India and New Zealand sign Free Trade Agreement, seek to boost exports

Central News Agency

(Central News Agency, New Delhi, April 27, Comprehensive Foreign Report) India and New Zealand today signed a free trade agreement, as the escalating Middle East war intensifies global economic uncertainty, with both sides keen to boost exports.

AFP reported that under the free trade agreement, a range of Indian goods, including engineering products, machinery, and textiles, will gain broader market access, while also protecting its sensitive dairy industry. India and New Zealand completed negotiations in December 2025.

Indian Commerce and Industry Minister Piyush Goyal stated after jointly signing the agreement with New Zealand Trade Minister Todd McClay: "This forward-looking agreement will also facilitate a US$20 billion investment into India."

New Delhi, in turn, pledged to lower tariff barriers in areas such as forestry, lamb, and wool, and to provide quota access for fruits like apples.

Currently, trade between New Delhi and Wellington is relatively small. Bilateral goods trade between India and New Zealand has grown from US$873 million in 2023-24 to nearly US$1.3 billion in 2024-25.

New Zealand Prime Minister Christopher Luxon stated today that this "generational agreement" will give New Zealand exporters "unprecedented opportunities" to access the world's most populous country.

Luxon posted on social media: "This means more jobs on farms and in orchards, more money flowing into local communities, and more opportunities for family members to get ahead."

Indian Prime Minister Narendra Modi stated that this marks a "milestone moment for the India-New Zealand partnership" and will "strengthen cooperation between the two sides in agriculture, manufacturing, innovation, and technology."

However, some parts of the agreement have drawn criticism in Wellington. Controversies include the relaxation of visa access for Indian technicians. New Zealand officials told AFP that the agreement could lead to more than 20,000 Indian immigrants entering annually.

The right-wing New Zealand First party also expressed concerns about the investment obligation stipulated in the agreement, which requires New Zealand to invest NZ$34 billion (approximately US$20 billion) in India within 15 years. (Compiled by: Liu Shu-Qin) 1150427

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