India-New Zealand FTA to boost engineering exports: Industry
The India-New Zealand Free Trade Agreement (FTA), which came into force on Tuesday, is expected to open up new opportunities for India's engineering sector, with engineering exports to the island nation projected to double over the next five years, according to Pankaj Chadha, Chairman of EEPC India.
Although New Zealand is a relatively small market for Indian engineering goods, it offers significant growth potential, Chadha said, expressing optimism about the opportunities created by the trade pact.
"The India-New Zealand FTA has come into force today, opening new opportunities for the engineering sector. New Zealand is a relatively small market for Indian engineering, but it holds high potential," he said.
India's engineering exports to New Zealand increased from $129.8 million in 2024-25 to $140.5 million in 2025-26. The implementation of the FTA is expected to provide further momentum to these exports by enabling Indian manufacturers to explore new opportunities in the market.
Automobiles, industrial machinery used in the dairy sector, medical and scientific instruments, office equipment, and iron and steel products are among the key engineering goods exported from India to New Zealand.
Chadha said the agreement would create opportunities for Indian engineering exporters, particularly micro, small and medium enterprises (MSMEs), to diversify their product portfolios and expand their presence in the New Zealand market.
"The FTA with New Zealand offers engineering goods exporters, especially MSMEs, the opportunity to diversify their product portfolio," he stated.
He added that stronger engineering trade ties with New Zealand would also contribute to India's broader ambition of achieving $250 billion in engineering exports by 2030.
EEPC India expects the country's engineering exports to New Zealand to reach $280-300 million over the next five years, nearly double the level recorded in 2025-26.
