India and New Zealand signed a Free Trade Agreement (FTA) in New Delhi on Monday night. As reported by the Economic Times, India secured duty-free access for 100% of its tariff lines under the pact, a move expected to bolster exports from labour-intensive industries such as textiles, leather, and processed foods.
In parallel, New Delhi has adopted a calibrated liberalisation schedule for its own market, removing tariffs immediately on around 30% of tariff lines, phasing in reductions on a further 35.6%, and maintaining protection for sensitive sectors including dairy and key agricultural products.
According to 1News, once fully implemented the agreement will eliminate or reduce tariffs on 95% of New Zealand’s exports to India. Nearly 57% of these exports will become duty-free immediately, with this share rising to 82% over time.
Following the conclusion of the trade pact with New Zealand, India is expected to finalise two additional trade agreements—with the European Union and the United States—in the coming months, Indian Commerce and Industry Minister Piyush Goyal said on Monday.
