India, New Zealand Seal Groundbreaking Trade Deal, Paving Way for $20 Billion Investment

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India and New Zealand have reached a historic agreement on a free trade deal, marking a significant milestone in their bilateral relations. The deal, announced on Monday, will provide Indian goods with zero-duty access in New Zealand and secure a $20 billion investment commitment from the island nation over 15 years. In return, India has allowed calibrated market access in 70.03% of tariff lines, covering 95% of New Zealand's exports. The agreement, concluded nine months after negotiations began, reflects the 'shared ambition and political will to further deepen ties' between the two countries. Indian Prime Minister Narendra Modi and his New Zealand counterpart, Christopher Luxon, welcomed the deal, expressing confidence that bilateral trade will double over the next five years. The FTA will benefit India's services sector, including IT and IT-enabled services, professional services, education, and tourism. It also provides improved entry and stay provisions for Indian professionals and students, including work opportunities during studies and post-study work pathways. New Zealand's elimination of duties on 100% of its tariff lines will make Indian labour-intensive sectors globally competitive in the market. The deal also includes an investment clause, with New Zealand committing to facilitate investments of $20 billion into India over the next 15 years. The agreement has been welcomed by Indian Commerce Minister Piyush Goyal, who described it as 'most comprehensive and forward-looking, reflecting the vision of our two leaders' to take the relationship to 'much higher strategic' levels. The deal is expected to be signed in the first half of 2026, following 'legal scrubbing' and parliamentary approval in New Zealand. However, the agreement has faced opposition from New Zealand's parliamentary coalition partner, NZ First, which has expressed concerns over immigration and dairy concessions. Despite this, the deal marks a significant step forward in India-New Zealand relations, with the two countries looking to strengthen trade, education, and people-to-people ties.