India-NZ FTA: $2 Billion Opportunity to Replace Chinese Imports

• India's FTA with New Zealand could unlock a $2 billion opportunity to replace Chinese imports in the medium to long term.
• The potential lies in sectors like machinery, electrical equipment, apparel, vehicles, plastics, and iron & steel, where India can replace 30-35% of New Zealand's current imports from China.
• New Zealand will grant zero-duty access to 100% of Indian exports, while India offers concessions on 70.03% of tariff lines.
• Key sectors like electrical machinery ($2.03B from China), general machinery ($1.6B), and textiles (>$850M) offer significant growth potential for Indian exporters.
• While replacing established Chinese supply chains will be gradual, the FTA is expected to be operational within 6-7 months, allowing Indian businesses to adapt.

Why It Matters: India's FTA with New Zealand creates a significant $2 billion market to reduce reliance on Chinese imports.