India, New Zealand Conclude Free Trade Deal; Tariffs Cut on 95% of New Zealand Exports

India and New Zealand on Monday announced the conclusion of a bilateral free trade agreement (FTA), marking a major step forward in economic ties between the two countries. Both governments confirmed that negotiations have been wrapped up, although the pact is yet to be formally signed.

Under the agreement, tariffs will be reduced on 95% of New Zealand’s exports to India, with more than half of the products becoming duty-free immediately after signing the pact, the New Zealand government said. The deal is expected to significantly improve access to India’s expanding middle-class market.

“The gains are wide-ranging and significant,” New Zealand Prime Minister Christopher Luxon said. “India is the world’s most populous country and the fastest-growing major economy, and that creates opportunities for jobs for Kiwis, exports, and growth.”

As part of the agreement, New Zealand will also offer around 1,667 temporary work visas for a year to Indian professionals in sectors facing skill shortages, including healthcare, education, technology, and engineering, according to Wellington.

New Delhi and Wellington are expected to formally sign the FTA in the first half of 2026, the New Zealand government said. New Zealand Trade Minister Todd McClay said the agreement would put the country on an equal footing with other nations that have trade arrangements with India and would “deliver thousands of jobs and billions in additional exports.”

The Indian government confirmed the conclusion of the pact but did not release detailed tariff schedules or sector-specific commitments. Union Minister of Commerce and Industry Piyush Goyal is scheduled to brief the media later in the day.

Bilateral trade between India and New Zealand stood at NZ$3.14 billion in 2024, led by pharmaceutical exports from India and agricultural and forest products from New Zealand.

In a statement, India’s Ministry of External Affairs said the agreement would “significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth across various sectors.”

The conclusion of the FTA follows months of negotiations and comes as India continues to expand its network of trade agreements to diversify export markets and strengthen economic partnerships.