by supplychainreport
India and New Zealand have reached a free trade agreement aimed at deepening economic ties and supporting growth amid ongoing global trade uncertainties. The agreement, finalized after nine months of negotiations, seeks to reduce tariffs, streamline regulatory requirements, and expand cooperation in goods, services, and investments. A formal signing is expected in the first quarter of next year after legal review of the negotiated text.
Under the agreement, India will receive zero-duty access for its goods to New Zealand, while Wellington will gain phased duty concessions on about 70% of India’s tariff lines, covering 95% of its exports. Key sectors benefiting from the deal include textiles, apparel, engineering goods, leather and footwear, marine products, horticulture, wood exports, and wool and meat. New Zealand has also committed to investments totaling $20 billion in India over the next 15 years. Certain sensitive products, such as dairy and select agricultural items, are excluded from the agreement.
Bilateral trade between the two countries totaled $2.4 billion in 2024, with officials projecting significant growth over the next five years. The pact is expected to enhance market access, strengthen supply chains, and create opportunities for exporters in both nations. Trade officials emphasized that the agreement is part of India’s broader strategy to diversify trade partnerships, reduce external trade risks, and anchor long-term export ambitions.
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