Image Source: Deccan Chronicle
India and New Zealand concluded their FTA, cutting tariffs on 95% of Kiwi exports and granting India zero-duty access. However, sensitive products like dairy, coffee, onions, sugar, and edible oils were excluded to protect local industries. The deal promises $20 billion in investment, marking a milestone in bilateral ties.
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India and New Zealand have formally concluded negotiations on their Free Trade Agreement (FTA), hailed as a landmark deal to deepen bilateral economic ties. The agreement, finalized in December 2025, promises to liberalize trade and boost investment flows, but notable exclusions have sparked debate.
Trade Expansion
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The FTA eliminates or reduces tariffs on 95% of New Zealand’s exports, offering unprecedented access to India’s 1.4 billion consumers.
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India gains zero-duty access to all New Zealand tariff lines, strengthening its export competitiveness in sectors like engineering, automobiles, and agriculture.
Sensitive Exclusions
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Market access for dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils, and rubber has been excluded.
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These exclusions reflect India’s effort to protect domestic farmers and sensitive industries, particularly its vast dairy sector.
Strategic Significance
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The deal is expected to bring $20 billion in investment from New Zealand into India over the next 15 years.
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Leaders emphasized the FTA as a “once-in-a-generation” opportunity to diversify trade and strengthen geopolitical ties.
While the agreement opens new doors, the absence of dairy and other key commodities underscores the delicate balance between liberalization and safeguarding domestic interests.
Sources: Financial Express, Outlook Business, Orissa Post, NZ Ministry of Foreign Affairs and Trade
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