India-New Zealand FTA to shift jewellery exports from B2B to B2C models

The newly concluded India-New Zealand Free Trade Agreement (FTA) is set to trigger a massive overhaul of cross-border logistics, with the Gems and Jewellery Export Promotion Council (GJEPC) leading the charge to modernise last-mile delivery.

As both nations move toward the official signing in early 2026, the focus has shifted from tariff elimination to the physical infrastructure required to move high-value goods across the Indo-Pacific region.

Central to the agreement’s success is a series of strategic logistics partnerships designed to transition Indian exporters from traditional B2B models to high-growth B2C e-commerce. The GJEPC is currently in advanced discussions with FedEx to expand global delivery options, aiming to scale jewellery exports to a target of US$50 million.

This follows a critical foundation laid in March 2025, when the Council signed a Memorandum of Understanding (MoU) with DHL Express. That partnership introduced simplified customs processes and fully trackable shipments, significantly reducing the transit times and costs that have historically hindered MSME exporters.

"Logistics and last-mile delivery are the critical pillars for our shift toward consumer-direct delivery," said Sabyasachi Ray, Executive Director of GJEPC. "Our goal is to ensure that Indian craftsmanship can reach global doorsteps with the same efficiency as a local shipment."

The GJEPC announced on LinkedIn that the India–New Zealand FTA is a boost for India's gems and jewellery exports.

This FTA will give Indian products, including gems and jewellery, a competitive edge in the New Zealand market by offering tariff reductions of up to 2.5%. With exports currently at $16.61 million (2024), the sector aims to expand its market presence and increase exports to $50 million over the next three years.

Aviation and hub expansion
To accommodate the projected surge in trade volumes, India is fast-tracking major capacity upgrades at its primary aviation hubs, Navi Mumbai International Airport, which is scheduled to provide a massive boost to cargo-handling capabilities upon completion.

Delhi Airport Infrastructure's ongoing expansions are focused on streamlining the flow of high-value, low-volume goods, such as pharmaceuticals and luxury jewellery.

National carriers Air India and IndiGo are aggressively increasing their international belly capacity, aligning their fleet growth with the needs of the new FTA.

Technology-driven supply chains
The FTA also introduces dedicated Agri-Technology Action Plans for kiwifruit, apples, and honey. These plans go beyond simple trade by establishing Centres of Excellence in India to improve post-harvest practices and supply chain performance.

By integrating New Zealand’s cold-chain expertise, the agreement aims to reduce wastage and bolster the income of Indian farmers through more resilient logistics networks.

Logistics efficiency is further supported by a landmark agreement on pharmaceutical regulatory access. New Zealand will now accept Good Manufacturing Practice (GMP) inspection reports from comparable regulators like the US FDA and UK MHRA. This green channel for medical devices and medicines eliminates duplicative inspections, allowing life-saving products to clear customs and reach markets at record speeds.