Zero tariffs under NZ-India FTA could lift Indian exports in key sectors

India and New Zealand activated their free trade pact on October 20, coinciding with Vijayadashami, eliminating import duties on a range of Indian products. Commerce and Industry Minister Piyush Goyal described the deal as a mutual victory, while Protiviti’s managing director Saurav Kumar highlighted potential gains for sectors such as engineering goods, automotive parts, textiles, leather, pharmaceuticals, processed foods, IT services and professional consulting.

Kumar stresses that competitive pricing, reliable supply chains and adherence to local standards are essential for translating duty-free access into sustained export growth. He notes that freight expenses, inventory management, certification and distribution challenges could erode tariff savings, particularly for smaller firms. Although New Zealand’s market is modest, it could serve as an additional destination to diversify India’s export base and reduce reliance on larger markets. The agreement’s impact will be measured over the next two to three years through export volumes, repeat orders and profitability.