by supplychainreport
India and New Zealand have reached a free trade agreement (FTA), aiming to strengthen economic ties and support growth amid ongoing global trade uncertainties.
The deal, negotiated over nine months, is expected to be formally signed in the first quarter of next year after legal review, according to India’s chief negotiator Petal Dhillon. It seeks to lower tariffs, ease regulatory barriers, and expand cooperation across goods, services, and investments.
Under the agreement, India will gain zero-duty access for all goods exported to New Zealand, while New Zealand will receive duty concessions and market access for approximately 70% of India’s tariff lines, covering 95% of its exports in a phased manner. Key Indian sectors benefiting from the deal include textiles, apparel, engineering goods, leather and footwear, and marine products. New Zealand’s gains are projected in horticulture, wood, coal, and sheep products such as wool and meat.
New Zealand has committed to investing $20 billion in India over the next 15 years as part of the agreement. Certain sensitive products, such as dairy and specific agricultural items, were excluded from the deal to address domestic considerations in India.
Bilateral trade between India and New Zealand currently stands at $2.4 billion, with both sides aiming to double this figure over the next five years. Trade analysts say the agreement provides a framework for deeper economic cooperation and growth potential.
New Zealand Prime Minister Christopher Luxon highlighted the FTA’s benefits for jobs and market access. “Boosting trade means more Kiwi jobs, higher wages, and greater opportunities for hardworking New Zealanders,” he said. Trade Minister Todd McClay noted that New Zealand secured unprecedented market access for apples, honey, and kiwi fruit into India.
Indian Trade Minister Piyush Goyal emphasized that the agreement reflects India’s strategy to expand trade with countries that complement its economy, providing new opportunities for exporters and investors.
The FTA follows India’s recent agreements with countries including the United Arab Emirates, Australia, Oman, and the United Kingdom, reflecting a broader strategy to diversify trade partnerships and strengthen export growth.
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