India and New Zealand signed a free trade agreement on Monday in New Delhi, aiming to deepen economic ties and expand market access amid rising global trade disruptions. The deal was signed by India's Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay.
Under the agreement, tariffs will be eliminated on 95 per cent of New Zealand's exports to India, while all Indian exports to New Zealand will become duty-free. New Zealand has also committed to invest 20 billion dollars in India over the next 15 years. Bilateral trade between the two countries stood at 2.15 billion dollars in the year to June 2025.
McClay described the deal as a 'once-in-a-generation' opportunity to strengthen ties at a time of global trade uncertainty. Goyal called it a 'defining milestone' and said both countries had chosen each other as the world economy is being recast. The agreement comes as India seeks to diversify export markets following steep US tariffs, while New Zealand aims to reduce reliance on China, its largest trading partner.
Indian sectors expected to benefit include textiles, engineering goods, leather, footwear, and marine products. New Zealand anticipates increased exports in horticulture, timber, coal, wool, and meat. India has excluded dairy and certain agricultural products to protect its farming sector.
The deal, negotiated over nine months, now requires ratification by New Zealand's parliament. The opposition Labour Party has backed it, though coalition partner New Zealand First has expressed resistance.
