New Zealand’s trade in higher‑value timber products has emerged as a clear winner from advancing talks with India, one of the world’s top ten timber importers. Forestry, Trade and Investment Minister Todd McClay led a delegation of 13 New Zealand timber companies across India last week, deepening ties and showcasing the country’s premium wood products.
“This mission delivered the first tangible results under the Letter of Intent on Forestry Cooperation signed earlier this year,” Minister McClay said, noting that the visit gave exporters valuable insight into India’s forestry policies and its fast‑growing domestic market.
As it stands, wood and woodeen products are already New Zealand’s largest goods export to India, worth NZ$134 million in the year to June 2025, with a delegation of Indian forestry businesses slated to tour New Zealand in February 2026. And whilst logs and pulp remain the backbone of current trade, McClay stressed that the real opportunity lies in processed timber products that match India’s rapid urbanisation and its emphasis on sustainable construction.
The initiative follows a visit to New Zealand by India’s Minister of Commerce and Industry, Piyush Goyal, underscoring both governments’ commitment to a deeper strategic relationship. Earlier this month, Minister Goyal urged both countries to explore new avenues of cooperation across sport, education, technology, tourism, maritime affairs, and forestry during remarks at the India‑New Zealand Business Forum in Auckland.
Negotiations toward a long‑sought free trade agreement are also advancing.
Delegates from New Delhi and Wellington began talks on November 3, focusing on trade in food, services, and rules of origin. Officials described the discussions as constructive, with Goyal highlighting India’s vast and fast‑growing marketplace as an opportunity for New Zealand traders, while India looks to leverage New Zealand’s technological expertise and niche capabilities.
India is already one of New Zealand’s most important log export markets, and the forestry sector has seen a surge in pulp and higher‑value wood products. Analysts say tariff relief, clearer sanitary and phytosanitary rules, and deeper regulatory cooperation could drive trade far beyond the NZ$326 million peak reached before the pandemic. The current trade between the two countries is valued at NZ$3.14 billion, with forest products alone accounting for NZ$134 million. This includes a notable increase in wood products to NZ$76.5 million, up from NZ$9.5 million in 2023.
