The ratification of India-New Zealand FTA marks a new chapter in the bilateral trade between the two countries. The trade pact provides for zero-duty market access for all Indian exports including engineering goods, said Pankaj Chadha, Chairman, EEPC India.

India's engineering exports to New Zealand have been on the rise and are expected to grow further, he noted. India’s engineering exports to New Zealand grew from US$ 129.8 million in 2024-25 to US$ 140.5 million in 2025-26, showing steady momentum in a relatively small but high potential market.

Among the key engineering exports to New Zealand are automobiles, industrial machinery for the dairy sector, medical & scientific instruments, office equipment and products of iron and steel.

“The FTA with New Zealand offers opportunities for engineering goods exporters to diversify their product line-up. With the trade agreement coming into force next month, we can certainly target the doubling of engineering exports in the next five years to US$280-300 million,” added Chadha.

Meanwhile, the FTA is going to enter into force on 20 October 2026. The FTA was signed on 27th April 2026 at Bharat Mandapam, New Delhi, by Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.

The FTA, according to the government, also sets the stage for deeper investment gains for India, with New Zealand's commitment to facilitate US $20 billion in investment into India. This investment by New Zealand will benefit Indian agriculture, manufacturing, infrastructure and start-ups.