India and New Zealand Conclude Free Trade Agreement
India and New Zealand have concluded negotiations on a long-awaited Free Trade Agreement, marking a major step in strengthening economic ties between the two countries. The agreement is expected to significantly expand bilateral trade and investment once it comes into force, following formal signing and domestic approval processes.
Key Features of the Trade Deal
Under the agreement, a large majority of goods traded between India and New Zealand will see tariffs reduced or eliminated. New Zealand exporters will gain improved access to the Indian market across multiple sectors, while Indian exporters will receive duty-free or preferential access to New Zealand’s market. The deal also includes provisions covering services, investment, and cooperation in emerging sectors.
Boost to Bilateral Trade and Investment
Both governments have said the agreement is expected to substantially increase two-way trade over the coming years. New Zealand has indicated plans to scale up long-term investment in India, particularly in manufacturing, infrastructure, renewable energy, and innovation-driven industries. The agreement is also aimed at improving supply chain resilience and creating new opportunities for businesses in both countries.
Mobility and Services Cooperation
In addition to trade in goods, the agreement provides for enhanced cooperation in services and people-to-people links. Provisions related to temporary entry and work opportunities are intended to support businesses, professionals, and skilled workers, while strengthening educational and cultural exchanges.
Strategic Context and Next Steps
The FTA aligns with India’s broader strategy of expanding trade partnerships in the Indo-Pacific region and diversifying export markets. For New Zealand, the agreement opens access to one of the world’s fastest-growing major economies. The deal will now undergo legal review and parliamentary procedures in both countries before it is formally signed and implemented.
