India–New Zealand FTA: A Marker of India’s Maturing Trade Diplomacy

The Utilisation Challenge

Despite its promise, the agreement’s success will depend on implementation. India’s past experience with FTAs is sobering: utilisation rates have hovered around 25%, far below those in developed economies. Limited awareness, complex compliance requirements and non-tariff barriers have often blunted potential gains.

The India–New Zealand FTA attempts to address this through regulatory cooperation, streamlined customs procedures and transparency commitments. However, effective utilisation will require proactive engagement by industry associations, exporters and state governments. As bodies like the Confederation of Indian Industry have noted, the real dividends will come from expanding services trade, leveraging diaspora networks and building firm-level capacity.

What the Agreement Says About India’s Global Role

Beyond trade volumes — currently around $2.4 billion and projected to double by 2030 — the agreement carries broader strategic meaning. With this deal, India now has economic partnership agreements with all RCEP members except China, signalling selective but widening integration with the global economy.

More importantly, the depth of services access and mobility concessions reflects growing trust among developed economies in India’s trade policy stability. This strengthens India’s negotiating position in ongoing talks with the European Union and other partners.

In essence, the India–New Zealand FTA marks a coming of age. It demonstrates that India can negotiate balanced, high-quality agreements that protect domestic interests while embracing openness. In a fragmented global order, this ability may prove as valuable as the trade flows the agreement generates.