India-New Zealand trade pact kicks in
The agreement provides duty-free access to a range of Indian goods, including products from labour-intensive sectors such as textiles and leather.
The India-New Zealand Free Trade Agreement (FTA) officially began on Tuesday, granting duty-free access to Indian goods, including those from textiles, leather, engineering, and auto components. This pact is the seventh to come into effect in the last five years, following negotiations that were paused in 2015 and resumed in 2025.
India's FTA count now stands at 17. The pact encompasses sectors like textiles, leather, gems and jewelry, agriculture, pharmaceuticals, and other manufacturing industries. New Zealand has pledged to invest USD 20 billion in India over the next 15 years. The agreement's provisions on duty-free access, bilateral cumulation, customs facilitation, and investment-promotion mechanisms could lead to deeper value-chain integration and better investment conditions.
Beyond trade, the pact strengthens India's strategic position in the Indo-Pacific and expands its network of FTAs with developed economies. New Zealand's commitment to a USD 20 billion investment over 15 years highlights the pact's significance. With 100% of Indian exports gaining duty-free access from day one, the agreement provides Indian exporters a competitive edge.
The FTA extends beyond goods to cover services, investment, skills, and mobility, offering fresh opportunities for Indian professionals and businesses. Currently, bilateral trade between India and New Zealand has declined by about 11% to USD 1.15 billion in 2025-26, with India exporting USD 566.51 million and importing USD 589.1 million, resulting in a modest trade deficit of USD 22.59 million.
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