India and New Zealand Seal Trade Pact Following December Negotiations
India and New Zealand Sign Historic Free-Trade Agreement
On April 27, India and New Zealand finalized a free-trade agreement (FTA) following the conclusion of negotiations on December 22 last year. The pact was signed in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart, Todd McClay in New Delhi.
Talks for the trade deal were launched in March 2025 and progressed through multiple rounds before both sides reached an agreement. The India-New Zealand FTA is expected to significantly boost bilateral trade, with Wellington offering zero-duty access to 100 percent of Indian exports. New Delhi, in turn, has agreed to eliminate tariffs on 70.03 percent of tariff lines, covering about 95 percent of New Zealand’s exports by value.
| Country | Tariff Elimination on Indian Exports | Tariff Elimination on New Zealand Exports |
|---|---|---|
| New Zealand | 100% | 70.03% (covering 95% of exports by value) |
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The agreement includes a commitment by New Zealand to facilitate around $20 billion in investment into India over the next 15 years. India's key exports currently include pharmaceuticals, textiles, engineering goods, and refined petroleum products, while imports from New Zealand are led by wood and forestry products, wool, iron and steel, and agricultural items such as fruits.
Key New Zealand export sectors expected to benefit include horticulture (such as apples and kiwifruit), forestry, seafood, wool, meat, and a range of industrial goods, with tariffs either eliminated on entry or reduced in a phased manner. High duties on products like wine are also set to be lowered, improving competitiveness in the Indian market. However, dairy, a sensitive sector for India, has been kept out of the agreement.
Total bilateral trade in goods and services between India and New Zealand was around $2.4 billion in FY25. The FTA has the potential to expand India-New Zealand trade and investment, particularly in areas such as agritech, food processing, clean energy, and leveraging markets in both countries and across the world.
Investor Takeaway
India and New Zealand's trade pact may lead to increased trade and investment between the two nations.
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