A free-trade agreement signed between India and New Zealand has marked yet another regional push towards diversification and away from overdependence on major powers.

The deal, which comes after 15 years of on-and-off negotiations, gained urgency in recent weeks as Indian exporters contend with the closure of the Strait of Hormuz and steep American tariffs that have rattled supply chains.

New Zealand for its part has been pursuing a strategy to reduce dependence on China, its largest trading...