India and New Zealand announce trade pact making majority of goods trade duty free
New Delhi, India – March 17: Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon witness the exchange of memoranda of understanding during a joint press conference held at Hyderabad House in New Delhi on March 17, 2025.
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India and New Zealand It was announced on Monday A free trade agreement that will make most trade in goods between the two countries duty-free.
The trade agreement, which will be reviewed a year later, will be signed in the first half of next year.
“This historic agreement eliminates and reduces tariffs on 95% of New Zealand’s exports,” New Zealand Trade and Investment Minister Todd McClay said in a statement. he said, adding that around 57% of exports from the country will be duty-free in India “from day one”.
According to a statement from India, the Pacific island nation will also invest $20 billion in India over the next 15 years and allow mobility of professionals, skilled workforce and students from India to New Zealand.
India has also secured a “zero duty market” on all its exports to New Zealand, which include textiles, ready-made garments, leather, footwear, seafood, gems and jewellery, handicrafts, engineering products and automobiles.
“Today this Free Trade Agreement building “initiating trade and opportunities between people,” said Piyush Goyal, India’s Commerce Minister.
He added that the agreement will give Indian businesses and youth the opportunity to “learn, work and grow on the global stage”.
India will eliminate tariffs on mutton, wool, coal and almost all forestry and wood exports. New Delhi will also allow duty-free access to dairy products and other food supplies for re-export.
But to ensure protection of farmers and domestic industry, New Delhi said market access does not extend to dairy products, coffee, milk, cream, cheese, yoghurt, whey, casein, onion, sugar, spices, edible oils and rubber.
Ranjeet Mehta, CEO and general secretary of Indian industry body PHDCCI, said India’s trade deal with New Zealand “provides policy certainty and creates a vision for long-term economic resilience by reducing input costs for manufacturing”.
Bilateral trade in goods between the two countries stood at $1.3 billion in 2024-25, while total trade in goods and services was $2.4 billion in 2024. “The FTA provides a stable and predictable framework to unlock the full potential of this relationship,” India’s Ministry of Commerce said. he said.
FTA is India’s third agreement this year Free trade agreement with the UK and another agreement with Oman in July earlier this month.
The deals come at a time when the United States, New Delhi’s largest trading partner, is imposing a 50% tariff on India’s goods exports, including a 25% tariff on Russian oil purchases.
India, which aims to be the dynamo of exports, is looking for ways to diversify its exports to compensate for the impact of US customs duties.
After higher tariffs came into force in August, India’s exports to the US fell nearly 12% in September and 8.5% in October, before a sharp growth of 22.6% in November.
