Industry chamber ASSOCHAM on Wednesday welcomed the entry into force of the India-New Zealand Free Trade Agreement (FTA), saying the pact would deepen India's economic engagement with the developed world and create fresh opportunities for exporters, manufacturers and small businesses.

ASSOCHAM President Nirmal K. Minda described the agreement as a winning partnership and said duty-free market access to New Zealand would particularly benefit Indian micro, small and medium enterprises (MSMEs), artisans, farmers and women entrepreneurs.

"The success of this agreement will be measured by the opportunities it creates and the difference it makes to the lives of people in both countries," Minda said in a statement.

He added that the first-ever export of a JCB machine from India to New Zealand, flagged off by Commerce and Industry Minister Piyush Goyal, reflected the growing strength of India's manufacturing sector.

Under the pact, New Zealand will provide immediate duty-free access for Indian exports across 8,284 product lines, covering sectors such as pharmaceuticals, textiles, machinery, engineering goods, gems and jewellery, footwear and leather.

The industry also highlighted that India's exports to New Zealand stood at $711 million in FY2024-25 and $567 million in FY2025-26, while imports were $587 million and $589 million, respectively.

India recorded a trade surplus of $124 million in FY2024-25 before moving to a marginal trade deficit of $22 million in FY2025-26.

The partnership includes dedicated action plans covering sectors such as kiwifruit, apples, honey, horticulture, forestry and livestock, with a focus on technology transfer, training and productivity enhancement.

Meanwhile, India has agreed to immediately eliminate duties on products including wood, wool and sheep meat, while phasing out tariffs on 35.6 per cent of tariff lines over a 10-year period.

The agreement also provides quota-based concessions on selected products including Manuka honey and kiwi fruit.

The agreement also contains provisions to facilitate professional mobility, including 5,000 temporary employment visas and 1,000 working holiday visas annually.

According to the industry chamber, the trade pact would help strengthen MSMEs, improve agricultural productivity and integrate Indian businesses more deeply into global value chains while expanding bilateral economic cooperation between the two countries.