Business & Economics
India & New Zealand Clinch Nine-Month FTA Deal Slashing Tariffs on 95% of Kiwi Exports
On 22 Dec 2025, Prime Ministers Modi and Luxon declared FTA negotiations finished after just nine months, clearing the way for signing in early 2026 and granting Indian goods zero-duty entry to New Zealand while phasing out duties on nearly all New Zealand exports.
Focusing Facts
- Talks opened March 2025 and concluded 22 Dec 2025—nine months, India’s fastest modern FTA.
- The pact removes or cuts tariffs on 95 % of New Zealand exports to India (over 50 % duty-free on day one).
- New Zealand committed US$20 billion of investment in India over 15 years.
Context
Seen against the 1983 Australia–NZ CER that knitted two small economies together, this deal echoes smaller nations hedging bets when global blocs harden—India stepped out of RCEP in 2020, NZ lost preferential UK access after 1973 and has sought Asian outlets ever since. The agreement fits a decade-long trend of India stitching ‘friendly-market’ FTAs (UAE 2022, Australia 2022, UK 2025) to diversify amid tariff spats with the US and rising protectionism. While current bilateral trade barely tops US$2.4 bn—one-tenth of India-Australia flows—the framework signals how services, mobility and diaspora links may matter more than goods lines. On a 100-year arc, such minilateral pacts illustrate the slow fracturing of the post-1995 multilateral order into overlapping, values-tinged trade webs; whether this accord is remembered will depend on execution and if it seeds supply-chain integration beyond tariff headlines, unlike several 2000s-era FTAs that fizzled once photo-ops faded.
Perspectives
Indian pro-government media outlets
UNI, ANI, News18 — They frame the pact as a historic, win-win milestone that will double trade, attract US$20 billion in Kiwi investment and showcase Prime Minister Modi’s fast, reform-driven diplomacy. By amplifying official quotes and skipping trade-offs such as dairy exclusions or NZ political pushback, the coverage reinforces domestic political messaging and economic boosterism. ( //www.uniindia.com/fadnavis-orders-probe-into-mumbai-pub-fire/states/news/1090400.html , Asian News International (ANI) )
International wire services and global outlets
Associated Press via Seattle Times & Daily Mail, TRT World — The deal is depicted as one piece of India’s wider drive to hedge against global tariff uncertainty, with analysts noting current trade is modest and calling the pact more a framework for future cooperation than a true breakthrough. The outside-in focus can underplay India’s internal political stakes and accentuate global headwinds, reflecting a detached lens that may overlook local optimism or strategic motives.
Policy think-tanks and New Zealand political skeptics
GTRI note, NZ First — They contend the agreement’s real impact hinges on follow-up steps, warning it remains largely symbolic and may give Wellington too little on dairy while loosening immigration rules. Highlighting limitations serves domestic constituencies wary of foreign competition and job displacement, possibly discounting the pact’s longer-term strategic or services-sector benefits. ( Asian News International (ANI) , GEO TV )