India, New Zealand Announce Conclusion of FTA Negotiations

India and New Zealand on Monday announced the conclusion of free trade agreement negotiations, a move aimed at boosting bilateral trade in goods and investments.

The talks started in May this year.

New Zealand Prime Minister Christopher Luxon said on Monday that negotiations for a free trade agreement with India have been concluded. The free trade agreement (FTA) reduces or removes tariffs on 95% of our exports to India.

It's forecast that New Zealand exports to India could increase from $1.1 billion to $1.3 billion per year over the coming two decades, Luxon said in a social media post.

"I've just spoken with India's Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement.

"The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," Luxon said.

In FY25, the bilateral trade was about $1.3 billion (India's exports were $711.1 million and imports were $587.1 million).

New Zealand's average import tariff is just 2.3%, compared with India's 17.8%, and 58.3% of New Zealand's tariff lines are already duty-free.

India's export basket to New Zealand is broad-based but concentrated in fuels, textiles, and pharmaceuticals.

Aviation turbine fuel (ATF) led shipments at $110.8 million, followed by clothing, fabrics, and home textiles at $95.8 million.

Medicines accounted for $57.5 million, while machinery, including turbojets, contributed $51.8 million.

Petroleum products were another major component, with diesel exports totalling $47.8 million and petrol exports totalling $22.7 million.

Other notable exports included automobiles and parts ($19.3 million), paper and paperboard ($18.3 million), electronics ($16.5 million), iron and steel ($14.1 million), shrimps ($13.7 million), basmati rice ($11.9 million) and gold jewellery ($9.9 million).

New Zealand's exports to India, by contrast, are dominated by raw materials and agricultural inputs.

Wood and wood articles ($78.4 million) and wood pulp ($39.8 million) underline linkages in paper, packaging and construction.

Steel scrap exports reached $71.2 million, while aluminium scrap totaled $42.9 million, reflecting India's dependence on recycled metal inputs.

In energy and heavy industry, coking coal exports totalled $48.8 million, alongside high-value turbojets valued at $66.2 million.

Agricultural and animal-based products also play a significant role, led by shorn wool ($47.3 million), milk albumin ($32.1 million), apples ($32.8 million) and kiwi fruit ($17 million).

Services trade is a more significant pillar of the relationship.

In FY24, India's services exports to New Zealand stood at $214.1 million, while New Zealand's services exports to India totaled $456.5 million.

India's strengths lie in IT and software services, telecommunications support, healthcare and financial services.

New Zealand's services exports are led by education — driven by Indian students — followed by tourism, fintech solutions, and specialised aviation training, he added.