India, New Zealand Seal Trade Deal To Cut Tariffs On Exports — Details Inside

New Zealand Prime Minister Christopher Luxon said on Monday that the country and and India have concluded a free trade agreement that will cut or eliminate tariffs on most New Zealand exports.

The agreement is forecast to raise New Zealand’s exports to India by between $1.1 billion and $1.3 billion a year over the next two decades. It will remove or reduce tariffs on about 95% of goods exported from New Zealand, Luxon said in a post on X.

"I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement. Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders," Luxon said, adding, " India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers."

Luxon further noted that the Government will focus on reforms and new trade opportunities to help New Zealand businesses.

"The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors," Modi's office said in a separate statement on Monday.

"With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years," the statement added.

India will ease tariffs on 70% of its tariff lines, representing 95% of bilateral trade. It will keep around 30% of tariff lines outside the deal, including dairy, animal and some agricultural products. That approach mirrors settings in India’s earlier trade agreements with Australia.

Services are central to the deal. India secured access in 118 service categories, including information technology. New Zealand will grant 5,000 temporary work visas for Indian nationals for periods of up to three years in areas such as IT, engineering, healthcare, education, yoga, culinary arts and music. A student mobility plan and post-study work visa are part of the agreement and allow Indian students to work 20 hours a week, without a quota.

Sensitive agricultural items, including apples, kiwifruit and Manuka honey, will be managed through tariff-rate quotas, minimum import prices and seasonal controls. The aim is to protect Indian farmers from sharp import surges.

Bilateral trade stands at about $2.4 billion and is expected to double within five years. The agreement also covers intellectual property, investment settings, customs procedures and a plan for $20 billion in investment from New Zealand into India over 15 years.

The text of the agreement will now go through legal review and ratification. Formal signing is expected within three months, with implementation planned within eight months.