India and New Zealand finalize a free trade agreement, eyeing growth as global uncertainties persist – UK Times

India and New Zealand reached a free trade deal, seeking to deepen economic ties and shore up growth at a time of mounting global trade uncertainties, officials said Monday.

The move comes as New Delhi accelerates efforts to diversify export destinations as part of a broader strategy to offset the impact of steep U.S. import tariffs.

A formal signing of the agreement between India and New Zealand is expected in the first quarter of next year after legal scrubbing of the negotiated text, India’s chief negotiator Petal Dhillon told reporters.

The India-New Zealand trade agreement, negotiated over nine months, aims to lower tariffs, ease regulatory barriers and expand cooperation across goods, services and investments.

It underscores India’s push to lock in trade partnerships beyond traditional markets as global commerce faces strains from unpredictable tariffs and geopolitical tensions, slowing growth and raising protectionism.

As part of the deal, India would get zero-duty-export access for all its goods to New Zealand while Wellington would get duty concessions and market access for about 70% of New Delhi’s tariff lines, covering 95% of its exports in a phased manner, officials said.

India’s major sectors that will gain from tax free exports include textiles, apparel, engineering goods, leather and footwear, and marine products, while New Zealand’s major gains will be in horticulture, wood exports and sheep wool, among others.

New Zealand has committed investments worth $20 billion in India over a period of 15 years as part of the agreement, India’s Trade Ministry said.

New Delhi has excluded from the deal dairy imports such as milk, cream, whey, yoghurt, and cheese, along with animal and vegetable products, including goat meat, onions and almonds, citing “domestic sensitivities.”

Bilateral trade between India and New Zealand remains modest compared with New Delhi’s bigger partners, but officials said the deal has strong growth potential. Two-way trade that includes merchandise goods and services stood at $2.4 billion in 2024, which the two sides hope to double in about five years, Trade Secretary Rajesh Agarwal said.

New Zealand Prime Minister Christopher Luxon said in a post on X Monday that he spoke to his Indian counterpart Narendra Modi on conclusion of the talks. He said New Zealand’s exports to India are forecast to increase by $1.1 billion to $1.3 billion annually over the coming two decades as a result of the agreement.

“Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders,” he said.

A statement from Modi’s office said the trade agreement would serve as a catalyst for greater trade, investment, innovation and shared opportunities between both countries.