India and New Zealand have agreed on a free trade deal expected to significantly increase bilateral trade and investment. India gains zero-duty access for exports to New Zealand, while New Zealand receives phased tariff concessions on about 70% of Indian tariff lines covering 95% of its exports to India. The deal includes a $20 billion investment commitment and easier access for skilled Indian professionals to New Zealand's labor market. This agreement reflects broader efforts by both countries to reduce reliance on vulnerable trade routes amid uncertainties caused by US tariffs. Certain sensitive agricultural products are excluded to address domestic concerns in both countries. The deal is pending legal review before formal signing in early 2026.