New Zealand says 57% of exports to India will be tariff-free from day one under proposed trade pact

New Zealand Prime Minister Christopher Luxon says 57% of New Zealand exports to India will be tariff-free from day one under the proposed trade pact, a figure his government is using to highlight the deal ahead of Narendra Modi’s visit.

The claim was reported on July 9 by local Indian outlets and attributed to Luxon. It follows the signing of a free trade agreement in New Delhi on April 27, when New Zealand Trade Minister Todd McClay and Indian Commerce Minister Piyush Goyal signed the pact.

What the deal covers

According to AP’s reporting in April, the agreement removes tariffs on all Indian exports to New Zealand and cuts or eliminates tariffs on 95% of New Zealand exports to India.

Luxon’s new figure is narrower and more immediate: 57% of New Zealand exports would enter India tariff-free from the first day the agreement takes effect. The reports do not clarify whether that percentage refers to export value, tariff lines or product coverage.

Why it matters

The announcement gives Luxon a concrete number to sell the pact as a trade gain for New Zealand exporters, especially as the government seeks to deepen commercial ties with India.

The stakes are significant for sectors that sell into the Indian market, including agriculture and other goods exporters. But the agreement is not yet in force, and New Zealand still needs to complete domestic ratification steps before full implementation.

What comes next

The next questions are how the government defines the 57% figure, when the agreement will formally enter into force and whether sensitive sectors such as dairy face carve-outs or slower phase-ins.

Officials have not yet publicly released the detailed tariff schedule in the materials reviewed for this report.