India and New Zealand sign free trade deal

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New Delhi: India and New Zealand officially signed a free trade deal on Monday, aiming to bolster exports and economic cooperation amid global instability fueled by the war in the Middle East. The agreement, which concluded negotiations in December 2025, seeks to open new markets as global trade faces disruptions from energy shocks and international tariff disputes.

Under the terms of the deal, India will secure expanded access for its engineering goods, textiles, and machinery while maintaining protections for its sensitive domestic dairy industry. 

In exchange, New Zealand exporters will benefit from reduced tariff barriers on forestry, wool, and lamb, along with quota-based access for fruits like apples. Indian Commerce Minister Piyush Goyal noted that the "forward-looking agreement" is expected to facilitate $20 billion in investment into India.

New Zealand Prime Minister Christopher Luxon hailed the ‘once-in-a-generation’ pact for providing "unprecedented access" to the world's most populous nation, predicting it will drive job growth in local farming and orchard sectors. 

Similarly, Indian Prime Minister Narendra Modi described the signing as a ‘landmark moment’ that will enhance cooperation in manufacturing, technology, and innovation.

Despite the official optimism, the deal has drawn criticism in Wellington. Concerns have been raised by the NZ First party regarding a mandatory NZ$34 billion (US$20 billion) investment New Zealand must make in India over the next 15 years. Additionally, some officials expressed caution over provisions granting greater visa access for skilled Indian workers, which could potentially result in over 20,000 migrants entering New Zealand.

Photo Credits: AFP