India-New Zealand finalise free trade deal, slashing tariffs on 95% of Kiwi exports

New Zealand and India have finalised a free trade agreement, a move Wellington says will significantly widen access for its exporters to the world’s most populous country and one of the fastest-growing major economies globally.

New Zealand confirmed the agreement on Monday, saying the deal significantly improves access to India, the world’s most populous country and an economy projected to reach NZ$12 trillion ($7 trillion) by 2030. Under the pact, tariffs will be cut or eliminated on 95 per cent of New Zealand’s existing exports to India, with more than half of these products becoming duty-free from the first day of implementation.

The agreement was formally announced following a phone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, with both leaders describing the deal as historic, ambitious and mutually beneficial.

In a statement, New Zealand’s trade minister said the pact would make 95 per cent of the country’s current exports to India tariff-free or subject to sharply reduced duties. The deal also removes levies on Indian exports to New Zealand and eases mobility rules for Indian students and workers, providing greater access to education and employment pathways.

“I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement,” Luxon said.

“The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades.”

Luxon said the agreement would translate into tangible domestic benefits.

“Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders,” he said, adding that the deal opens access to a market of 1.4 billion consumers in one of the world’s fastest-growing economies.

For India, the pact underscores a broader push to move away from a protectionist reputation by lowering tariff and non-tariff barriers that global investors have long flagged as obstacles. The urgency has increased after US President Donald Trump imposed 50 per cent tariffs on Indian goods — the highest in Asia — placing pressure on labour-intensive export sectors.

The India–New Zealand agreement is the third free trade pact New Delhi has finalised this year, even as talks with Washington and Brussels continue to face delays.