New Zealand PM announces major tariff cuts under India trade deal
New Zealand Prime Minister Christopher Luxon announced on Thursday that 57% of New Zealand's exports to India will become tariff-free immediately under a recently signed free trade agreement (FTA). The announcement came just one day before Indian Prime Minister Narendra Modi's scheduled two-day state visit to New Zealand, the first by an Indian premier in nearly 40 years.
Luxon took to social media platform X to welcome the pact, stating that it would significantly benefit New Zealand businesses by unlocking enhanced access to the Indian market. "New Zealand businesses are set to boom with our India Trade Deal. Fifty-seven per cent of everything we export to India will be tariff-free from day one," Luxon wrote.
Trade agreement signed in April to boost jobs and growth
The India-New Zealand Free Trade Agreement, signed in April 2026, aims to intensify bilateral commerce, catalyse investment, and expand cooperation across goods and services. Luxon emphasised that the deal would deliver more jobs, higher exports, and stronger economic growth for New Zealand. "We are taking the two countries' relationship to the next level with our New Zealand-India Free Trade Agreement, signed in April, which will deliver more jobs, higher exports and stronger economic growth for New Zealand," he added.
Under the agreement, all Indian exports will receive duty-free access to the New Zealand market. For New Zealand, the FTA secures a foothold in one of the world's fastest-growing major economies, providing its goods and services access to a consumer base of 1.4 billion people. Luxon said this would bring "more money into Kiwi communities, creating jobs and lifting wages."
Historic state visit by PM Modi to New Zealand
Prime Minister Narendra Modi's visit to New Zealand from July 10 to 11 marks a milestone in bilateral ties. Earlier, Luxon announced the visit on X, saying, "I'm delighted to announce that Indian Prime Minister Narendra Modi will make his first official visit to New Zealand next week." He noted that India is one of the world's largest and fastest-growing economies and is vital for New Zealand's economic well-being.
During his stay in Auckland, PM Modi will hold high-level bilateral discussions with Luxon to review the full spectrum of relations, with a focus on trade, commerce, and defence cooperation. He is also expected to interact with leading business and sports figures and address the Indian diaspora.
Strategic implications for both nations
For India, the FTA strengthens its footprint in a high-income Pacific economy, aligning with its overarching Indo-Pacific economic strategy. For New Zealand, it provides an expanded foothold in one of the world's fastest-growing major economies amid global trade volatility. The deal is expected to boost bilateral trade volumes and create new opportunities for businesses on both sides.
