NEW DELHI/WELLINGTON, April 27 — India and New Zealand have signed a free trade agreement (FTA) that lowers tariffs on key fruit imports such as kiwifruit and apples, expands export opportunities, and eases visa access as both countries strengthen economic cooperation.
Concluded in December after about nine months of negotiations, the agreement will cut or remove tariffs on 95% of New Zealand’s exports to India, including seafood, iron, steel and scrap aluminium. New Zealand Prime Minister Christopher Luxon said the deal would broaden access to India’s large consumer market.
India’s Trade Minister Piyush Goyal said New Zealand has also committed to invest $20 billion, following the signing with Trade Minister Todd McClay in the presence of business leaders from both countries.
India excluded sensitive agricultural sectors such as dairy, coffee, sugar, spices, edible oils and rubber from market access commitments to protect domestic producers. The move was seen as a setback for New Zealand’s dairy sector, which is its largest export industry.
The agreement is part of India’s efforts to diversify exports and expand market access with global partners. The country is also advancing trade discussions with Britain, Oman and the European Union.
Under the deal, New Zealand will provide market access across 118 services sectors, including professional services, audio-visual, computer-related industries, construction, telecommunications and tourism.
The pact also includes a quota of 5,000 temporary employment visas for Indian professionals and 1,000 working holiday visas, along with eased post-study work rights for Indian students. The agreement still requires approval from New Zealand’s parliament, but is expected to pass following support from opposition lawmakers.
Tariff reductions will be implemented over time. Duties on wine will be lowered over 10 years, while dairy ingredients intended for re-export will receive immediate duty-free access. Duty-free access for bulk infant formula and other high-value dairy products will be phased in over seven years, and tariffs on high-value milk albumins will be reduced within a country-specific quota.
More than half of New Zealand’s exports to India will become duty-free immediately, with tariffs on other goods reduced gradually. The agreement is expected to support New Zealand’s goal of doubling exports within a decade.
The deal is also projected to benefit Indian export sectors including textiles, leather, pharmaceuticals, engineering goods and automobiles, while allowing duty-free access to industrial inputs such as wooden logs, coking coal and metal scrap.
Bilateral trade between the two countries remains modest. Indian data showed merchandise trade at about $1.3 billion in 2024/25, while total goods and services trade was estimated at roughly $2.4 billion in 2024.
#SupplyChainNews #TradeAgreement #GlobalTrade #ExportGrowth #MarketAccess
