International Trade and Connectivity

India-New Zealand Free Trade Agreement (FTA)

Signed on April 27, this pact represents one of India’s fastest-negotiated trade deals.

• Tariff Removal: Provides immediate duty-free access for 100% of India’s exports to New Zealand. New Zealand exports will see tariffs removed or reduced on 95% of current imports.
• Exclusions: India successfully excluded sensitive dairy products (milk, yoghurt, cheese), certain vegetables (onions, peas), and petroleum products.
• Investment: New Zealand has committed to investing $20 billion in India over 15 years.
• Mobility: Includes provisions for Indian students to work up to 20 hours per week with extended post-study visas.

The Chabahar Port Crossroads

India faces a strategic dilemma as the U.S. waiver for sanctions on Iran’s Chabahar port has lapsed.

• Investment at Risk: India must choose between its $620 million investment and the threat of strict U.S. sanctions.
• Strategic Impact: Abandoning the project would damage India’s claims of sovereign autonomy and its connectivity plans with Central Asia and Afghanistan.