CII Advises MSMEs and Exporters to Leverage India-New Zealand Free Trade Agreement

Domestic exporters and micro, small, and medium enterprises (MSMEs) have been advised by the Confederation of Indian Industry (CII) to actively engage with New Zealand buyers and utilize existing government initiatives to maximize trade benefits.

Sanjay Budhia, Chairman of the CII National Committee on Exports and Managing Director of Patton International Ltd, stated that businesses should examine product-specific rules of origin and leverage schemes like the Export Promotion Mission. He noted that New Zealand can also function as a gateway to broader markets in Oceania and the Pacific Islands.

The bilateral free trade agreement between India and New Zealand was implemented on October 20 to strengthen trade and investment ties between the two nations.

Under the terms of the agreement, Indian exporters receive duty-free access across all tariff lines in New Zealand. Tariffs of up to 10 percent on sectors such as engineering goods, textiles, leather, and footwear have been reduced to zero.

The trade pact is expected to support a broad range of industries, including chemicals, plastics, electronics, pharmaceuticals, and processed foods, alongside labor-intensive sectors like textiles and leather.

Additionally, the agreement includes streamlined Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT) procedures. It also incorporates electronic certification along with the mutual acceptance of Good Manufacturing Practices (GMP) and Good Clinical Practice (GCP) inspection reports, which are intended to lower compliance costs for businesses.

"The implementation of the India-New Zealand free trade agreement opens up practical avenues for Indian MSMEs and manufacturers to expand their international footprint. With zero-tariff access across all lines and streamlined compliance procedures, businesses have a clear opportunity to reduce operational friction and tap into new regional markets. Exporters should carefully review the product-specific rules of origin and align their strategies to make the most of this bilateral framework." — Dr. Shishir Gupta, Founder & CEO, StartupLanes