India and New Zealand signed a comprehensive free trade agreement in New Delhi on April 27, 2026, aimed at expanding bilateral trade and investment. The pact was signed by India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay.
Key provisions
– India will receive duty-free access for 100 percent of its exports to New Zealand across all tariff lines. The move is expected to boost competitiveness for micro, small and medium enterprises and create jobs in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods and processed foods. New Zealand previously applied peak tariffs of up to 10 percent on items including ceramics, carpets, automobiles and auto components.
– India secured duty-free inputs for its manufacturing sector, including wooden logs, coking coal and metal waste and scrap, which should lower production costs and improve global competitiveness.
– India has liberalised tariffs on 70.03 percent of its tariff lines, covering 95 percent of bilateral trade value, while protecting 29.97 percent of lines to shield sensitive domestic sectors. Excluded items include many dairy products (milk, cream, whey, yoghurt, cheese), certain animal products (other than sheep meat), several agricultural products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal/vegetable/microbial fats and oils, arms and ammunition, gems and jewellery, and specified copper and aluminium products (cathodes, rods, billets, wire bars).
– For New Zealand-origin goods, India will immediately eliminate duties on about 30 percent of New Zealand tariff lines, including wood, wool, sheep meat and raw leather hides. A further 35.60 percent of lines will see phased elimination over 3, 5, 7 and 10 years (notably petroleum oil, malt extract, vegetable oils, selected electrical and mechanical machinery, and peptones). New Zealand exporters will also gain tariff reductions on products such as wine, pharmaceutical drugs, polymers, and certain aluminium, iron and steel articles. Only 0.06 percent of trade will be covered by tariff rate quotas, including Manuka honey, apples, kiwifruit and certain albumins such as milk albumin.
Investment and trade outlook
– The agreement includes a commitment to facilitate USD 20 billion in investment into India, backed by a rebalancing clause to address any shortfall and ensure measurable economic outcomes.
– Bilateral trade in goods and services stood at USD 2.4 billion in 2024. The agreement is expected to deepen commercial ties, support manufacturing competitiveness and expand market access for exporters on both sides.
