India set to sign trade agreement with New Zealand soon

The Indian government will soon sign a free trade agreement (FTA) with New Zealand after several rounds of negotiations since the discussion began in March this year.   

Sources told CNBC-TV18 that the two

countries will sign the deal "anytime now," having secured the Union Cabinet's go-ahead to further bilateral trade and investment.

When New Zealand Prime Minister Christopher Luxon visited India in March 2025

, the two leaders discussed deepening trade and investment.

Modi had encouraged cooperation and investment across fields such as dairy, food processing, and pharma, as well as renewable energy and critical minerals.

"Joint work shall be done in Forestry and Horticulture. I am confident that the large business delegation accompanying the Prime Minister shall get an opportunity to explore and understand the new possibilities in India," PM Modi said at the time. 

However, much has changed for India in the months that followed after the US levied a hefty 50% tariff that came into effect in August, pushing the country to diversify export destinations more aggressively.  

This week, PM Modi signed an ambitious trade deal with Oman during a two-day visit, where the Gulf country ensured zero duty on roughly 98% of tariff lines that could boost gems, textiles, pharma, and automobiles, among others.

In July, India signed an FTA with the UK that is expected to increase bilateral trade by $34 billion a year from 2040. 

Trade ties with New Zealand 

From New Zealand, India primarily imports wool, iron and steel, fruit and nuts, and aluminium and exports pharmaceutical products, mechanical machinery, textile articles and pearls, precious stones and metals.

In the year 2023-24, New Zealand conducted trade worth $1.75 billion, which includes exporting goods and services worth $0.84 billion and importing $0.91 billion.

PM Modi also said the two countries have decided to strengthen defence and security ties as well. Plans to develop a roadmap for collaboration in training, port visits, and the defence industry in general were announced.

"Our navies are working together in the Combined Task Force-150 for maritime security in the Indian Ocean," Modi said at the time.