Gains for New Zealand
India has offered market access on about 70% of tariff lines, with 54.11% of New Zealand exports gaining duty-free access from day one. This includes products such as sheep meat, wool, coal, and forestry goods, which are expected to become more affordable for Indian consumers.
Tariff concessions have also been extended to agricultural products such as apples, kiwifruit, manuka honey, and milk albumin, though these will be subject to quotas and minimum import prices to protect domestic producers.
Duties on seafood items like mussels and salmon will be phased out over seven years, while tariffs on select metals such as iron, steel, and aluminium scrap will be eliminated over a period of up to 10 years.
Imports of avocados and persimmons will also see tariffs reduced to zero over a decade.
Sensitive sectors protected
India has kept several sensitive sectors out of the agreement to safeguard farmers and small businesses. No tariff concessions have been offered on dairy products, most animal products, key vegetables and pulses, sugar, and edible oils.
The exclusion list also includes sectors such as copper, aluminium, gems and jewellery, and arms and ammunition.
Investment and strategic importance
The $20 billion investment commitment marks a major jump from current levels, with New Zealand’s cumulative FDI in India standing at just $89 million between April 2000 and December 2025.
Strategically, the agreement strengthens India’s presence in the Indo-Pacific by improving access to a high-income, rules-based market. For New Zealand, it provides a stable foothold in one of the world’s fastest-growing major economies amid global trade uncertainties.
The Indian diaspora in New Zealand, numbering over 300,000 people, is expected to play a key role in enhancing trade and investment ties. Easier visa norms and streamlined student pathways could further boost services trade.
Trade snapshot
Bilateral merchandise trade between the two countries stood at $1.3 billion in 2024–25, with India exporting $711.1 million worth of goods and importing $587.13 million.
Total trade in goods and services reached approximately $2.4 billion in 2024, with services trade alone accounting for $1.24 billion, driven by sectors such as travel, IT, and business services.
India’s key exports include aviation fuel, pharmaceuticals, motor vehicles, petroleum products, garments, and machinery. Imports from New Zealand primarily consist of wood products, iron and steel, raw wool, dairy goods, scrap metals, coal, and agricultural inputs.
(With inputs from PTI)
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