India’s engineering exports to New Zealand are expected to witness a sharp rise over the next five years, potentially doubling from USD 140.5 million to around USD 280–300 million, following the signing of a comprehensive free trade agreement (FTA) that ensures zero-duty access for Indian goods.
According to EEPC India Chairman Pankaj Chadha, the agreement is set to provide a significant boost to the engineering sector, particularly benefiting micro, small and medium enterprises (MSMEs). The elimination of tariffs and improved predictability in trade rules are expected to reduce barriers and enhance India’s competitiveness in the New Zealand market.
Engineering exports to New Zealand have already demonstrated steady growth, increasing by about 8 per cent to USD 140.5 million in 2025–26, up from USD 129.8 million in the previous financial year. The expansion has been driven by strong demand for automobiles, dairy sector machinery, and medical and scientific instruments. In addition, metal-based products such as iron and steel, aluminium, and zinc have also contributed significantly to export performance.
“With zero-duty access and predictable trade rules, there is a clear opportunity to scale up engineering exports to around USD 280–300 million over the next five years,” Chadha said, underlining the sector’s optimism.
The development aligns with India’s broader strategy to strengthen its engineering export footprint through trade agreements. Existing FTAs with Australia and the United Arab Emirates have already opened new growth avenues, while ongoing negotiations with the European Union and the United States are expected to further accelerate export expansion.
India’s engineering sector has set an ambitious target of reaching USD 250 billion in exports by 2030, with FTAs playing a crucial role in driving scale, enhancing market access, and diversifying export destinations.