Prime Minister of New Zealand Christopher Luxon shook hands with Indian counterpart PM Modi Narendra before their meeting at Hyderabad House in New Delhi,
It’s learnt that the India and NZ aim to double bilateral trade in 5 years
Deal expected to be signed in first half of next year
Dairy products from NZ excluded from the deal
Dec 22 .New Zealand and India said on Monday they had concluded talks on a free trade deal that would help to double bilateral trade over the next five years.
The agreement will eliminate or reduce tariffs on 95% of New Zealand’s exports to India with more than half of the products to be duty free on day one of the pact, while all Indian goods would have duty free-access to New Zealand. New Zealand also agreed to invest $20 billion in the Asian country in the next 15 years.
As per New Zealand PM the gains are wide-ranging and significant,” said New Zealand
Adding that India is the world’s most populous country and is the fastest-growing big economy, and that creates opportunities for jobs for Kiwis, exports and growth.
The deal makes good on a 2022 election promise from New Zealand’s governing National Party. If elected it would finalise a New Zealand-India free trade agreement in its first term.
Two-way trade between the two countries totalled about $1.81 billion in 2024, dominated by pharmaceuticals from India and forestry and agricultural products from New Zealand. The size of the trade between the nations is dwarfed by India’s total goods trade which exceeded $1 trillion in the 2024-25 financial year (April-March).
According to PM Modi in social media, the historic milestone concluded in just nine months and it reflects a strong political will and shared ambition to intensify economic ties amid the two countries
The Indian government said the free trade deal excluded market access to dairy, coffee, milk, cream, cheese, yoghurt, whey, caseins, onions, sugar, spices, edible oils and rubber, to protect its farmers and domestic industry.
India has been accelerating talks with partner countries to diversify its exports after Washington imposed a 50% tariff on Indian goods entering U.S. markets.
The trade deal with New Zealand is the third this year, following an economic partnership agreement with Oman announced on Thursday and one with United Kingdom in May.
The two countries are expected to sign the agreement in the first half of 2026, said thet New Zealand government. The parliamentary approval was not immediately assured. New Zealand First, with which the Nationals have a coalition and which holds eight of the 123 seats in parliament, would vote against the deal, said NZ First leader Winston Peters.
The coalition has 67 seats, but the Nationals only have 48 and rely on support from coalition partners, including NZ First.
The deal “gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy”, Peters said in a statement.
News Edit KV Raman
