Union Minister Piyush Goyal with New Zealand Minister Todd McClay during a meeting, in New Delhi.
Credit: X/@PiyushGoyal
New Delhi: India needs to pair the newly announced Free Trade Agreement (FTA) with targeted export promotion, logistics support and regulatory facilitation to boost exports to New Zealand, the Global Trade Research Initiative (GTRI) has said.
In a research note GTRI said that “India remains under-represented in many products where it is a major global exporter and New Zealand is a large importer.”
New Zealand imported goods worth just $711 million from India during 2024-25 against over $10 billion from China and the overall import of $50 billion.
India’s exports to New Zealand remain miniscule even in the areas like pharmaceuticals and processed foods where there is ample potential.
Despite strong global competitiveness, India’s export of pharmaceuticals products to New Zealand stood at $75 million in 2024-25, against New Zealand’s total imports of $962 million worth of medicines during the year.
In processed food category India accounted for just $6.5 million or around one-tenth of New Zealand’s $602 million worth of import.
“Data point to under-penetration rather than weak competitiveness, making processed foods, pharma, machinery, electronics, vehicles, aerospace and furniture prime FTA-driven growth areas,” GTRI founder Ajay Srivastava said.
India is among the world’s largest exporters of refined petroleum products, with global exports of $69.2 billion. New Zealand imports about $6.1 billion worth of these products each year but sources only $2.3 million from India, while China supplies $181 million.
A similar gap exists in aluminium oxide. India exports more than $1.1 billion globally; New Zealand imports $255 million; yet India’s exports to New Zealand amount to just $0.2 million.
India’s global exports of telecom equipment exceed $21.7 billion. New Zealand imports $1.3 billion, but India supplies only $7.6 million, while China exports $707 million.