India-New Zealand FTA to double India’s engineering exports to US$ 280-300 million in five years
- IBEF
- April 29, 2026
India’s engineering exports to New Zealand are expected to double over the next five years, rising from Rs. 1,328.39 crore (US$ 140.5 million) to around Rs. 1,890.8-2,836.2 crore (US$ 280-300 million), following the signing of the India-New Zealand Free Trade Agreement (FTA). The agreement provides zero-duty market access for all Indian goods, significantly enhancing export competitiveness and reducing trade barriers. According to EEPC India, the pact is likely to provide a strong growth boost to the engineering sector, particularly benefiting MSMEs by ensuring predictable and stable market access in a niche but high-potential destination.
Engineering exports to New Zealand have already shown steady growth, increasing by around 8% to Rs. 1,328.39 crore (US$ 140.5 million) in 2025-26 from Rs. 1,139.64 crore (US$ 129.8 million) in the previous fiscal. Key contributors to this growth include automobiles, machinery for the dairy sector and medical and scientific instruments, along with metal-based products such as iron, steel, aluminium and zinc. Industry experts highlight that zero-duty access and streamlined trade rules under the FTA will enable exporters to scale shipments significantly over the medium term. The development aligns with India’s broader strategy of leveraging FTAs to diversify export markets, with similar agreements with countries like Australia and the UAE already opening new opportunities. The engineering sector is targeting exports of Rs. 23.64 lakh crore (US$ 250 billion) by 2030, with trade agreements playing a critical role in achieving this goal.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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