India and New Zealand on Monday announced the conclusion of negotiations on a Free Trade Agreement (FTA) aimed at doubling bilateral trade within the next five years. The agreement, finalised after nine months of talks, seeks to significantly boost economic ties between the two countries by easing market access and promoting long-term investment. Two-way trade between India and New Zealand stood at around $1.81 billion in 2024, a modest figure compared to India’s overall goods trade, which crossed $1 trillion in the 2024–25 financial year.

Under the proposed deal, tariffs will be eliminated or reduced on 95% of New Zealand’s exports to India, with more than half of these products becoming duty-free from the first day of implementation. In return, all Indian goods will receive duty-free access to the New Zealand market. However, sensitive sectors such as dairy and several agricultural products have been excluded from the agreement to safeguard Indian farmers and domestic industries. New Zealand has also committed to investing nearly $20 billion in India over the next 15 years, signalling a strong push to deepen economic engagement beyond trade.

New Zealand Prime Minister Christopher Luxon described the agreement as wide-ranging and economically significant, highlighting India’s status as the world’s most populous nation and the fastest-growing major economy. Indian Prime Minister Narendra Modi said the deal reflected strong political will and shared ambition to strengthen ties. The agreement is expected to be signed in the first half of 2026, subject to parliamentary approval in New Zealand, where some resistance has emerged from coalition partner New Zealand First, which has raised concerns over immigration and dairy market access. Despite this, both governments view the pact as a major milestone in expanding strategic and economic cooperation.