India and New Zealand announce trade pact making majority of goods trade duty free
India which has ambitions to become an export powerhouse has been looking to diversify its exports. This is the third trade pact India has signed this year.
TL;DR
- India and New Zealand have signed a free trade agreement eliminating duties on the majority of goods traded between them.
- The pact will make 95% of New Zealand's exports duty-free in India, with 57% duty-free from day one.
- New Zealand will invest $20 billion in India over 15 years and allow mobility of Indian professionals, skilled labor, and students.
- India will gain zero duty market access on all its exports to New Zealand, including textiles, gems, jewelry, and automobiles.
- India will eliminate tariffs on sheep meat, wool, coal, and forestry exports, but excludes dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils, and rubber.
- Bilateral merchandise trade between the countries was $1.3 billion in 2024-25, with total trade in goods and services at $2.4 billion in 2024.
- This is India's third free trade agreement this year, following deals with the UK and Oman.
- The agreement is seen as a move to diversify India's exports and mitigate the impact of U.S. tariffs, which have affected India's export figures.