India and New Zealand have concluded a landmark Free Trade Agreement that will make Kiwi apples, kiwifruit, and wine more affordable to Indian customers while providing New Zealand exporters a significant advantage over competitors such as the United States. Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon announced the deal after just nine months of negotiations, resuming talks that had been delayed for nearly a decade.
The agreement will eliminate or sharply reduce tariffs on around 95% of New Zealand’s exports to India. More than half of the products will be duty-free on the first day of implementation, with tariffs on several other items gradually phased out. New Zealand is also the first country to gain preferential market access for apples under an Indian trade deal, a move that is expected to transform India’s imported fruit industry.
Apart from goods, the pact involves a significant investment commitment of over $20 billion over 15 years, as well as new avenues for Indian professionals and students. India has, however, protected sensitive industries such as dairy and some agricultural products. The agreement is viewed as a strategic step towards strengthening commercial connections in the face of global trade uncertainty.
