Union Commerce Minister Piyush Goyal told journalists that the agreement will "translate this goal into concrete economic outcomes" by removing import duties on all Indian goods shipped to New Zealand and granting tariff‑free or sharply reduced levies on roughly 95% of New Zealand’s exports to India, according to New Zealand’s foreign trade office.
While the deal opens most sectors, Goyal emphasized that India has kept protections on sensitive items such as dairy, onions, almonds, chickpeas, peas, artificial honey and sugar, offering no concessions on these products.
The minister said the pact will especially benefit India’s micro, small and medium enterprises, farmers, handloom artisans and weavers, creating new market opportunities across both economies.
New Zealand’s Minister of Trade and Investment Todd McClay highlighted the timing, noting that finalising the agreement amid global “uncertainty” and rising trade barriers gives confidence to business communities to expand relationships and trade.
Merchandise trade between the two countries, excluding services, stood at $1.3 billion in the 2024‑25 fiscal year, with New Zealand ranking as India’s ninth‑largest export market.
As part of the deal, Wellington pledged $20 billion in foreign direct investment into India, focusing on sectors where New Zealand holds cutting‑edge technology, such as specialised agriculture, kiwi farming, apiculture and advanced engineering manufacturing.
Goyal added that Indian manufacturers could use New Zealand’s investment to produce goods for export to about two‑thirds of the global economy where India enjoys preferential market access, citing lower labour costs and strong intellectual‑property protections as incentives.
When asked about recent U.S. sanctions legislation targeting countries buying Russian oil, Goyal said India is studying the fine print of the law before deciding on any response.
The commerce minister also hinted at forthcoming progress on India’s trade talks with Chile, describing “good news” expected in the coming months, and confirmed that negotiations with Canada are being fast‑tracked, with a fifth round of talks scheduled for Oct. 5.