India-NZ FTA to act as gateway to Oceania with $5 bn trade target by 2031: Report

New Delhi, May 4 (IANS) The India‑New Zealand free trade agreement sets a bilateral trade target of $5 billion over five years and will act as a gateway to Oceania positioning India as a primary partner in the Pacific region, a report said on Monday.

The report from Brickwork Ratings said the pact also envisages $20 billion of foreign direct investment into India over 15 years and that near‑term FDI will reportedly target pharmaceuticals, agri‑tech and education.

Emerging technologies and green energy will remain longer-horizon plays in the emerging framework.

The agreement signed on April 27, 2026, secures 100 per cent duty‑free access for Indian exports to New Zealand while opening 70 per cent of India’s tariff lines to New Zealand goods.

The report added that access to New Zealand technology and raw material inputs such as timber, coal and metal scrap could accelerate the next phase of manufacturing and industrial scale-up 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 implies growth in trade between the two countries at a 30 per cent CAGR.

The report highlighted that higher capital inflows and institutional investor participation could support the Indian rupee over the medium term, reducing foreign exchange volatility.

New Zealand’s acceptance of Good Manufacturing Practice inspection reports from the United States Food and Drug Administration (US FDA), European Medicines Agency (EMA), and Medicines and Healthcare products Regulatory Agency (UK MHRA) eliminates duplicate regulatory checks, enabling faster market entry for Indian drug manufacturers.

Further, textiles from India gain the lowest effective tariff rate among major apparel exporters, garnering the sector price competitiveness versus exports from Vietnam and Bangladesh.

Leather exporters in Agra are best positioned for immediate scale, targeting an estimated $50 billion in exports by 2030.

Engineering goods, such as auto ancillaries, machinery, and chemicals, will also gain a cost advantage in NZ.

—IANS

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