Both nations should target doubling bilateral trade within five years through tariff relief and business collaborations
India and New Zealand must work on addressing market access issues, promoting sector collaborations, and improving connectivity to increase bilateral trade, which currently stands at just USD 1.5 billion, according to the Global Trade Research Initiative (GTRI). The think tank suggests that both countries set an ambitious target to double two-way trade within five years, focusing on products for early tariff relief and facilitating business delegations, reported business-standard.com.
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GTRI emphasized that India’s proposed free trade agreement (FTA) with New Zealand might not offer significant benefits for Indian companies, as New Zealand already provides duty-free access to many Indian products
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New Zealand’s average import tariff is just 2.3%, with 58.3% of its tariff lines being duty-free
Ajay Srivastava, Founder of GTRI, pointed out that the Comprehensive Economic Cooperation Agreement (CECA) talks, which began in 2010, stalled in 2015 but both countries can still improve trade relations by addressing existing barriers. He mentioned that collaborations in agriculture, pharmaceuticals, IT, education, and tourism can further strengthen the ties.
GTRI calls for steps to unlock the trade potential between India and New Zealand by improving market access, promoting key sector collaborations, and boosting connectivity.
India’s bilateral trade with New Zealand reached USD 1.54 billion in 2023-24, but both countries have yet to reach their full trade potential. With India’s goods exports at USD 538.3 million and New Zealand’s exports at USD 335.1 million, there is room for growth.
The GTRI also highlighted the strong Indian diaspora in New Zealand, with over 250,000 people of Indian origin, which can serve as a bridge for further economic engagement. Encouraging more Indian students to study in New Zealand and simplifying visa processes could also benefit both nations.
Improving connectivity between the two countries, such as increasing direct flights and introducing multi-entry tourist visas, will enhance trade and tourism. The think tank also suggested recognizing Indian professional qualifications to help fill skill gaps in New Zealand’s labor market.
India’s key exports to New Zealand include textiles, medical supplies, refined petrol, agricultural equipment, and more, while major imports from New Zealand include agricultural goods, wool, meat products, and minerals.
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