India, New Zealand sign FTA; zero duty on all Indian exports to Kiwi market

India and New Zealand on April 27 signed a landmark Free Trade Agreement (FTA), providing Indian exporters duty-free access to the New Zealand market across all tariff lines.

The agreement was signed in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay, marking a significant step in deepening bilateral economic engagement.

Under the pact, New Zealand will eliminate duties on 100% of Indian exports, covering thousands of product categories. In return, India has agreed to reduce or eliminate tariffs on about 70% of its tariff lines, covering nearly 95% of New Zealand’s exports by value.

The deal is expected to boost trade and investment flows between the two countries, with both sides aiming to significantly expand bilateral trade in the coming years. New Zealand has also committed to investing around $20 billion in India over the next 15 years.

Key Indian sectors such as textiles, leather, engineering goods and pharmaceuticals are likely to benefit from improved market access, while New Zealand exporters are expected to gain in areas such as wool, wood, wine, coal and agricultural products.

However, India has excluded several sensitive sectors — including dairy, edible oils and certain agricultural products — from tariff reductions to protect domestic producers.

The agreement, concluded after years of negotiations, is being seen as a strategic move by both countries to strengthen economic ties and diversify trade partnerships in a changing global trade environment.

The FTA will come into force after necessary ratification processes, particularly in New Zealand, where parliamentary approval is required.