India and New Zealand announced on Monday that they have reached a free trade agreement, aiming to deepen economic ties and support growth amid global trade uncertainties.
The move comes as New Delhi accelerates efforts to diversify export markets to offset the impact of high U.S. import tariffs, News.Az reports, citing AP.
A formal signing of the agreement is expected in the first quarter of next year, following legal review of the negotiated text, India’s chief negotiator Petal Dhillon told reporters.
Negotiated over nine months, the India-New Zealand trade deal is designed to lower tariffs, ease regulatory barriers, and expand cooperation in goods, services, and investments. It reflects India’s push to secure trade partnerships beyond traditional markets as global commerce faces challenges from unpredictable tariffs, geopolitical tensions, and slowing growth.
Under the agreement, India will gain zero-duty export access for all its goods to New Zealand, while Wellington will receive duty concessions and market access for about 70% of New Delhi’s tariff lines, covering 95% of India’s exports in a phased approach. Key Indian sectors benefiting from duty-free exports include textiles, apparel, engineering goods, leather and footwear, and marine products. New Zealand’s major gains are expected in horticulture, wood products, coal, and sheep wool and meat.
As part of the deal, New Zealand has committed to invest $20 billion in India over the next 15 years, the Indian Trade Ministry said.
India has excluded certain products from the deal, including dairy items such as milk, cream, whey, yogurt, and cheese, as well as animal and vegetable products like goat meat, onions, and almonds, citing “domestic sensitivities.”
While bilateral trade between India and New Zealand remains modest compared with India’s larger partners, officials expect significant growth potential. Merchandise goods and services trade totaled $2.4 billion in 2024, and the two sides aim to double that figure within five years, Trade Secretary Rajesh Agarwal said.