India and New Zealand have signed a comprehensive free trade agreement (FTA), the provisions of which will come into effect by December 2026, a government statement said on Tuesday, April 28.
Under the deal, India will gain 100 percent duty-free market access, a $20 billion foreign direct investment (FDI) commitment over 15 years, and easier labour mobility, the statement said.
This is India’s seventh FTA in the past five years, after agreements with Mauritius, the UAE, Australia, European Free Trade Association countries, the UK and Oman. Of these, the FTAs with the UK, Oman and New Zealand are yet to be implemented. The others are already operational.
New Zealand trade minister Todd McClaydeal said that the agreement would be tabled in parliament on Tuesday, April 28, followed by a short select panel process allowing public submissions. It will return to the full parliament for debate.
“We expect we can have it in force before the end of this year,” he added.
India will open about 70 percent of tariff lines, covering nearly 95 percent of New Zealand’s exports.
