From mint · Bhanu Pratap · · 1m 20s
New Zealand FTA boosts Indian exports
Zero tariffs under India-New Zealand FTA could expand Indian exports in engineering, automotive, pharmaceuticals and textiles.
In brief
Zero tariffs under India-New Zealand FTA could expand Indian exports in engineering, automotive, pharmaceuticals and textiles. India-New Zealand FTA allows zero tariffs for engineering goods, automotive components, pharmaceuticals, textiles and processed foods. Originally reported by mint.
India-New Zealand FTA kicks in
India-New Zealand FTA came into force on October 20, 2026.
Sectors benefit from zero tariffs
Engineering goods, automotive components, pharmaceuticals, textiles and processed foods could see export growth.
Saurav Kumar's view
Protiviti India MD Saurav Kumar says zero-duty access could improve competitiveness but sustained growth depends on pricing, quality and logistics.
Competitive advantage varies
The competitive advantage would vary across product categories and depend on trade arrangements with competing countries.
Logistics challenges remain
Freight costs, shipment volumes, inventory management, certification and local distribution could erode savings from tariff reductions.
New Zealand as market
New Zealand could serve as an additional market for Indian exporters but not a substitute for larger destinations.
Success factors
Indian businesses need competitive advantages, local buyer relationships and strong quality standards to capitalize on the FTA.
Measuring success
The FTA's impact will be assessed over two to three years through export growth, repeat orders and export profitability.
At a glance
India-New Zealand FTA allows zero tariffs for engineering goods, automotive components, pharmaceuticals, textiles and processed foods.
