India’s burgeoning exports to New Zealand hit a new high in 2024, crossing the $600-million mark for the first time, an analysis has found. Though exports from India have risen 62 percent, the trade between the countries remains muted, registering a 24 percent rise since 2019.
As the two countries restart Free Trade Agreement negotiations after more than a decade, merchandise trade is likely to get a boost.
“There is huge potential to grow bilateral trade,” visiting New Zealand Prime Minister Christopher Luxon said in New Delhi on March 17. Luxon, who arrived on March 16 for a five-day visit, met Prime Minister Narendra Modi and is also the chief guest at this year’s Raisina Dialogue.
Covid change
While the trade has increased from $862 million in 2015 to $1.2 billion in 2024, post-Covid, the nature of trade between the two nations has changed. From a deficit nation, India’s turned into a surplus nation when it comes to trade with Kiwis.
Between 2015 and 2019, India ran a deficit of $229.5 million with New Zealand with its exports falling short of imports. The coronavirus outbreak swung the balance of trade.
In 2020, India ran a trade surplus of $29 million, which grew to $132 million over the next three years. In 2024, India ran a surplus of $85 million, as New Zealand’s exports to India bounced back.
Mineral fuels have replaced pharmaceutical products as the top item of export from India, accounting for 13 percent of total trade. Electronics are also moving up the export ladders, with India’s growing prowess in manufacturing and assembly of mobile devices.
More concentrated
Trade between the countries has also become more concentrated over the past decade.
In 2024, 56.2 percent of India’s exports were accounted by the top 10 items, in contrast, in 2019, 48 percent of exports came from top 10 categories.
The concentration in terms of imports has reduced but still remains concentrated, with the top 10 commodities accounting for 87.5 percent of imports compared with 89.9 percent a decade ago.
