The pact is expected to make it easier for New Zealand companies to sell goods and services in India, home to the world’s largest population and an economy projected to reach NZ$12 trillion ($7 trillion) by 2030.
Under the agreement, tariffs will be cut or reduced on about 95% of New Zealand’s exports to India. More than half of these products will become duty-free from the first day the pact comes into effect, the New Zealand Prime Minister Christopher Luxon said.
Confirming the deal, Luxon said he had spoken with Indian Prime Minister Narendra Modi following the conclusion of the agreement. “The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades,” he said in a post on X.
Luxon said the agreement would support jobs and incomes in New Zealand. “Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders,” he said, adding that the deal builds on the strong relationship between the two countries.
“The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” Luxon said.