Indian exporters can help NZ cut China dependence
Bilateral free trade agreement to boost India’s exports to island nation, says GTRI
According to think tank GTRI, in 2024-25, New Zealand imported goods worth over $ 10 billion from China compared to just $ 711 million from New Delhi. Wellington's total imports in that fiscal year were $ 50 billion
New Delhi: Indian exporters in various sectors like agriculture, petroleum, pharma, apparel, electronics and auto have potential not only to scale up shipments to New Zealand but also help the island nation reduce its dependence on China.
According to think tank GTRI, in 2024-25, New Zealand imported goods worth over $ 10 billion from China compared to just $ 711 million from New Delhi. Wellington's total imports in that fiscal year were $ 50 billion.
GTRI's report stated that opportunities exist for various Indian sectors to increase penetration in the island nation, given a bilateral free trade agreement.
The sectors with potential include processed foods and agri-linked products, petroleum products and industrial chemicals, pharmaceuticals and healthcare, plastics, rubber and consumer goods, textiles and apparel, electronics and electrical equipment, automobiles and transport equipment, aerospace and high-value manufacturing, furniture and lighting.
India is a significant global exporter of bakery products, with exports of $ 602 million worldwide. New Zealand imports around $ 250 million of these goods annually, yet India supplies only $ 6.5 million compared to $ 21 million from China, the report said on Thursday.
The pattern repeats in food preparations also. India exports $ 817 million globally, New Zealand imports $ 455 million, and India's share is just $ 7.7 million.
In oil-cake and animal feed preparations, India's global exports range from $ 382 million to $ 507 million, and New Zealand's imports are $ 340 million to $ 379 million.
"India's exports are negligible, between $ 0.1 million and $ 5 million, even though Chinese competition in these lines is minimal. This suggests an untapped market rather than one blocked by entrenched suppliers," GTRI founder Ajay Srivastava said.
Similarly, India is among the world's largest exporters of refined petroleum products, with global exports of $ 69.2 billion.
New Zealand imports around $ 6.1 billion worth of these products each year, but sources only $ 2.3 million from India, while China supplies $ 181 million.
A similar gap, it said, exists in aluminium oxide. India exports more than $ 1.1 billion globally, and New Zealand imports worth $ 255 million. Yet, Indian exports to New Zealand amount to just $ 0.2 million.
In pharma also, India's export strength is clearest in medicines, with global exports at $ 20.6 billion.
New Zealand imports nearly $ 962 million worth of medicines, but India supplies only $ 75 million, against China's exports at $ 9.6 million in this category.
In biologicals and vaccines, India exports $ 1.6 billion globally, and New Zealand imports $ 328 million. India exports only $ 5.2 million, another case of significant under-penetration, Srivastava said.
"In women's woven apparel, India's global exports stand at $ 3 billion. New Zealand imports $ 179 million, but India supplies just $ 9.8 million, while China accounts for $ 112 million, despite India's well-established competitiveness in garments," he added.
