India and New Zealand sign 'historic' free trade deal
India and New Zealand have signed a Free Trade Agreement (FTA), hailed as a historic step to deepen trade, investment, and people-to-people ties. New Zealand will remove tariffs on all Indian goods, while India will reduce or remove tariffs on 95% of its current imports from New Zealand. The deal, announced in March 2025 and concluded in December 2025, is one of India's fastest negotiated FTAs. It also includes provisions for mobility of professionals and students, and a commitment from New Zealand to facilitate $20 billion in investments into India.
Key Points
- India and New Zealand have signed a Free Trade Agreement (FTA) to boost trade, investment, and people-to-people ties.
- New Zealand will eliminate tariffs on all goods imported from India, while India will reduce or remove tariffs on 95% of current imports from New Zealand.
- Key products excluded by India from tariff reductions include dairy, animal products (other than sheep meat), agricultural products, sugar, artificial honey, copper, and aluminium.
- The FTA, one of India's fastest negotiated, is expected to be ratified by New Zealand's Parliament and come into force this year.
- The agreement includes provisions for professional and student mobility, and a $20 billion investment commitment from New Zealand into India over 15 years.
Exam Facts
- The FTA was signed by India's Commerce Minister Piyush Goyal and New Zealand's Minister for Trade and Investment, Todd McClay.
- New Zealand will remove tariffs on all goods imported from India.
- India will remove or reduce tariffs on 95% of current imports from New Zealand.
- Discussions for the FTA were announced in March 2025 and concluded in December 2025.
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