India, New Zealand Conclude FTA Negotiations

India and New Zealand announced on December 22, 2025, the conclusion of negotiations for a comprehensive free trade agreement, marking a significant step to enhance bilateral economic ties. The pact, reached after nine months of talks launched in March, is expected to be formally signed within the next three months and operationalized by late 2026, pending parliamentary approvals in both countries.

The agreement aims to double bilateral trade in goods and services to $5 billion within five years, up from $2.4 billion in 2024, where India held a surplus. Under its terms, New Zealand will provide zero-duty market access for all Indian exports, benefiting sectors such as textiles, apparel, engineering goods, leather, footwear, marine products, automobiles, auto components, machinery, electronics, and pharmaceuticals. In return, India will offer duty concessions on 54.11 percent of New Zealand's exports starting from day one, including sheep meat, wool, and coal. Tariff reductions will phase in for about 70 tariff lines, covering roughly 95 percent of bilateral trade, with mechanisms like tariff-rate quotas, minimum import prices, and safeguards to manage sensitive agricultural flows.