Recently, the office of the Prime Minister of India issued a statement saying that Indian Prime Minister Modi and New Prime Minister Jacinda Ardern jointly announced the end of negotiations on a bilateral free trade agreement (FTA).

The statement said that the negotiations were launched during Ard's visit to India in March this year. The leaders of the two countries believe that the negotiations have been completed within 9 months, reflecting the common will of both sides deepen relations. The FTA will deepen bilateral economic cooperation, improve market access, promote investment flows, and strengthen strategic cooperation between the two countries.

The statement said the leaders of the two countries expect bilateral trade to double in the next five years and New Zealand's investment in India to reach $20 billion in the next 15.

According to the agreement, New Zealand will grant zero-tariff market access to 100% of India's exports. Correspondingly, India will grant access and tariff reductions to New Zealand goods in 70% of tariff lines, covering 95% of bilateral trade.

It is expected that the main beneficiary in New Zealand include forestry, agricultural product exports, horticulture, fish and seafood, honey, wine, services and industrial products.

India's labor-ensive industries, such as textiles and clothing, leather shoes, will benefit from duty-free access to New Zealand.

In the first half of this year, trade between and New Zealand reached $2.1 billion, with bilateral trade almost balanced, with New Zealand's exports to India slightly higher, at about $1.1 billion. Twoway merchandise trade between the two countries increased from $873 million in India's 2023-2024 fiscal year to $1.3 billion the 2024-2025 fiscal year, an increase of 49%.

The New Zealand Ministry of Foreign Affairs and Trade also issued a statement confirm this. The statement said that according to the results of the negotiations, 95% of New Zealand's current total exports to India will enjoy duty-free or tariff; more than 50% (by trade value) of export goods will enjoy zero tariffs from the first day the agreement comes into effect; and the proportion of goods enjoying tariffs (by trade value) will increase to more than 80% after the agreement is fully implemented. The average applicable tariff rate for New Zealand's exports to India is to fall to about 3%.

The Associated Press commented on this, saying that India's move aims to accelerate the process of diversifying export destinations to offset the of the United States imposing tariffs on Indian goods exported to the United States. The Economic Times of India reported that this is the third FTA signed by the Modi government this year. July 24 and December 18 of this year, India signed FTAs with the United Kingdom and Oman respectively.

At present, India is having trade negotiations the United States, but has not yet issued an official announcement on any form of tariff truce.