Exploring the Affordability of New Zealand Farm Products in India

The global trade landscape has witnessed significant shifts in recent years, with countries worldwide exploring new avenues for economic cooperation and growth. One such intriguing aspect is the trade relationship between India and New Zealand, two nations that share a history of diplomatic ties but have yet to fully explore their trade potential. In this article, we delve into the wages of Indians and the affordability of New Zealand farm products in India. We’ll also examine the trade barriers that have historically hindered closer economic ties and discuss recent talks between the two governments.

Wages of Indians and the Affordability of New Zealand Farm Products

India, with its vast and diverse population, has a range of income levels. The average wage in India varies widely depending on factors such as location, occupation, and industry. The average monthly wage of Indians living in urban areas is approximately INR 21,647 (NZ $438) in 2023 for the middle class, which is significantly lower than that in New Zealand.

This wage disparity can raise questions about the affordability of New Zealand farm products for the average Indian consumer. New Zealand is known for its high-quality dairy products, fresh fruits, and agricultural goods, which are often seen as premium options in the Indian market. These products tend to come with a higher price tag due to factors like transportation costs and quality standards.

Trade Barriers and Historical Challenges

Despite the potential for a robust trade relationship, several trade barriers have limited the exchange of goods between India and New Zealand in the past:

Geographic Distance: The vast geographical distance between the two nations increases transportation costs, making New Zealand products less competitive in the Indian market.

Tariffs and Import Regulations: Both countries have imposed tariffs and import regulations that hinder the flow of goods. These barriers can significantly increase the cost of New Zealand farm products for Indian consumers.

Agricultural Policies: India has historically had protectionist policies in its agriculture sector, aimed at safeguarding the interests of local farmers. These policies have made it challenging for foreign agricultural products, including those from New Zealand, to enter the Indian market.

Recent Talks and Trade Agreements

In recent years, both India and New Zealand have shown a renewed interest in strengthening their trade ties. High-level discussions and negotiations have taken place, with both governments exploring the possibilities of trade agreements that could benefit their economies.

One significant development was the initiation of talks for a free trade agreement (FTA) between India and New Zealand. An FTA could potentially reduce or eliminate tariffs on many products, making New Zealand farm products more affordable for Indian consumers. However, negotiating such agreements can be a complex and lengthy process, involving concessions from both sides.

Purchasing Power and Affordability

As India’s economy has continued to grow, the purchasing power of its citizens has also increased. This growth in income levels has created a burgeoning middle class with an appetite for high-quality, imported products, including New Zealand farm goods.

While New Zealand products may still be considered relatively expensive in comparison to locally produced alternatives, the rising purchasing power of Indians has made these products more accessible to a broader consumer base. Additionally, with potential trade agreements in the pipeline, we could see more competitive prices for New Zealand farm products in the Indian market in the near future.


The affordability of New Zealand farm products in India is a complex issue influenced by factors such as wage levels, trade barriers, and government policies. While historical challenges have impeded trade between the two nations, recent talks and negotiations for a free trade agreement suggest a brighter future for economic cooperation. As India’s middle class expands and its economy continues to grow, the affordability of New Zealand farm products for Indian consumers may become more attainable, potentially benefiting both countries’ economies.

Media Release 13 October 2023.