India, New Zealand announce landmark trade deal, New Delhi to slash tariffs on 95% of Kiwi goods

“India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” New Zealand PM said.

India and New Zealand have concluded negotiations on a comprehensive free trade agreement (FTA), marking one of India’s fastest trade negotiations with a developed economy, India’s Ministry of Commerce and Industry said on Monday.

The conclusion of the negotiations was announced following a telephone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, according to an official statement.

An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment!

My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement.… — Narendra Modi (@narendramodi) December 22, 2025

The negotiations for the agreement were launched in March 2025 and were completed after five rounds of talks conducted through a mix of in-person and virtual meetings.

According to the commerce ministry, the agreement provides zero-duty market access for all Indian exports to New Zealand, while India has agreed to tariff liberalisation covering about 95 percent of bilateral trade.

The FTA covers trade in goods and services, investment, customs procedures, regulatory cooperation and the movement of professionals.

In services, New Zealand has offered market access commitments across sectors such as information technology, professional services, tourism, financial services and education. The agreement also includes mobility provisions for Indian students and professionals, including post-study work opportunities and temporary employment visas.

Under the guidance and leadership of PM @NarendraModi ji and NZ PM @ChrisLuxonMP, and with the close & collaborative engagement of my friend and counterpart Minister Todd McClay, India and New Zealand have successfully concluded a landmark Free Trade Agreement in a record nine… https://t.co/ZlAA8Wfpddpic.twitter.com/ace3nzINaD — Piyush Goyal (@PiyushGoyal) December 22, 2025

New Zealand has also indicated that it will facilitate investments of $20 billion in India over the next 15 years, according to the official statement.

Commerce Minister Piyush Goyal said the agreement focuses on expanding opportunities across multiple segments. “This Free Trade Agreement is about building trade around people and launching opportunities for farmers, entrepreneurs, students and professionals,” he said.

Commerce Secretary Rajesh Agrawal described the agreement as a new-generation trade pact covering tariffs, agricultural productivity, investment and talent mobility.

The agreement also includes cooperation frameworks in agriculture, including productivity partnerships and the proposed setting up of centres of excellence for products such as apples, kiwifruit and honey. Certain sensitive sectors have been excluded from tariff commitments, the government said.

The two leaders also discussed broader bilateral cooperation, including engagement in defence, education, tourism and people-to-people exchanges, and agreed to remain in touch on the implementation of the agreement.