New Delhi, Dec 22 (PTI) India and New Zealand on Monday announced the conclusion of free trade agreement negotiations, a move aimed at boosting bilateral trade in goods and investments.

The talks started in May this year.

New Zealand Prime Minister Christopher Luxon said on Monday that negotiations for a free trade agreement with India have been concluded. The free trade agreement (FTA) reduces or removes tariffs on 95 per cent of our exports to India.

It's forecast that New Zealand exports to India could increase from USD 1.1 billion to USD 1.3 billion per year over the coming two decades, Luxon said in a social media post.

"I've just spoken with India's Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement.

"The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," Luxon said.

In FY25, the bilateral trade was about USD 1.3 billion (India's exports were USD 711.1 million and imports were USD 587.1 million).

New Zealand's average import tariff is just 2.3 per cent, compared with India's 17.8 per cent, and 58.3 per cent of New Zealand's tariff lines are already duty-free.

India's export basket to New Zealand is broad-based but concentrated in fuels, textiles, and pharmaceuticals.

Aviation turbine fuel (ATF) led shipments at USD 110.8 million, followed by clothing, fabrics, and home textiles at USD 95.8 million.

Medicines accounted for USD 57.5 million, while machinery, including turbojets, contributed USD 51.8 million.

Petroleum products were another major component, with diesel exports totalling USD 47.8 million and petrol exports totalling USD 22.7 million.

Other notable exports included automobiles and parts (USD 19.3 million), paper and paperboard (USD 18.3 million), electronics (USD 16.5 million), iron and steel (USD 14.1 million), shrimps (USD 13.7 million), basmati rice (USD 11.9 million) and gold jewellery (USD 9.9 million).

New Zealand's exports to India, by contrast, are dominated by raw materials and agricultural inputs.

Wood and wood articles (USD 78.4 million) and wood pulp (USD 39.8 million) underline linkages in paper, packaging and construction.

Steel scrap exports reached USD 71.2 million, while aluminium scrap totaled USD 42.9 million, reflecting India's dependence on recycled metal inputs.

In energy and heavy industry, coking coal exports totalled USD 48.8 million, alongside high-value turbojets valued at USD 66.2 million.

Agricultural and animal-based products also play a significant role, led by shorn wool (USD 47.3 million), milk albumin (USD 32.1 million), apples (USD 32.8 million) and kiwi fruit (USD 17 million).

Services trade is a more significant pillar of the relationship.

In FY24, India's services exports to New Zealand stood at USD 214.1 million, while New Zealand's services exports to India totaled USD 456.5 million.

India's strengths lie in IT and software services, telecommunications support, healthcare and financial services.

New Zealand's services exports are led by education -- driven by Indian students -- followed by tourism, fintech solutions, and specialised aviation training, he added. PTI RR DRR

India-New Zealand free trade agreement concluded, reducing tariffs on most goods and strengthening market access and services ties. India and New Zealand concluded negotiations for a free trade agreement that will reduce or eliminate tariffs on a substantial share of goods and aim to expand bilateral trade and investment. The agreement is reported to remove or lower duties on 95% of New Zealand's exports to India and is presented as enhancing market access. The trade relationship is characterized by complementary goods-India's exports concentrated in fuels, textiles and pharmaceuticals, and New Zealand's in raw materials and agricultural inputs-and a significant services component led by education and IT.