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NZ India FTA

Illuminate India Programme

What the NZ-India FTA means for exporters

India Market Guide

Frequently Asked Questions

__The opportunity__

Pan Pac has been active in India since 2016 and already has an established pulp business in the market. The next phase of opportunity is broader, as demand grows for pulp, logs and higher-value wood products driven by urbanisation and growth in manufacturing, packaging, and furniture. 

For Pan Pac, India has not been a quick-win market. Finding success has required sustained time in market, consistent customer engagement and deliberate investment in long-term partnerships, says Tony Clifford, Managing Director, Pan Pac. 

“We visited one of the largest purchasers of pulp for three years before they agreed to a trial,” he says. 

That has meant meeting customers in India to understand their needs and bringing Indian buyers to New Zealand to see Pan Pac’s operations and quality systems first-hand and tell their forestry story. 

__How Pan Pac approached the market__

Pan Pac spent its early years in India visiting the market regularly, attending trade shows, meeting customers and learning where its products could meet local demand. 

Success was not overnight. Patience, persistence and strong local partnerships have helped Pan Pac find opportunities, fill market gaps and build a thriving pathway in India. 

That perseverance paid off. Despite a slow start, India now accounts for around 60% of Pan Pac’s pulp business, and the relationships it has built there reach around 70% of the Indian pulp industry. 

“India has been a good market for us,” says Tony. “The board making industry has grown and is now our largest market for pulp.”

The company continues to use trade shows to test demand, meet priority buyers and identify practical follow-up opportunities.

__Navigating freight challenges__

While providing an alternative supply chain is attractive to customers in India, New Zealand exporters face challenges with freight costs due to lower FOB (Free On Board) return. 

“The freight chain into India is heavily influenced by Europe,” notes Tony. “It’s cheaper for Europe-based producers to export to India than China due to two-way trade, so they can lower the freight price to be more competitive.”   

Pan Pac has been engaging with other large primary industry sectors to see what can be done about consolidating freight to India.   

“It’s a bit of a ‘chicken and egg’ problem,” he says. “To get started in India you need competitive freight costs – but often competitive freight costs don’t occur until volume reaches critical points for direct shipments to be viable for shipping lines.”

__Why the NZ-India FTA matters__

Once it enters into force on 20 October 2026, the New Zealand–India Free Trade Agreement (FTA) will strengthen opportunities in this sector by removing tariffs on more than 95% of forestry and wood products from day one. For companies like Pan Pac, this can help improve competitiveness, support customer development and make it easier to tell a higher-value New Zealand story in India. 

“The FTA helps opens the door, but sustainable success still depends on the market work behind it: trusted relationships, clear product positioning, reliable supply and consistent engagement with customers in India," notes Tony. 

__What this means for you__

Pan Pac’s experience shows that India rewards exporters willing to invest time before expecting results. Regular market visits, trade shows and customer conversations helped Pan Pac test demand, understand product fit and build the relationships needed for long-term growth. 

Tariff advantages also work best when they are paired with clear positioning, local market knowledge and reliable supply. 

Ultimately, Tony suggests companies enter the market with a long-term plan: use market visits to understand customer needs, invest in trusted local relationships, and be ready to build demand before expecting quick commercial results. 

He adds, "Engage regularly, either through your agent or directly. Customers favour face-to-face meetings or phone calls over emails."

Pan Pac 

Mānuka Collective

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Explore NZTE's resources on the NZ-India Free Trade Agreement. Find myNZTE guides, tools and events to help New Zealand exporters do business in India.