India Advances Trade Ties With New Zealand FTA and EU Business Delegation

The Government of India is advancing a strategy to diversify its export markets through major free trade agreements with New Zealand and the European Union. A pact with New Zealand is expected to enter into force by the end of 2026, following a 93 to 26 vote in the New Zealand Parliament. This agreement grants India immediate zero-tariff access for chemicals, automobiles, and agricultural machinery, while New Zealand will see tariff reductions on up to 95 percent of its exports over eight years.

Beyond trade, India and New Zealand have established a strategic partnership encompassing defense, security, and climate change. Air India and Air New Zealand also plan to launch direct flights within two years to support these ties. New Zealand's Minister for Trade and Investment, Todd McClay, stated that the agreement helps build resilient supply chains to mitigate instability caused by geopolitical tensions in West Asia.

Simultaneously, India is pursuing a free trade agreement with the European Union. A report by Rubix Data Science suggests this pact could allow India to redirect 10-11 billion USD in exports from the United States to the EU, reducing dependence on a single market. To advance these ties, Union Commerce and Industry Minister Piyush Goyal is leading a high-level business delegation to Spain, Belgium, and Finland from July 13 to 17. This follows a joint announcement of the FTA's conclusion by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen in January.