New Zealand PM Says 57% Exports To India Will Be Tariff-Free; How Will The Trade Deal Impact India?
As Prime Minister Narendra Modi prepares to visit New Zealand, the India-New Zealand Free Trade Agreement (FTA) is once again in the spotlight. Prime Minister Christopher Luxon said ahead of the visit the deal would give a major boost to his country’s exporters, with 57 per cent of New Zealand exports to India enjoying zero tariffs from day one.
The comments also have raised a key question for Indian businesses and investors: what does this trade deal really mean for India?
New Zealand PM Says 57% of Exports Will Be Tariff-Free
Christopher Luxon also took to X to promote the benefits of the deal for New Zealand exporters.
“New Zealand businesses are set to boom with our India Trade Deal,” he wrote. “57% of everything we export to India will be tariff free from day one.”
The statement was issued prior to Prime Minister Narendra Modi’s two-day visit to New Zealand on July 10-11. It will be the first visit to the country by an Indian prime minister in almost four decades.
The visit is meant to enhance cooperation in trade, commerce, defence and other strategic issues, the government said.
What’s The Significance Of This Trade Deal
India and New Zealand revived the free trade deal negotiations this year after a gap of many years. The FTA is expected to boost bilateral trade and investment and reduce barriers to trade. Negotiations will provide a boost to bilateral cooperation in agriculture, services and the technology sector, read a government statement. India is one of the fastest-growing major economies in the world and is a huge market of over 1.4 billion consumers for New Zealand.
Earlier, announcing PM Modi’s visit, Luxon had said on X, “I’m delighted to announce that Indian Prime Minister Narendra Modi will make his first official visit to New Zealand next week.”
He also said, “We are taking the two countries’ relationship to the next level with our New Zealand-India Free Trade Agreement, signed in April, which will deliver more jobs, higher exports and stronger economic growth for New Zealand.”
How India Could Benefit
The pact is likely to offer duty-free access to almost all of India’s exports to New Zealand by removing tariffs on 8,284 tariff lines.
Potential beneficiaries of such measures, if executed as planned, are:
MSMEs
IT and tech services
Electronic equipment
Solar equipment and
Fabric.
Leather Goods
Engineering products
The deal is also expected to spur investment, with estimates pointing to some $20 billion in investment over the next five years.
The ease of access to a developed, high-income market could create new business avenues for Indian exporters and support the country’s broader Indo-Pacific trade strategy.
Are There Any Challenges For India?
The deal opens new export opportunities but also adds potential competition to certain domestic industries.
India has agreed to remove tariffs on some 70% of imports from New Zealand. This could lead to increased imports of such products as wool, timber, fruits and wine.
Some analysts have also expressed concern that increased market access for New Zealand agricultural products could lead to increased competition for some Indian farmers if more farm products were to enter the domestic market.
But supporters of the deal say closer trade and investment ties could mean long-term economic gains for both countries.
What Happens Next?
Trade will be a key focus of Prime Minister Modi’s meeting with Christopher Luxon in Auckland. Defence cooperation, business partnerships and people-to-people ties will also be on the agenda of the leaders.
During his visit, Prime Minister Modi will also meet business leaders, sports personalities and members of the Indian diaspora.
India is signing trade pacts with some of the leading global partners; the New Zealand pact could be yet another step towards increasing the country’s export markets and strengthening economic ties in the Indo-Pacific region.
Also Read: Kalyan Jewellers Shares Jump 19% After Strong Q1 Update: What Investors Should Know
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Bussiness, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
The post New Zealand PM Says 57% Exports To India Will Be Tariff-Free; How Will The Trade Deal Impact India? appeared first on NewsX.
Comments are closed.