New Zealand, India Sign Free Trade Deal

India and New Zealand signed a free trade agreement in New Delhi on April 27, with Trade Minister Todd McClay and Indian Commerce Minister Piyush Goyal putting their names on the pact. (beehive.govt.nz) (mfat.govt.nz) New Zealand’s government said the agreement will remove tariffs on 92.6% of its exports to India by value, while India will gain tariff cuts on goods including kiwifruit, apples, onions and some machinery. (beehive.govt.nz) (aol.com) The New Zealand side highlighted duty-free access for bulk infant formula and other high-value dairy preparations over seven years, plus a 50% tariff cut for milk albumins within a New Zealand-specific quota. (beehive.govt.nz) India’s commerce ministry said the pact also covers services and mobility, with New Zealand opening all tariff lines to India and granting market access in 118 services subsectors. Reuters reported the agreement includes easier access for professionals and skilled workers. (aol.com) (gulfbusiness.com) The agreement did not come out of nowhere. India and New Zealand announced the relaunch of free-trade negotiations during Prime Minister Christopher Luxon’s visit to India in March 2025, then said they had concluded the deal on December 22, 2025. (mea.gov.in) (beehive.govt.nz) New Zealand’s foreign affairs ministry says two-way trade with India totals NZ$3.95 billion a year. The same ministry says the signed pact is “concluded but not in force,” meaning both countries still have to complete their domestic approval processes. (mfat.govt.nz) McClay traveled to New Delhi with a cross-party delegation of lawmakers and more than 30 business representatives for the signing ceremony. The New Zealand government said the event was held in front of a large group of Indian and New Zealand businesses. (beehive.govt.nz 1) (beehive.govt.nz 2) For New Zealand, the pitch is export diversification beyond traditional markets. For India, Reuters said the timing fits a push to widen export destinations as global trade disruptions, U.S. tariffs and conflict-linked shipping risks weigh on commerce. (mfat.govt.nz) (aol.com) The next step is ratification, not more negotiation. Until that happens, the ceremony in New Delhi marks a signed deal on paper, not yet an agreement in force. (mfat.govt.nz)