India and New Zealand are setting their sights on doubling bilateral trade to USD 3 billion within the next five years, focusing on resolving market access issues and fostering collaboration across key sectors.
With trade currently valued at USD 1.5 billion, India already enjoys substantial duty-free benefits in New Zealand, a market with an average import tariff of just 2.3%, compared to India’s 17.8%. This favorable tariff structure has supported Indian exports in sectors like textiles, machinery, and agriculture.
The Global Trade Research Initiative (GTRI) suggests that both countries could enhance trade by identifying products for early tariff relief and organizing business delegations and roadshows across India. Improved connectivity and leveraging cultural ties are also viewed as vital components of the strategy.
While India has proposed a free trade agreement with New Zealand, GTRI believes the benefits might be limited for Indian businesses due to existing duty-free privileges. Instead, efforts should focus on addressing specific market access challenges to create a more balanced trade relationship.
