India–New Zealand FTA signed, unlocking trade and investment

India and New Zealand have signed a Free Trade Agreement (FTA) at Bharat Mandapam in New Delhi, marking a major step in strengthening bilateral economic ties. The agreement was signed by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.

The FTA provides duty-free access for 100 per cent of India’s exports to New Zealand across all tariff lines, aimed at boosting labour-intensive sectors such as textiles, leather, footwear, engineering goods and processed foods. In return, India has offered tariff liberalisation on about 70 per cent of tariff lines, covering 95 per cent of bilateral trade value, while excluding sensitive sectors such as dairy and key agricultural products to protect domestic industries.

The agreement is expected to increase trade and investment flows by improving market access, reducing barriers and creating predictable rules. It includes a commitment of USD 20 billion in investment from New Zealand into India, targeting agriculture, manufacturing, infrastructure, start-ups and emerging technologies.

New Zealand has also provided market access commitments across 118 services sectors, including computer-related, professional, telecom, construction, tourism and financial services, along with Most-Favoured Nation commitments in around 139 sub-sectors. The FTA introduces a Temporary Employment Entry visa pathway with a quota of 5,000 for Indian professionals and allows a stay of up to three years.

The pact enhances student mobility by removing numerical caps and offering post-study work opportunities of up to three years for STEM graduates and up to four years for doctoral scholars. It also introduces working holiday visas for 1,000 young Indians annually.

In agriculture, the agreement includes productivity partnerships, centres of excellence and tariff rate quotas for selected imports such as apples, kiwifruit and Manuka honey, supported by minimum import prices and safeguards to protect domestic farmers.

The FTA also facilitates faster market entry for pharmaceuticals and medical devices by recognising inspection reports from international regulators, reducing compliance costs and expediting approvals.

New Zealand has committed to amending its geographical indications law within 18 months to enable registration of Indian products beyond wines and spirits, supporting rural artisans and traditional industries.

The agreement includes provisions on customs procedures, trade facilitation and faster cargo clearance, with standard shipments to be cleared within 48 hours and express or perishable goods within 24 hours. It also covers sanitary and phytosanitary measures and technical standards to ensure smoother trade while maintaining safety norms.

Negotiations for the FTA began in March 2025 and concluded in December 2025 after five rounds of talks, making it one of the fastest agreements concluded by India with a developed country.

According to New Zealand Trade and Investment Minister Todd McClay, the agreement marks a “once-in-a-generation” opportunity to expand trade, create jobs and deepen economic engagement. New Zealand Prime Minister Christopher Luxon described it as a historic milestone that will unlock new opportunities for trade, investment and innovation.

India’s Commerce Minister Piyush Goyal said the agreement reflects India’s focus on expanding global economic partnerships and will support farmers, MSMEs, women, youth and entrepreneurs.

Bilateral trade between India and New Zealand stood at around USD 1.3 billion in 2024-25, with total trade in goods and services reaching USD 2.4 billion in 2024. With the FTA in place, trade is expected to grow further through enhanced market access and deeper economic cooperation.

The agreement will come into force after completion of domestic procedures and ratification by both countries.