A Strong Existing Trade Relationship With Further Potential
Forestry and wood products are already an important part of New Zealand’s trade relationship with India.
New Zealand exported approximately NZ$193 million of forestry products to India in the year ended June 2026, making forestry one of New Zealand’s leading goods export categories to the Indian market.
The New Zealand–India Free Trade Agreement creates an important opportunity to build on this existing trade relationship. Under the Agreement, more than 95% of New Zealand’s forestry exports to India will be able to enter tariff-free from entry into force, with tariffs on almost all existing forestry trade phased out over seven years. The Agreement is scheduled to enter into force on 20 October 2026.
Why India Matters for New Zealand Forestry
India’s continuing urbanisation, infrastructure development and construction activity are supporting demand for building materials and other wood products.
For New Zealand businesses, this creates opportunities across existing timber exports as well as potentially higher-value and more specialised areas of the sector. Potential areas of commercial engagement include:
- Timber and wood products
- Processed and value-added wood products
- Engineered wood and construction applications
- Sustainable building materials
- Forestry technology and innovation
- Supply-chain and distribution partnerships
- Research and technical collaboration
The opportunity is not limited to the movement of physical products. New Zealand companies with expertise in forestry management, processing, technology, sustainability and specialised applications may also find opportunities to work with Indian businesses and institutions.
FTA Creates Greater Market Access
Forestry is one of the clearest examples of the practical impact of the India–New Zealand FTA.
MFAT identifies forestry as a major New Zealand export to India and states that over 95% of forestry exports will be able to enter tariff-free immediately from entry into force, with almost all remaining existing trade phased out over seven years.
This provides exporters with a clearer basis for assessing opportunities in the Indian market and strengthens New Zealand’s competitive position relative to suppliers whose products may not have equivalent preferential access.
Businesses should nevertheless assess the tariff treatment applicable to their specific product, together with rules of origin, customs requirements and any relevant regulatory or technical requirements.
Beyond Timber: Building Wider Sector Partnerships
The next phase of the relationship can extend beyond traditional commodity trade. There is potential for collaboration across:
- Forestry technology — Technology, data and innovation that can improve forestry productivity, processing and supply-chain efficiency.
- Value-added manufacturing — Opportunities to move further up the value chain through processed and engineered wood products.
- Sustainable construction — Wood and other renewable materials supporting construction and low-carbon building approaches.
- Research and innovation — Collaboration between businesses, research organisations and institutions on forestry, materials and technology.
- Supply chains and investment — Long-term commercial relationships between New Zealand suppliers and Indian manufacturers, distributors, developers and investors.
The FTA itself identifies forestry among the sectors where cooperation and technical assistance can support durable, mutually beneficial partnerships between New Zealand and India.
What Businesses Should Consider
For New Zealand forestry and wood-product businesses looking at India, the opportunity should be assessed beyond tariff reductions. Key considerations include:
- Identifying the right Indian customers and distribution partners
- Understanding product-specific market requirements
- Assessing opportunities for processed and value-added products
- Building relationships with construction and infrastructure businesses
- Exploring technology and innovation partnerships
- Understanding logistics and supply-chain requirements
- Assessing opportunities for longer-term commercial or investment partnerships
India’s scale means that successful market development will require a long-term approach and strong local relationships.
INZCCI’s Role
INZCCI can help connect businesses across the India–New Zealand forestry and wood-products ecosystem by facilitating business introductions, sector engagement, market intelligence and trade and investment opportunities.
Our focus is on helping businesses move from market interest to meaningful commercial connections.
For New Zealand forestry businesses, the FTA provides a stronger market-access foundation. The next opportunity is to build the relationships, partnerships and commercial models needed to make that access work in practice.
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