India NZ FTA Takes Effect Amid Global Growth Optimism

India and New Zealand have finalized a free-trade agreement (FTA) that is set to take effect on October 20. The deal will grant Indian exporters duty-free access across all tariff lines in New Zealand, while India has extended concessions on about 70% of tariff lines, covering around 95% of current bilateral trade value.

New Zealand's tariffs on Indian products currently range from zero to 10%, with an average of 2.2%. In the last nine years, India has turned a trade deficit with New Zealand into a surplus, although exports to New Zealand fell 20% in 2025-26, led by petroleum products.

Global rating agencies and multilateral organizations have raised their forecasts for India's economic growth for the fiscal year 2026-27. Four out of five agencies now project growth of at least 7%, citing the economy's resilient performance amid global uncertainty.