CII DG statement on India New Zealand FTA
Confederation of Indian Industry warmly welcomes the signing of the India–New Zealand Free Trade Agreement. It is a forward-looking step that will shape the next phase of bilateral economic engagement. Anchored in shared priorities of trade diversification, innovation, and sustainability, the agreement lays a strong foundation for a more dynamic, resilient, and future-ready partnership.
The FTA’s provision of 100% duty-free access for Indian exports is expected to unlock significant opportunities for trade expansion in the coming years. Key sectors such as transport and automotive, pharmaceuticals, plastics and rubber, electrical and electronic equipment, and mechanical machinery are poised to scale up exports, enhance competitiveness, and strengthen their presence in global markets. Notably, the pact is aimed at doubling bilateral trade to USD 5 billion over the next five years, signalling strong growth potential and renewed momentum in economic ties.
Looking ahead, the agreement’s innovative linkage between trade and investment is particularly noteworthy. New Zealand’s commitment to facilitate USD 20 billion in investment over 15 years is expected to catalyze the development of industrial infrastructure, manufacturing ecosystems, and innovation clusters across India. This model signals a shift towards deeper economic integration, where trade, investment, and job creation reinforce each other, paving the way for sustained and inclusive growth.
The agreement opens up promising avenues for future collaboration across high-growth sectors such as advanced manufacturing, agritech and food processing, digital technologies, pharmaceuticals, etc. By leveraging India’s scale and digital capabilities alongside New Zealand’s innovation strengths, both countries can co-create solutions, drive productivity, and build globally competitive industries. Partnerships in sustainable and green manufacturing are expected to further align with global climate goals and support the transition to low-carbon growth pathways.
Mr. Chandrajit Banerjee, Director General, CII, congratulated the Government of India on the successful conclusion of this landmark agreement, noting that it is poised to take India–New Zealand trade to new heights. “The FTA marks a significant milestone for Indian industry and will substantially enhance the competitiveness of Indian exports. By eliminating tariffs on key sectors such as textiles, leather, ceramics, and auto components, it unlocks new avenues for scale, market diversification, and sustained export growth. The agreement will enhance productivity, reduce trade costs, and provide strong support to MSMEs. By fostering innovation, attracting investment, and strengthening global linkages, while safeguarding key sectors, it reinforces India’s long-term growth trajectory and resilience in the global economy.”
We look forward to working closely with stakeholders in both nations to fully realize the potential of this agreement and to strengthen this strategic partnership for the future.