New Zealand and India have reached a free trade agreement, both governments announced on Monday, a move that will make it easier for New Zealand exporters to access the world’s most populous nation and an economy projected to be worth NZ$12 trillion ($7 trillion) by 2030.
Under the agreement, tariffs on 95% of New Zealand’s exports to India will be reduced or eliminated, with more than half of the products becoming duty-free from day one, improving access to India’s rapidly growing middle class, according to the New Zealand government.
In addition, New Zealand will offer around 1,667 temporary work visas annually for sectors facing skills shortages, including doctors, nurses, teachers, technology professionals, and engineers, along with 1,000 places per year under its working holiday visa program, matching provisions in Australia’s free trade pact with India.
“The gains are wide-ranging and significant,” New Zealand Prime Minister Christopher Luxon said. “India is the world’s most populous country and the fastest-growing large economy, creating opportunities for jobs for Kiwis, exports, and economic growth.”
The two countries aim to formally sign the agreement in the first half of 2026. Trade Minister Todd McClay said the deal positions New Zealand on equal or better terms compared with other nations trading with India and “will deliver thousands of jobs and billions in additional exports.”
The Indian government confirmed the pact but did not provide further details. India’s trade minister was scheduled to brief reporters later on Monday.
The agreement fulfills a 2022 election promise by New Zealand’s governing National Party to finalize a free trade deal with India during its first term. However, parliamentary approval is not guaranteed, as coalition partner New Zealand First, which holds eight of the 123 seats, has signaled opposition. Party leader Winston Peters said the deal “gives too much away, especially on immigration, and does not secure enough for New Zealanders, including on dairy.”
Bilateral trade between the two countries totaled NZ$3.14 billion in 2024, primarily comprising pharmaceuticals from India and forestry and agricultural products from New Zealand, including wool, logs, and apples.
