted that these sectors are expected to emerge as prime FTA-driven growth areas, as trade data clearly shows a large gap between India’s global export strength and its limited presence in New Zealand’s market.
The think tank said that there are particularly large gaps in processed food exports. While India’s global exports of bakery products stand at $602 million, exports to New Zealand are limited to just $6.5 million. Similarly, India exported $817 million worth of food preparations globally, but shipments to New Zealand amount to only $7.7 million.
GTRI said that the pharmaceuticals sector also stands out as a key opportunity area. New Zealand imported $962 million worth of medicines, yet India supplies only $75 million, despite its strong global competitiveness in the pharma sector.
Key challenge and opportunity
According to the think tank, this gap reflects under-representation rather than lack of capability, suggesting that the FTA can play a crucial role in bridging this divide.
GTRI noted that although the FTA has been concluded, most of its benefits are yet to come. If implemented effectively, the India-New Zealand FTA could help bridge the existing trade gap and transform a modest bilateral trade relationship into a deeper and more diversified economic partnership, the report added.