New Delhi, Dec. 23 -- India and New Zealand announced Monday they have reached a free trade deal, seeking to deepen economic ties and shore up growth at a time of mounting global trade uncertainties.

The move comes as New Delhi accelerates efforts to diversify export destinations as part of a broader strategy to offset the impact of steep U.S. import tariffs.

A formal signing of the agreement between India and New Zealand is expected in the first quarter of next year after legal scrubbing of the negotiated text, India's chief negotiator Petal Dhillon told reporters.

The India-New Zealand trade agreement, negotiated over nine months, aims to lower tariffs, ease regulatory barriers and expand cooperation across goods, services and invest...