New Zealand concludes a free trade agreement with India

New Zealand and India struck a free trade agreement, both governments said on Monday, making it easier for New Zealand's exporters to reach the world's biggest population and an economy forecast to be worth NZ$12 trillion ($7 trillion) by 2030.

The agreement eliminates or reduces tariffs on 95% of New Zealand's exports to India with more than half of products to be duty free on day one of the pact, improving access to India's rapidly expanding middle class, the New Zealand government said.

New Zealand would offer some 1,667 temporary work visas a year for people in areas where it has skills shortages, including doctors, nurses, teachers, technology professionals and engineers, and another 1,000 places a year in its working holiday visa program, matching Australia's free trade pact with India.

"The gains are wide-ranging and significant," said New Zealand Prime Minister Christopher Luxon.

"India is the world's most populous country and is the fastest-growing big economy, and that creates opportunities for jobs for Kiwis, exports and growth," he added.

The countries expect to sign the agreement in the first half of 2026, the New Zealand government said.

New Zealand's trade minister, Todd McClay, said the deal put the country on an equal or better footing than other countries which traded with India and "will deliver thousands of jobs and billions in additional exports".

The Indian government confirmed the pact without giving further detail. India's trade minister was scheduled to speak with reporters later on Monday.

The deal makes good on a 2022 election promise from New Zealand's governing National Party that if elected it would finalise a New Zealand-India free trade agreement in its first term.

But parliamentary approval was not immediately assured. New Zealand First, with which the Nationals have a coalition and which holds eight of the 123 seats, would vote against the deal, said NZ First leader Winston Peters.

The deal "gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy", Peters said.

Two-way trade between the two countries totalled NZ$3.14 billion in 2024, dominated by pharmaceuticals from India and forestry and agricultural products from New Zealand, including wool, logs and apples.