India Signs Major Free Trade Pacts with New Zealand and EU

The Government of India has rapidly expanded its global trade network by concluding comprehensive free trade agreements with both New Zealand and the European Union. In a deal signed April 27, 2026, India and New Zealand agreed to eliminate tariffs on 100% of Indian exports and up to 95% of New Zealand's imports. New Zealand Prime Minister Christopher Luxon noted that 57% of its exports to India will be tariff-free immediately, covering sheep meat, wool, and coal, while other duties on honey and wine will phase out over a decade. To solidify this partnership, Prime Minister Narendra Modi conducted a historic two-day state visit to Auckland from July 10 to 11, 2026.

Beyond tariffs, India and New Zealand are establishing the Agriculture Productivity Partnership and firmer shipping routes to mitigate supply chain risks linked to Middle East instability. Air India and Air New Zealand have sought regulatory approval to cooperate on flights to increase connectivity.

Simultaneously, India concluded what its chief negotiator called its most ambitious agreement to date with the European Union. This pact covers goods, services, and digital trade, aiming to increase Indian market access for labor-intensive sectors such as textiles and leather. The EU expects its exporters to save approximately four billion euros in tariffs. A legal review is slated for completion in July 2026, with the agreement potentially entering into force by the second quarter of 2027.