India and New Zealand have concluded negotiations on a long-awaited free trade agreement (FTA). The deal aims to double bilateral trade within five years and is expected to be formally signed in the first half of 2026, subject to approvals in both countries.
The agreement provides near-complete market access for Indian goods entering New Zealand, while offering substantial tariff relief for New Zealand exports to India. Under the pact, all Indian products will enjoy duty-free access to the New Zealand market. On the other side, tariffs will be eliminated or reduced on about 95 percent of New Zealand’s exports to India, with more than half of these products becoming duty-free from the first day of implementation.
However, sensitive sectors have been carefully ring-fenced. India has excluded several agricultural and farm-linked products from market access commitments, including dairy items such as milk, cream, cheese and yoghurt, along with coffee, sugar, onions, spices, edible oils and rubber. The exclusions are aimed at protecting domestic farmers and key rural industries.
The India–New Zealand pact is India’s third major trade agreement this year, following deals with the United Kingdom in May and Oman last week. The push comes as India seeks to diversify export destinations amid rising trade barriers, including higher tariffs imposed by the US.
New Zealand Prime Minister Christopher Luxon said the deal would create new opportunities for jobs, exports and long-term growth for New Zealand. As part of the broader economic partnership, New Zealand has also committed to investing $20 billion in India over the next 15 years.
Prime Minister Narendra Modi said the agreement, concluded in just nine months, reflected strong political will and a shared ambition to deepen economic cooperation between the two countries.
Bilateral trade between India and New Zealand stood at around $1.81 billion in 2024, driven mainly by pharmaceutical exports from India and forestry and agricultural products from New Zealand.
