In a statement shared on social media platform X, Goyal termed the agreement “India’s first women-led FTA” and emphasized that it was concluded within nine months, reflecting mutual trust, shared ambition, and a joint commitment to prosperity. He stated that the agreement grants 100 percent duty-free access for Indian exports to New Zealand, opening opportunities for micro, small and medium enterprises, farmers, women, youth, professionals, and employment-generating sectors, while maintaining safeguards for India’s sensitive industries through a calibrated framework.
The minister highlighted that the agreement is expected to facilitate 20 billion dollars in investment into India, strengthening cooperation across trade, services, innovation, mobility, agricultural productivity, and education. It also creates pathways for skilled professionals and students, enhancing people-to-people and economic engagement.
Covering all tariff lines across product categories, the agreement is expected to boost competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods. Previously, New Zealand imposed tariffs of up to 10 percent on key Indian exports including ceramics, carpets, automobiles, and auto components. With immediate zero-duty access, Indian goods are expected to achieve parity with other trade partners in the New Zealand market.
India has also secured duty-free access to critical inputs for manufacturing, including wooden logs, coking coal, and waste and scrap metals, which is expected to lower production costs and enhance global competitiveness of domestic industries.
Under the agreement, India has offered tariff liberalisation on 70.03 percent of tariff lines, covering 95 percent of bilateral trade value, while excluding 29.97 percent of tariff lines to protect sensitive sectors. These exclusions include dairy products such as milk, cream, whey, yoghurt, and cheese; animal products excluding sheep meat; agricultural goods including onions, chickpeas, peas, corn, and almonds; sugar; artificial honey; fats and oils; arms and ammunition; and selected metals and gems.
For New Zealand exports, India will eliminate duties on 30 percent of tariff lines, covering products such as wood, wool, sheep meat, and raw hides. Additionally, 35.60 percent of tariff lines will see phased duty reductions over periods of three, five, seven, and ten years, including petroleum oils, malt extracts, vegetable oils, machinery, and chemical products.
New Zealand goods that will benefit from tariff reductions include wine, pharmaceutical products, polymers, aluminium, iron and steel articles, and items under tariff rate quotas such as Manuka honey, apples, kiwifruit, and albumins including milk albumin.
A rebalancing clause has been incorporated into the agreement to address any shortfall in the projected 20 billion dollar investment commitment, ensuring accountability and tangible economic outcomes.
Industry experts have responded positively to the development. Gautam Khattar, Principal at Price Waterhouse & Co LLP, described the agreement as a significant milestone featuring a balanced tariff concession framework.
The India–New Zealand Free Trade Agreement marks a strategic advancement in bilateral relations, combining market access, investment commitments, and sectoral safeguards. It is expected to enhance economic integration, strengthen supply chains, and generate employment while maintaining protections for critical domestic industries.
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