India and New Zealand Finalize Trade Agreement Eliminating Duties on 98% of Goods

India and New Zealand have formally concluded a comprehensive trade agreement that eliminates tariffs on 98% of goods exchanged between the two countries. Under the terms, over 1,700 product categories—including agricultural exports like basmati rice, textiles, and machinery—will enter each other's markets without import duties. The agreement covers approximately $3.4 billion in annual bilateral trade, with an expected increase to $5 billion within five years. This new accord is part of India’s broader strategy to expand its global export footprint, particularly in high-income Asian-Pacific markets. It follows recent trade pacts with Singapore and Australia, signaling a shift toward deeper economic partnerships beyond traditional regional alliances. The agreement also includes provisions for enhanced digital trade cooperation and streamlined customs procedures to reduce transaction costs and improve supply chain efficiency. Key sectors set to benefit include Indian agri-exports, which could see a 25% rise in exports to New Zealand within three years, and New Zealand’s dairy and wine producers, who will gain unfettered access to India’s growing middle-class market. The deal also includes labor and environmental safeguards aligned with international standards, facilitating long-term sustainability. Financial markets reacted positively, with India’s benchmark Sensex rising 1.4% following the announcement. Export-oriented companies such as Tata Chemicals, Reliance Industries, and Godrej Agrovet reported increased investor confidence. Meanwhile, New Zealand exporters noted potential for greater penetration in India’s urban retail networks, especially in premium food and beverage segments.