$20 Billion Investment, Tariff Cuts Proposed in India–New Zealand FTA Deal to Be Signed on Monday

On Monday, April 26, 2026, India and New Zealand will finalize a Free Trade Agreement (FTA), marking a significant step in bilateral relations. This deal is projected to facilitate a $20 billion investment from New Zealand into India over the next 15 years, with the intent to double bilateral trade to $5 billion within five years.

The agreement, concluded after negotiations that began in March 2025, will grant tariff-free access to Indian goods in the New Zealand market, eliminating duties on 100% of Indian exports. Currently, New Zealand imposes tariffs around 10% on approximately 450 lines of key Indian exports, including textiles, leather, and automobiles. The agreement is expected to remove these tariffs, enhancing India's export capabilities.

Key features of the FTA include immediate tariff eliminations on 30% of products, such as leather and sheep meat, while other tariffs will be phased out over the next several years. Additionally, New Zealand has consented to collaborate under focused Action Plans for improving the productivity of sectors like kiwifruit and honey.

Notably, the FTA excludes certain sectors like dairy, which has been a contentious issue, reflecting the balance both nations sought to maintain in negotiations. Although New Zealand's dairy industry is a major focus, the exclusion of dairy products from this agreement aims to provide room for negotiation in future discussions.

New Zealand's Prime Minister Christopher Luxon highlighted the broader implications of the FTA, stating it would open new opportunities for businesses in both countries. With this agreement, both nations hope to boost their economies and foster sustainable trade relations in the coming years.