India, New Zealand sign historic FTA, PM Christopher Luxon calls it ‘once-in-a-generation’ agreement
New Delhi, April 27 (UNI) India and New Zealand have signed a landmark Free Trade Agreement (FTA), granting market access across 70.03% of tariff lines while keeping 29.97% under exclusion.
Describing the pact as transformative, New Zealand Prime Minister Christopher Luxon said the agreement marks a breakthrough after years of stalled efforts.
Luxon said, "We agreed then, that we'd launch negotiations on a free trade agreement. For decades, many people said it couldn't be done. But tonight, that deal gets signed."
Taking it to social media platform X, "This is a once-in-a-generation agreement that gives NZ exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world. It means more jobs on farms and orchards, it means more money coming into local communities, and it means more opportunities for your family to get ahead."
The FTA was formalised in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart, Todd McClay.
Piyush Goyal on the development said, "The fact that we are making businesses easier to set up, easier to work in India working towards reducing the compliance burden, ensuring simplicity in operations, ensuring a business climate that is trusting, that encourages investment, and also making sure that as a nation, we provide an environment that is business friendly, that is very inviting, and that it help you both grow and enjoy good profits in India."
Through the FTA, both the countries collaborate with farmers to boost productivity and integrate them in the global value chains. The FTA boosts MSMEs and Jobs through Zero-duty access for labour-intensive sectors including textiles, apparel, leather, footwear, gems & jewellery, engineering goods and processed foods.
The 30% of tariff lines will have immediate duty elimination, covering wood, wool, sheep meat, leather-raw hides etc. 35.60% of tariffs are subject to phased elimination over 3, 5, 7, and 10 years, including petroleum oil, malt extract, vegetable oils, and selected electrical and mechanical machinery, peptones etc, the statement read.
Further, 4.37% of products face tariff reductions, such as wine, pharmaceutical drugs, polymers, aluminium, iron and steel articles etc. 0.06% fall under tariff rate quotas, including honey, apples, kiwi fruit, and albumins including milk albumin.
India and New Zealand announced negotiations for a Free Trade Agreement (FTA) In March 2025. The trade negotiations by both the countries was concluded on December 22 last year, with the goal of doubling bilateral trade to $5 billion over the next five years.
UNI VK AAB
Key Insights
- This topic is currently trending
- Experts are closely monitoring developments
- It may impact future decisions
