In a glowing endorsement, New Zealand’s Prime Minister Christopher Luxon called the fresh Free Trade Agreement with India a golden opportunity that comes once in a lifetime. Signed on April 27, the deal promises to supercharge bilateral trade by eliminating tariffs on nearly all goods exchanged between the two countries.
New Zealand gains complete duty-free access for 100% of its exports to India, while 95% of Indian goods entering New Zealand will see tariff cuts. This includes immediate relief on 57% of Kiwi exports, expanding over time. Luxon shared his excitement via a weekend video on X, pointing to India’s 1.5 billion population and its trajectory toward becoming the third-largest global economy.
‘Our high-quality products and services are exactly what India’s rising middle class craves,’ Luxon explained. As India transitions from low to middle-income status, demand for New Zealand goods will surge. The PM painted a bright picture: increased incomes for New Zealanders, more jobs fueled by Indian growth, and stronger competitiveness on the world stage.
The agreement slashes duties on key New Zealand exports like clothing, leather products, pottery, carpets, vehicles, and parts – all previously hit with 10% tariffs. Looking ahead, New Zealand commits to injecting $20 billion into the Indian market over 15 years.
Mobility provisions mark a historic breakthrough. Indian students can now access post-study work visas, working 20 hours weekly during studies. Skilled workers get three-year temporary visas (capped at 5,000 annually), and 1,000 young Indians qualify yearly for working holiday visas allowing multiple 12-month entries.
India protected its interests by keeping dairy items – milk, cream, whey, curd, cheese – and key farm products out of the deal. This balanced FTA not only boosts immediate trade but lays the foundation for deeper economic collaboration as both nations grow together.
