India–New Zealand Conclude Landmark Free Trade Deal to Boost Bilateral Trade
New Zealand and India on Monday announced the conclusion of negotiations on a long-awaited free trade agreement (FTA) aimed at doubling bilateral trade within the next five years. The pact will eliminate or reduce tariffs on 95% of New Zealand’s exports to India, with more than half becoming duty-free from day one, while all Indian goods will gain duty-free access to the New Zealand market. New Zealand also committed to investing $20 billion in India over the next 15 years, underscoring the depth of the economic partnership.
New Zealand Prime Minister Christopher Luxon described the agreement as delivering “wide-ranging and significant” gains, highlighting India’s status as the world’s most populous nation and fastest-growing major economy. Two-way trade between the countries stood at about $1.81 billion in 2024, led by Indian pharmaceutical exports and New Zealand’s forestry and agricultural products. Indian Prime Minister Narendra Modi said the deal, concluded in just nine months, reflected strong political will and a shared ambition to deepen economic ties.
The agreement, expected to be signed in the first half of 2026, excludes sensitive Indian sectors such as dairy, sugar, spices, edible oils and rubber to protect domestic producers. While the Indian government views the deal as part of its broader push to diversify exports amid higher U.S. tariffs, political hurdles remain in New Zealand. Coalition partner New Zealand First has opposed the pact, arguing it concedes too much, particularly on immigration and dairy, raising uncertainty over parliamentary approval despite the governing coalition holding a majority.
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