Kolkata, Apr 28 (PTI) India’s engineering exports to New Zealand are poised to double over the next five years from USD 140.5 million to USD 280-300 million, following the signing of a free trade agreement (FTA) that grants zero-duty market access to all Indian goods, officials said.

Industry body EEPC India's Chairman Pankaj Chadha said the pact would provide a strong tailwind to the sector, particularly MSMEs, by lowering trade barriers and ensuring stable market access in a relatively small but high-potential destination.

Engineering shipments to New Zealand have already shown steady traction, rising around 8 per cent to USD 140.5 million in 2025-26 from USD 129.8 million in the previous fiscal.

Growth has been led by automobiles, dairy sector machinery and medical and scientific instruments, while metal-based products such as iron and steel, aluminium and zinc have also contributed meaningfully.

“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.

The development comes amid a broader push by India to expand its engineering exports footprint through trade agreements. Existing pacts with Australia and the United Arab Emirates have already opened new avenues, while proposed deals with the EU and the US are expected to further accelerate growth.

The engineering sector is targeting exports of USD 250 billion by 2030, with FTAs seen as a key lever to drive scale and market diversification. PTI BSM NN

Zero-duty market access through a free trade agreement is expected to boost India's engineering exports to New Zealand. A free trade agreement with New Zealand provides zero-duty market access for Indian goods and is expected to support a substantial increase in India's engineering exports over the next five years. The arrangement is described as lowering trade barriers and giving exporters, particularly MSMEs, more stable access to a relatively small but high-potential market. The agreement is presented as part of a broader trade strategy in which free trade pacts are used to expand export opportunities, diversify markets, and strengthen the engineering sector's longer-term export target.