PTI
New Delhi, Updated At : 04:26 PM Apr 27, 2026 IST
India and New Zealand on Monday signed a free trade agreement designed to expand bilateral trade and investment. The pact was inked in New Delhi by Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay.
Under the deal, 100 per cent of India’s exports to New Zealand will receive duty-free access across all tariff lines, a move expected to strengthen 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. Previously, New Zealand imposed peak tariffs of up to 10 per cent on key Indian items including ceramics, carpets, automobiles and auto components; with zero-duty access, Indian products will be more competitive and enjoy a level playing field.
India also secured duty-free inputs for its manufacturing sector — including wooden logs, coking coal and metal waste and scraps — which should help reduce production costs and boost global competitiveness.
On its side, India has liberalised tariffs on 70.03 per cent of tariff lines representing 95 per cent of bilateral trade value, while protecting 29.97 per cent of lines to safeguard sensitive domestic sectors. Excluded products include many dairy items (milk, cream, whey, yoghurt, cheese), certain animal products (other than sheep meat), agricultural items (onions, chana, peas, corn, almonds), sugar, artificial honey, animal/vegetable/microbial fats and oils, arms and ammunition, gems and jewellery, and certain copper and aluminium products (cathodes, rods, billets, wire bars), among others.
For New Zealand-origin goods, India will eliminate duties on about 30 per cent of New Zealand’s tariff lines, covering items such as wood, wool, sheep meat and raw leather hides. A further 35.60 per cent of tariff lines will see phased elimination over periods of 3, 5, 7 and 10 years, including products like petroleum oil, malt extract, vegetable oils, selected electrical and mechanical machinery, and peptones. New Zealand exporters will gain tariff reductions on goods including wine, pharmaceutical drugs, polymers, and some aluminium, iron and steel articles; only 0.06 per cent of trade falls under tariff rate quotas (including Manuka honey, apples, kiwifruit and certain albumins such as milk albumin).
The agreement also includes a commitment to facilitate USD 20 billion in investment into India, with a rebalancing clause to address any shortfall in investment delivery and ensure tangible economic outcomes.
Bilateral trade in goods and services totaled USD 2.4 billion in 2024.
