India and New Zealand are aiming to enhance bilateral trade, which currently stands at $1.5 billion, by addressing market access issues, promoting collaborations in key sectors, and improving connectivity, according to the Global Trade Research Initiative (GTRI).
The two countries are encouraged to set a target of doubling their two-way trade within the next five years. This can be achieved by identifying products that could benefit from early tariff relief and organizing business delegations and roadshows in India, the GTRI suggests.
In addition, GTRI notes that India’s proposed free trade agreement (FTA) with New Zealand would offer limited benefits for domestic companies, as they already have duty-free access to a significant portion of goods in the New Zealand market. New Zealand’s average import tariff is only 2.3 percent, compared to India’s 17.8 percent. Furthermore, 58.3 percent of New Zealand’s tariff lines are already duty-free, giving Indian products substantial access to the New Zealand market even without a trade agreement.
While negotiations on a Comprehensive Economic Cooperation Agreement (CECA) between India and New Zealand have stalled, GTRI highlights that both countries can take steps to strengthen their trade and economic ties. These steps include addressing market access issues, promoting collaboration in sectors like agriculture, pharmaceuticals, IT, education, and tourism, and improving connectivity between the two nations.
Bilateral trade between India and New Zealand reached $1.54 billion in 2023-24, which indicates significant untapped potential, according to GTRI. India’s goods exports totaled $538.3 million, while New Zealand’s exports amounted to $335.1 million.
India and New Zealand began CECA negotiations in 2010 to increase trade in goods, services, and investment, but the talks have remained stalled since 2015 after nine rounds of discussions.
The Indian diaspora in New Zealand, which includes over 250,000 people of Indian origin, presents a strong cultural link that could further enhance trade relations. GTRI also suggests that encouraging more Indian students to study in New Zealand by lowering fees and simplifying visa processes could boost the New Zealand education sector.
Promoting collaboration across sectors like agriculture, forestry, fintech, and education, as well as increasing direct flights between the two countries, could help unlock the full trade potential. Simplifying visa processes, including offering multi-entry, multi-year tourist visas, could make it easier for businesspeople and tourists to travel between India and New Zealand. Additionally, recognizing Indian professional qualifications could help address skill gaps in New Zealand’s labor market, particularly in sectors like IT, healthcare, and aviation.
India’s key goods exports to New Zealand include textiles, medicines, refined petrol, agricultural equipment, electronics, shrimps, diamonds, and basmati rice. New Zealand’s main exports to India include agricultural goods, minerals, apples, kiwifruit, meat products, and wool.
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