New Delhi: New Zealand Prime Minister Christopher Luxon has said the newly concluded India-New Zealand Trade Deal will significantly boost economic ties, with 57 per cent of New Zealand’s exports to India becoming tariff-free from the first day of implementation.

In a post on X, Luxon said, “New Zealand businesses are set to boom with our India Trade Deal. Fifty-seven per cent of everything we export to India will be tariff free from day one.”

The announcement comes ahead of Prime Minister Narendra Modi’s two-day visit to New Zealand from July 10 to 11, the first visit by an Indian Prime Minister to the country in nearly four decades.

Trade and defence to top agenda

According to official sources, Modi’s visit will focus on strengthening cooperation in trade, commerce, investment and defence, while also deepening strategic ties between the two nations.

The agreement is expected to expand market access for businesses and strengthen bilateral economic cooperation.

Major gains for Indian exporters

Economist Mitali Nikore of Nikore Associates said bilateral merchandise trade between India and New Zealand reached USD 1.3 billion in 2024-25, compared to USD 873 million the previous year. Including services, total trade now stands at around USD 2.4 billion.

She noted that India’s exports to New Zealand have grown by 130 per cent over the past decade, while imports increased by just over 7 per cent.

Several labour-intensive sectors—including textiles, apparel, leather goods, footwear, carpets, ceramics and auto components—will benefit immediately as New Zealand removes tariffs of around 10 per cent on nearly 450 product categories.

Sensitive sectors remain protected

Nikore pointed out that India has deliberately excluded dairy products, sugar, edible oils, spices, coffee, rubber and onions from the agreement to safeguard domestic farmers and rural livelihoods.

Experts believe the balanced approach protects India’s agricultural sector while creating new opportunities for manufacturing exports, employment and stronger bilateral trade.