India and New Zealand sign a free trade agreement
India and New Zealand have signed a free trade agreement to deepen economic ties and expand market access as both countries grapple with increasing global trade disruptions.
The deal comes as New Delhi seeks to diversify its export markets to offset the impact of high US-imposed tariffs and instability on shipping and energy routes due to the Iran war.
For New Zealand, the deal is part of a broader effort to reduce dependence on China, its largest trading partner.
The agreement was signed in New Delhi on Monday by Indian Trade and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay.
The deal, negotiated for nine months and agreed in December, will reduce or eliminate tariffs on 95 percent of New Zealand’s exports to India, while also making all India’s exports to New Zealand duty-free.
Wellington has also pledged to invest US$20 billion ($A28 billion) in India over the next 15 years.
McClay said the deal marked a “once in a generation” opportunity to deepen economic ties at a time of rising global trade tensions and uncertainty.
India is New Zealand’s 12th largest export market and the value of bilateral trade is US$2.15 billion by June 2025, according to official data.
Goyal called the agreement a “defining milestone” and said India and New Zealand “chose each other” at a time when “the world economy is being reshaped”.
He said the agreement provides market access across sectors and establishes frameworks for investment and regulatory cooperation.
Sectors where Indian industries are expected to have increased market access include textiles and ready-made garments, engineering products, leather and footwear, and seafood. New Zealand is expected to see increases in horticulture, timber, coal, wool and meat exports.
India excluded dairy products and some agricultural products from the agreement to protect its agricultural sector.
Indian exporters have been under pressure from high US tariffs, especially on labour-intensive sectors such as textiles, auto parts and metals, since August 2025, as New Delhi continues negotiations on a separate bilateral agreement with Washington.
New Zealand’s trade agreements are generally bilateral.
The deal now needs to be approved by parliament and is expected to pass after the opposition New Zealand Labor Party backed it despite resistance from coalition partner and populist junior party New Zealand First.
