The two countries, which had signed the pact on April 27, aim to double bilateral goods and services trade to ₹35,000 crore by 2030. The agreement also includes a commitment by New Zealand to facilitate up to $20 billion of investment in India over 15 years.
Read more – Medical device rules may get tougher: Govt plans new powers to stop manufacture, sale of unsafe, defective and spurious products, order destruction
New Zealand currently maintains peak tariffs of up to 10% on key Indian goods, including ceramics, automobiles, and auto parts.
Sensitive Sectors Kept Out
“A Vijay (victory) for both nations… We have come up with a fair, balanced and equitable FTA,” Goyal said, referring to the pact coming into force on Vijay Dashami.
India has kept several sensitive sectors outside the tariff concessions, including dairy and agricultural products such as peas, onions, chickpeas, artificial honey, corn almonds and sugar.”Dairy we don’t open for anyone,” Goyal stated, adding that New Zealand’s kiwifruit and honey sectors could gain from greater access to the Indian market.
A calibrated market access has been structured for New Zealand’s apples, kiwifruit and Manuka honey through tariff rate quotas with minimum import price and seasonal import windows, alongside safeguards to protect domestic farmers, according to a statement by the commerce and industry ministry.
New Zealand’s parliament approved the legislation on September 16, with 93 MPs voting in favour and 29 against. The island-nation’s trade minister Todd McClay said the FTA was a “high quality” agreement that will deliver significant benefits for the citizens of the two countries.
“At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses,” McClay said via video conference at the event announcing the ratification of the treaty.
Talks concluded in 8 months
The negotiations were completed in nine months during which McClay visited India as many times. He added that at a time of global economic uncertainties, the pact would give confidence to business communities of the two countries.
New Zealand will receive tariff-free access on 57% of its exports to India initially, rising to 82% as the agreement is fully phased in, while tariffs will be eliminated or reduced on 95% of New Zealand’s exports by value.
Indian exports of engineering goods, automobiles, auto components, aerospace and defence are expected to gain greater access.
Trade between the two countries amounted to about $2.4 billion in FY25.
India’s exports include pharmaceuticals, textiles, engineering goods and refined petroleum products. New Zealand’s exports to India include wood and forestry products, wool, metals and agricultural products.
The agreement also provides for greater access for Indian professionals and students, including a dedicated quota of 5,000 Temporary Employment Entry visas and expanded post-study work pathways.
“This strategic partnership and the road map to 2030 reflects our shared ambition to deepen this cooperation and includes the aspirational goal of doubling bilateral trade in goods and services to almost ₹35,000 crore in the next four or five years,” Goyal said.