India-New Zealand FTA Positioned as Gateway for Oceania Trade Expansion

The India-New Zealand Free Trade Agreement (FTA) signed on April 27, 2026, is expected to support trade growth between the two countries and strengthen India’s trade engagement with the Oceania region.

According to a report by Brickwork Ratings, the agreement establishes a bilateral trade target of $5 billion over five years and positions India as a key trade partner in the Pacific region.

The report stated that the pact also envisages $20 billion of foreign direct investment into India over a 15-year period. Near-term FDI is expected to focus on sectors including pharmaceuticals, agri-tech, and education.

Emerging technologies and green energy have also been identified as longer-term areas of engagement within the proposed trade framework.

Under the agreement, India receives 100 per cent duty-free access for exports to New Zealand, while India will open 70 per cent of its tariff lines to goods imported from New Zealand.

The report added that access to technology and raw material inputs from New Zealand, including timber, coal, and metal scrap, could support manufacturing and industrial expansion between the two countries.

“The deal is a structural shift in India NZ economic relations, establishing a roadmap toward $5 billion in bilateral trade. Long term success depends on effective implementation, supply chain integration, and addressing non tariff barriers in subsequent rounds,” said Vikrant Chaturvedi, Associate Director, Brickwork Ratings.

The bilateral trade target set for CY 2031 indicates projected trade growth between the two countries at a 30 per cent CAGR.

The report further highlighted that increased capital inflows and institutional investor participation could support the Indian rupee over the medium term and help reduce foreign exchange volatility.

It also noted that Indian textile exports may benefit from the agreement, as textiles from India would receive the lowest effective tariff rate among major apparel exporters, compared with exports from Vietnam and Bangladesh.