India and New Zealand are set to sign a Free Trade Agreement (FTA) on April 27, marking a significant step in strengthening economic ties and boosting bilateral trade between the two countries. The agreement aims to more than double trade flows to $5 billion over the next five years.
The FTA, which was agreed upon in December 2025, is expected to enhance market access for businesses on both sides by reducing trade barriers and facilitating smoother exchange of goods and services. Negotiations for the agreement were formally launched in March 2025, reflecting a growing momentum in bilateral engagement.
Currently, trade between India and New Zealand remains modest, with total goods and services trade estimated at around $2.4 billion. Achieving the $5 billion target will require a substantial increase in both exports and imports, alongside stronger collaboration in emerging sectors.
India has maintained a trade surplus in recent years, driven by higher goods exports. In FY25, India’s exports stood at over $700 million, compared to imports of around $587 million, resulting in a positive trade balance.
The agreement is expected to provide preferential access to a large share of New Zealand’s exports, while also opening new opportunities for Indian businesses. However, sensitive sectors such as dairy have been excluded from the deal, reflecting careful balancing of domestic economic interests.
The FTA is seen as a strategic move to deepen economic engagement, diversify trade partnerships, and enhance supply chain resilience. It also aligns with India’s broader efforts to expand its global trade footprint through targeted agreements with key partners.
As both countries look to unlock the full potential of their economic relationship, the agreement is expected to pave the way for increased investment, stronger business linkages, and sustained growth in bilateral trade.
