NEW DELHI (AP) 鈥� India and New Zealand on Monday signed a free trade agreement to deepen economic ties and expand market access, as both countries navigate mounting global trade disruptions.
The deal comes as New Delhi moves to diversify export markets to offset the impact of steep tariffs imposed by the United States and instability in shipping and energy routes due to the For New Zealand, the agreement is part of a broader push to reduce reliance on China, its largest trading partner.
The agreement was signed in New Delhi by India鈥檚 Commerce and Industry Minister Piyush Goyal and visiting New Zealand Trade and Investment Minister Todd McClay.
Negotiated over nine months and , the deal will cut or eliminate tariffs on 95% of New Zealand鈥檚 exports to India, while making all Indian exports to New Zealand duty-free. Wellington has also committed to invest $20 billion in India over the next 15 years.
McClay said the deal marked a 鈥渙nce-in-a-generation鈥� opportunity to deepen economic ties at a time of rising global trade tensions and uncertainty. India is New Zealand鈥檚 12th-largest export market, with bilateral trade valued at $2.15 billion in the year through June 2025, according to official data.
鈥淭his agreement is also being concluded at a time of heightened global and regional uncertainty. In this context, strong, reliable partnerships matter more than ever before,鈥� McClay said.
Goyal called the deal a 鈥渄efining milestone鈥� and said India and New Zealand had 鈥渃hosen each other鈥� at a time 鈥漺hen the world economy is being recast.鈥� He said the agreement offers market access across sectors and creates frameworks for investment and regulatory cooperation.
Indian sectors expected to see expanded market access include textiles and apparel, engineering goods, leather and footwear, and marine products. New Zealand is likely to register increased exports in horticulture, timber, coal, wool and meat.
India has excluded dairy and certain agricultural products from the deal to protect its farming sector.
Indian exporters have been under pressure from since August last year, particularly in labor-intensive sectors such as textiles, auto components and metals, even as New Delhi continues negotiations with Washington on a
New Zealand鈥檚 trade deals are usually bipartisan. The agreement now requires ratification by parliament and is expected to pass after the opposition New Zealand Labour Party backed it, despite resistance from coalition partner and populist minor party New Zealand First.
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Graham-McLay reported from Wellington, New Zealand.
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