India, New Zealand to sign $20 billion FTA on Monday

New Zealand Prime Minister Christopher Luxon on Friday announced that India and New Zealand are set to sign the historic Free Trade Agreement (FTA) on Monday.

The FTA will provide tariff-free access for Indian goods in the New Zealand market and attract up to $20 billion in investment over the next 15 years. It will also eliminate duty on 100% of Indian Exports.

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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.

India has offered market access in 70.03% of the tariff lines while keeping 29.97 % tariff lines in exclusion. Immediate Elimination (EIF) on 30%, Rest is phased.

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 were concluded on December 22 last year, with the goal of doubling bilateral trade to $5 billion over the next five years.

New Zealand is India’s second-largest trading partner in Oceania. At $49,380, New Zealand is among the higher-income economies in Oceania.

New Zealand maintained tariffs around 10% in around 450 lines of key Indian exports.