The agreement, concluded in December, will see New Zealand eliminate duties on all Indian exports, while India will reduce tariffs on 95 per cent of imports from the South Pacific nation
India and New Zealand on Monday signed a free-trade agreement (FTA) that significantly lowers tariffs on goods, expands market access, and eases entry for select agricultural products, as global trade faces pressure from ongoing geopolitical tensions.
The agreement, concluded in December, will see New Zealand eliminate duties on all Indian exports, while India will reduce tariffs on 95 per cent of imports from the South Pacific nation. The signing ceremony in New Delhi was attended by business leaders from both countries.
Over the past year, New Delhi has stepped up efforts to broaden its trade partnerships, including agreements with major economies such as the UK and the European Union, in a bid to diversify trade and reduce dependence on any single region.
New Zealand Prime Minister Christopher Luxon described the pact as transformative. “This is a once-in-a-generation agreement that gives New Zealand exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world,” he said in a post on X.
The agreement was formally signed by India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay. Following the signing, the deal will undergo New Zealand’s standard parliamentary scrutiny process, where it will be reviewed by a select committee before enabling legislation is introduced.
During negotiations, India had maintained that it safeguarded the interests of its domestic farmers, particularly in sensitive sectors such as dairy, while engaging with one of the world’s largest dairy exporters.
Under the agreement, tariffs on products including sheep meat, wool, and coal from New Zealand will be removed immediately. The deal also improves access for fruits such as kiwis, cherries, avocados, persimmons, and blueberries, potentially increasing their availability in the Indian market.
Landmark moment in the India-NZ partnership
Today marks a landmark moment in the India–New Zealand partnership, says PM Modi on the free trade agreement between the two countries.
The India–New Zealand FTA will greatly benefit farmers, youth, women, MSMEs, artisans, startups, students, and innovators, he said.
I am delighted that the India–New Zealand FTA will add unprecedented momentum to our developmental partnership, PM Modi added.
Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
SEBI registered research analyst
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