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India And new zealand reached a free trade agreement to deepen economic ties and boost growth at a time of growing global trade uncertainties, officials said Monday.
comes as a trick New Delhi Intensifies efforts to diversify export destinations as part of a broader strategy to mitigate the impact of US import tariffs.
India and New Zealand are expected to formally sign the agreement in the first quarter of next year after legal scrutiny of the negotiated text, India’s chief negotiator Petal Dhillon told reporters.
The India-New Zealand trade agreement was negotiated over nine months with the aim of reducing tariffs, reducing regulatory barriers and expanding cooperation in goods, services and investments.
It underlines India’s effort to strengthen trade partnerships beyond traditional markets as global commerce faces strains from unpredictable tariffs and geopolitical tensions, slowing growth and rising protectionism.
Officials said that as part of the deal, India will get zero-duty export access to New Zealand for all its goods, while Wellington will get duty concessions and market access to about 70% of New Delhi’s tariff lines, which will cover 95% of its exports in a phased manner.
India’s major sectors that will benefit from duty-free exports include textiles, apparel, engineering goods, leather and footwear and marine products, while New Zealand’s major beneficiaries will be in sectors including horticulture, timber exports and sheep wool, among others.
India’s Trade Ministry said that under the agreement, New Zealand has committed to invest $20 billion in India over a period of 15 years.
New Delhi has kept dairy imports such as milk, cream, whey, curd and cheese as well as animal and vegetable products including goat meat, onions and almonds out of the deal, citing “domestic sensitivities”.
Bilateral trade between India and New Zealand is modest compared with New Delhi’s major partners, but officials said the deal has strong growth potential. Trade Secretary Rajesh Aggarwal said two-way trade, which includes merchandise and services, stood at $2.4 billion in 2024, which both sides expect to double in about five years.
Prime Minister of New Zealand Christopher Luxon X said in a post on Monday that he spoke to his Indian counterpart Narendra Modi At the conclusion of the talks. He said that as a result of the agreement, New Zealand’s exports to India are expected to increase by $1.1 billion to $1.3 billion annually over the coming two decades.
“Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard-working New Zealanders,” he said.
A statement from Modi’s office said the trade agreement will serve as a catalyst for greater trade, investment, innovation and shared opportunities between the two countries.