New Zealand's 57% exports to India go tariff-free under FTA
What's the story
Ahead of Prime Minister Narendra Modi's visit, New Zealand Prime Minister Christopher Luxon has announced that 57% of his country's exports to India will be tariff-free. The announcement comes as part of the India-New Zealand Free Trade Agreement (FTA) signed in April this year. The FTA aims to strengthen economic ties and boost bilateral trade between the two nations.
Trade expansion
FTA expected to double bilateral trade in 5 years
The FTA, which was finalized after years of high-level discussions, is expected to double bilateral trade to $5 billion in five years. It provides 100% duty-free access for Indian exports across 8,284 tariff lines. In FY2026, bilateral merchandise trade stood at $1.16 billion with an 8% CAGR over FY2022-FY2026 despite moderating from the FY2025 peak.
Trade balance
India-New Zealand merchandise trade in FY2026
India's exports to New Zealand fell to $566 million in FY2026, while imports increased to $589 million, resulting in a merchandise trade deficit of $23 million. However, the FTA is expected to create new opportunities across sectors such as manufacturing, agriculture, MSMEs, services, investment, and skilled workforce mobility. This will further strengthen trade between India and New Zealand.
Diplomatic relations
PM Modi's visit to New Zealand
PM Modi will visit New Zealand from July 10-11, at the invitation of his Kiwi counterpart. This will be the first state visit by an Indian Prime Minister in nearly 40 years. During his stay in Auckland, PM Modi will hold high-level bilateral talks with PM Luxon to review all aspects of India-New Zealand ties, especially trade, commerce, and defense cooperation.