Wellington (TDI): India and New Zealand have agreed on a free trade pact, officials from both countries said on Monday, a move expected to significantly expand economic ties and improve market access for exporters.
Under the agreement, tariffs will be eliminated or reduced on 95 percent of New Zealand’s exports to India, with more than half of eligible products becoming duty-free immediately once the deal takes effect. New Zealand’s government said the pact would help its exporters tap into India’s vast and fast-growing consumer market, particularly the expanding middle class.
As part of the deal, New Zealand will provide 1,667 temporary work visas annually for skilled professionals in areas facing shortages, including healthcare, education, engineering and technology. An additional 1,000 places per year will be offered under the working holiday visa scheme, aligning New Zealand’s arrangements with similar provisions in Australia’s trade agreement with India.
New Zealand Prime Minister Christopher Luxon described the agreement as a major economic opportunity, noting that India is the world’s most populous country and one of its fastest-growing major economies.
“The benefits are substantial and wide-ranging,” Luxon said, adding that stronger trade ties with India would support job creation, export growth and long-term economic expansion.
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The two countries expect to formally sign the agreement in the first half of 2026, according to New Zealand officials. Trade Minister Todd McClay said the deal would place New Zealand on equal or better terms compared to other countries trading with India and could generate thousands of jobs and billions of dollars in additional exports.
India’s government also confirmed the agreement, though it did not release further details. India’s trade minister was scheduled to brief the media later on Monday.
The agreement fulfils a 2022 election pledge by New Zealand’s governing National Party to finalise a free trade deal with India during its first term in office. However, its passage through parliament is not guaranteed. Coalition partner New Zealand First has signalled opposition, with party leader Winston Peters arguing that the deal makes excessive concessions, particularly on immigration, while offering insufficient benefits for sectors such as dairy.
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Two-way trade between India and New Zealand reached NZ$3.14 billion in 2024, driven largely by pharmaceutical exports from India and forestry and agricultural products from New Zealand, including wool, logs and apples.
