India-New Zealand FTA opens new export opportunities for MSMEs: CII

New Delhi: Indian exporters, particularly micro, small and medium enterprises (MSMEs), should move quickly to capitalise on the opportunities created by the India-New Zealand Free Trade Agreement (FTA), which came into effect on October 20, industry body CII said on Thursday.

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Sanjay Budhia, Chairman of the CII National Committee on Exports and Managing Director of Patton International Ltd, said businesses must proactively establish connections with New Zealand buyers, understand product-specific rules of origin and utilise government export promotion initiatives to secure a stronger foothold in the market.

"I urge exporters, especially MSMEs, to move early, engage with New Zealand buyers, check product-specific rules of origin, and make full use of schemes such as the Export Promotion Mission. New Zealand can also serve as a gateway to the wider Oceania and Pacific Island markets," he said.

Zero-duty access to boost exports

Under the bilateral trade agreement, Indian goods will enjoy duty-free access across all tariff lines in New Zealand, eliminating import duties of up to 10 percent on several products.

Engineering goods, textiles, leather and footwear are expected to be among the major beneficiaries of the tariff reductions.

The agreement also offers significant opportunities for Indian manufacturers and exporters in chemicals, plastics, electronics, pharmaceuticals and processed food products.

Labour-intensive industries, particularly textiles, leather and footwear, could benefit from improved price competitiveness in the New Zealand market.

Lower compliance costs for businesses

Beyond tariff concessions, the agreement includes measures aimed at simplifying trade procedures and reducing regulatory barriers.

According to Budhia, streamlined Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) procedures will help exporters navigate regulatory requirements more efficiently.

Provisions relating to electronic certification and acceptance of Good Manufacturing Practices (GMP) and Good Clinical Practice (GCP) inspection reports are also expected to reduce compliance costs and facilitate smoother cross-border trade.

New Zealand could become gateway to Pacific markets

Budhia emphasised that Indian businesses should look beyond New Zealand's domestic market and explore opportunities across the wider Oceania and Pacific Island region.

The FTA could provide Indian exporters with a platform to expand their commercial presence in these markets, particularly in manufacturing and value-added products.

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However, translating tariff concessions into actual export growth will require businesses, especially smaller enterprises, to identify potential buyers, meet product standards and comply with rules of origin.

The agreement marks a fresh opportunity to strengthen bilateral trade and investment ties, with its success ultimately depending on how effectively Indian exporters utilise the market access and trade facilitation measures now available.

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