By Alimat Aliyeva
India and New Zealand have announced that they have reached a
free trade agreement (FTA) expected to boost bilateral trade by
hundreds of millions of dollars and deepen economic ties between
the two countries, Azernews reports, citing
foreign media.
New Delhi and Wellington confirmed the breakthrough on Monday,
stating that the agreement is scheduled to be formally signed in
the first quarter of next year, following a final legal review of
the negotiated text.
The announcement comes at a time when governments worldwide are
seeking to diversify their trade relationships amid uncertainty
caused by sweeping U.S. tariffs introduced under President Donald
Trump. These policies have accelerated a global push toward
bilateral and regional trade deals as countries attempt to reduce
exposure to protectionism.
Under the agreement, India will gain zero-duty access for all of
its goods exports to New Zealand. In return, Wellington will
receive duty concessions and market access for approximately 70% of
India’s tariff lines, covering nearly 95% of New Zealand’s exports
to India on a phased basis, according to officials.
New Zealand aims to significantly expand exports of dairy
alternatives, fruit, wool, and wine to the Indian market, with
strong growth also expected in horticulture, wood products, and
sheep wool. On the Indian side, sectors set to benefit most from
tariff-free access include textiles and apparel, engineering goods,
leather and footwear, and marine products.
As part of the broader partnership, New Zealand has committed to
investing $20 billion in India over the next 15 years, India’s
Ministry of Commerce and Industry said. The agreement is also
expected to ease access for skilled Indian professionals to New
Zealand’s labor market, addressing workforce shortages in key
sectors.
India has intensified efforts to diversify its export
destinations as part of a wider strategy to protect its economy
from global shocks. Prime Minister Narendra Modi underscored this
approach earlier this month during trade talks with Russian
President Vladimir Putin in New Delhi, alongside discussions on
geopolitical tensions.
Despite expanding ties with multiple partners, India continues
to pursue a careful balance between Eastern and Western economies.
Commerce Minister Piyush Goyal reiterated on Monday that, in
addition to the New Zealand deal, India is also working on trade
agreements with the United States and Canada.
New Zealand Prime Minister Christopher Luxon said in a post on X
that exports to India are projected to rise by $1.1 billion to $1.3
billion annually over the next two decades as a result of the
agreement. “Boosting trade means more Kiwi jobs, higher wages, and
greater opportunities for hard-working New Zealanders,” he
said.
However, the deal has faced domestic criticism. New Zealand
First, a right-wing populist party, warned that the agreement
“gives too much away, especially on immigration,” according to a
statement cited by The New Zealand Herald.
The agreement also touches on sensitive areas for India. In
response, New Delhi excluded dairy imports—such as milk, cream,
whey, yoghurt, and cheese—from the deal, along with several animal
and agricultural products including goat meat, onions, and
almonds.
India’s chief negotiator, Petal Dhillon, said the agreement will
be signed once the legal review is completed, marking what both
sides describe as a significant milestone in Indo-Pacific economic
cooperation.