India and New Zealand sign free trade agreement

• Landmark Free Trade Agreement Signed: India and New Zealand signed a comprehensive Free Trade Agreement (FTA) on April 27, 2026, aiming to significantly boost bilateral trade, investment, and mobility. New Zealand will grant 100% duty-free access to Indian exports, while India will liberalize approximately 70% of its tariff lines, covering about 95% of New Zealand’s exports by value.
• Key Provisions and Sectoral Impacts: The FTA includes immediate tariff elimination for over half of New Zealand’s exports, with more than 80% achieving zero tariffs once fully phased in. It also incorporates tariff-rate quotas (TRQs) for selected agricultural products, expanded services and mobility pathways, and provisions for regulatory alignment. Key Indian sectors like textiles, pharmaceuticals, and engineering goods are set to benefit, while New Zealand’s wine, sheep meat, seafood, and forestry sectors will see significant tariff reductions or eliminations.
• Beyond Tariffs and Future Outlook: The agreement extends beyond traditional tariff liberalization to cover investment facilitation, professional and student mobility, and regulatory cooperation. While sensitive sectors in India are protected through exclusions or quotas, the FTA is expected to enhance supply chain structuring and cross-border investment. Future upgrades are anticipated to further liberalize trade, particularly in sensitive agricultural sectors, and address non-tariff barriers to maximize the agreement’s commercial potential.

Source EY

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