10-year hiatus to handshake: India-New Zealand trade pact nears finish line

India–New Zealand Trade Pact: India and New Zealand are close to inking a free trade agreement, the talks for which restarted this year in March after a hiatus of ten years.

India-NZ Goods Trade

Trade between India and New Zealand has shown steady growth over the years. In FY21, exports stood at $486.2 million and imports at $381.5 million. By FY26*, exports are expected to reach $343.5 million, while imports are projected at $356.9 million.

India-New Zealand FTA Aim

The free trade agreement aims to promote trade flows, investment linkages, and strengthen ties between the two nations.

What New Zealand Wants to Sell

New Zealand is keen to sell dairy, fruit, wool, and wine to India. Key priorities include addressing goods supply chain issues, market access, and resolving tariff and non-tariff barriers.

India’s Key Demands

India has emphasised easier movement of skilled professionals, better access for IT services sector, FTA-like investment commitments, and work opportunities similar to those given to Australia.

India’s Key Exports (Apr-Oct FY26)

• Drug formulations & biologicals: $34.0 million
• Petroleum products: $24.1 million
• Cotton fabrics, madeups: $19.9 million
• Motor vehicles: $16.9 million
• Readymade garments: $16.3 million

New Zealand’s Top Exports (Apr-Oct FY26)

• Fresh fruit: $57.4 million
• Iron & steel: $45.4 million
• Wood & its products: $37.7 million
• Coal, coke, briquettes: $30.3 million
• Raw wool: $28.9 million
• Dairy products: $5.4 million

Tariff Status

New Zealand’s average import tariff is only 2.3 per cent, while India’s average tariff is 17.8 per cent. New Delhi may have to make further reductions to reach a mutually beneficial agreement.