India signs New Zealand free trade deal as Modi accelerates global FTA push

India and New Zealand have signed a free trade agreement in Delhi, granting 100% duty-free access for Indian exporters and securing an estimated $20 billion in New Zealand investment commitments. Summary India and New Zealand signed a Free Trade Agreement in Delhi, eliminating and lowering tariffs across a range of goods New Zealand grants 100% duty-free access to Indian exporters under the deal Agreement includes an estimated $20 billion in investment commitments from New Zealand Deal adds to India's expanding FTA network, which includes agreements or active negotiations with the EU, UK and Oman India has historically been cautious on free trade agreements, making the current pace of deal-making a significant strategic shift India is the world's fifth largest economy and one of the fastest growing major markets, making FTA access increasingly attractive to trading partners New Zealand's economy is heavily export-oriented, with dairy, meat, wool and horticulture among its key export sectors likely to benefit from Indian market access India's IT services, pharmaceuticals, textiles and manufactured goods sectors are among the primary beneficiaries of duty-free access to New Zealand Source: Various India and New Zealand have signed a Free Trade Agreement in Delhi, granting full duty-free access to Indian exporters and securing an estimated $20 billion in investment commitments from Wellington, in the latest milestone in what is becoming one of the most ambitious trade expansion programmes of any major economy. The deal lowers and eliminates tariffs across a broad range of goods and represents a significant deepening of economic ties between two countries that have historically had a limited trade relationship. For New Zealand exporters, the agreement opens preferential access to a market of 1.4 billion people and one of the world's fastest growing major economies. For India, the deal adds another important partner to a rapidly expanding network of bilateral trade agreements that is reshaping the country's position in global commerce. India's willingness to pursue free trade agreements at this pace marks a notable departure from its historically cautious approach to trade liberalisation. For much of the past two decades, New Delhi was reluctant to open its domestic market to foreign competition, withdrawing from the Regional Comprehensive Economic Partnership in 2019 amid concerns about Chinese import competition and the impact on local industry. That caution has given way to a far more proactive stance under the current government, driven by a recognition that deep trade ties are essential to sustaining the foreign investment flows and export growth needed to support India's development ambitions. The New Zealand deal sits alongside a series of agreements and negotiations that underline the scale of that shift. India has finalised or is in advanced talks on free trade agreements with the United Kingdom, the European Union and Oman, a combination that would give Indian exporters preferential access to some of the world's wealthiest consumer markets. The EU deal in particular, if concluded, would be transformative in scale, covering a trading relationship worth hundreds of billions of dollars annually. For New Zealand, the agreement is part of a broader effort to diversify trade relationships at a time of heightened global uncertainty. Wellington has long sought improved access to the Indian market for its primary sector exports, including dairy, meat, wool and horticulture, though the terms of agricultural access in FTAs with India have historically been a sticking point given New Delhi's sensitivity around farm sector competition. The $20 billion investment commitment signals that New Zealand sees the relationship as extending well beyond goods trade into longer-term capital deployment. India's export sectors set to benefit from duty-free access to New Zealand include information technology services, pharmaceuticals, textiles, en