What NZ-India Free Trade Agreement Could Mean for New Zealand Business
New Zealand businesses looking to India may gain greater opportunities under the new New Zealand-India Free Trade Agreement (FTA), which is currently progressing through the ratification process.
New Zealand and India signed the FTA on 27 April 2026, following the conclusion of negotiations in December 2025. The agreement provides New Zealand businesses with improved access to one of the world’s fastest-growing major economies and a market of around 1.4 billion people.
Key benefits for New Zealand
According to a recent Westpac IQ analysis, the agreement extends beyond traditional goods exports, with potential benefits across investment, services, tourism and education.
Key points include:
- 95% of New Zealand’s current exports will receive tariff elimination or substantial tariff reductions
- Estimated tariff savings are around NZ$43 million annually from day one, increasing to approximately NZ$62 million when the agreement is fully implemented, based on current trade levels
- Economic modelling suggests the FTA could add close to 0.1% to New Zealand GDP over the next decade
- The value of merchandise trade benefits could increase as India’s economy grows and the agreement encourages greater bilateral trade
- Opportunities extend into services, investment, tourism and education exports, rather than being limited to goods
- Stronger economic ties with India could also support New Zealand’s trade diversification in an uncertain global environment.
A market with significant growth potential
The immediate tariff savings are only part of the picture. India represents around one fifth of the world’s population, meaning the longer-term opportunity could be considerably greater if New Zealand businesses increase their engagement with the market.
For businesses already exporting to India — or considering international expansion — the FTA may therefore provide a useful reason to reassess market opportunities, supply arrangements and longer-term growth plans.
Read the full analysis
Westpac Senior Economist NZ Darren Gibbs provides further analysis of the agreement and the opportunities it may create for New Zealand.
Read the full Westpac IQ report:
The NZ–India Free Trade Agreement – Westpac IQ »
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Source: Gibbs, D. (24 August 2026) The NZ-India Free Trade Agreement, Westpac IQ. Available at: Westpac IQ