India and New Zealand have reached a free trade agreement after nine months of negotiations, aiming to deepen economic ties at a time of broader global trade uncertainty. AP reported that the deal is intended to lower tariffs, reduce regulatory barriers and expand cooperation across goods, services and investment.
Under the agreement, India would gain zero-duty access for all of its goods entering New Zealand, while Wellington would secure phased concessions on about 70% of India’s tariff lines, covering roughly 95% of New Zealand exports. AP said the arrangement gives New Zealand especially strong access for apples, honey and kiwifruit, while India’s exporters would benefit in sectors such as textiles, apparel, engineering goods, leather, footwear and marine products.
The trade ministry in India said the agreement also includes $20 billion in planned New Zealand investment over 15 years. Officials on both sides framed the pact as a way to diversify trade partnerships as unpredictable tariffs and geopolitical tensions weigh on global commerce. AP said a formal signing is expected in the first quarter of next year after the legal scrubbing of the negotiated text.
Dairy remained a sensitive issue and was excluded from the deal, along with several other agricultural products including goat meat, onions and almonds. India’s negotiators cited domestic sensitivities, showing that even as both governments push to expand exchange, they have still drawn red lines around politically sensitive sectors.
The numbers remain modest by global standards. Two-way trade in goods and services stood at $2.4 billion in 2024, and both sides hope that figure can double within about five years. Trade Secretary Rajesh Agarwal said the pact has strong growth potential despite its current scale. One analyst quoted by AP called it less a breakthrough than a framework for deeper cooperation.
The wider context is India’s effort to reduce dependence on any single export market, especially as higher US import tariffs continue to pressure sectors such as textiles, auto components, metals and labor-intensive manufacturing. AP said India has accelerated talks with the European Union, Chile and Canada and recently concluded agreements with Britain and Oman.
For New Zealand, the deal opens a larger route into a huge consumer market. Prime Minister Christopher Luxon said Indian demand could increase New Zealand exports by as much as $1.3 billion annually over the next two decades. Trade Minister Todd McClay highlighted rare access for apples and honey and said the agreement gives New Zealand the best access for kiwifruit in India of any country.
The pact is not yet final, but it already signals a deliberate pivot by both countries toward more diversified trade relationships.
