Industry representatives in Tamil Nadu say the India–New Zealand free trade agreement, which came into force on October 20, could significantly expand export opportunities for the state’s key manufacturing clusters.
Under the pact, goods exported from India to New Zealand will receive a full customs duty waiver. Earlier, some product categories faced duties of up to 10%, which have now been removed.
Exporters believe this will improve price competitiveness for Tiruppur’s knitwear, Ambur’s leather goods and footwear, and Chennai’s auto components and engineering products in the New Zealand market. They also see scope to increase shipments of cotton T-shirts, knit garments and sweaters.
Beyond industrial goods, the agreement may create new demand for value-added turmeric products from Erode, moringa-based items, spices and processed foods. Seafood exporters are also expected to benefit from the tariff relief.
However, industry sources cautioned that duty cuts alone will not guarantee orders. Rules of origin, quality certifications, environmental requirements and logistics costs remain key challenges for micro, small and medium enterprises. They urged the Tamil Nadu government and export promotion bodies to identify high-potential products and help smaller firms build market linkages and direct customer contacts in New Zealand.
