New Delhi: India and New Zealand on Monday announced the conclusion of negotiations for a landmark Free Trade Agreement (FTA), marking one of India’s fastest trade deals with a developed economy. The talks, which began in June 2024, were completed in just nine months, with negotiations concluding in March 2025.
Launched in March 2025, the agreement provides zero-duty market access for 100 per cent of Indian exports to New Zealand. In return, India will open 70 per cent of its tariff lines, covering about 95 per cent of bilateral trade. The government described the pact as a people-centric, jobs-driven partnership aligned with India’s Viksit Bharat 2047 vision.
Commerce and Industry Minister Piyush Goyal said the FTA focuses on building trade around people and creating opportunities for farmers, entrepreneurs, students, women and innovators. He added that the agreement would boost agricultural productivity, farmer incomes and exports, while opening new avenues for Indian youth to learn, work and grow globally.
Commerce Secretary Rajesh Agrawal termed the pact a new-generation trade agreement built on tariffs, agriculture, investment and talent mobility, with complementarity at its core. He said India’s strengths in labour-intensive manufacturing and services would expand exports and employment, while New Zealand would gain predictable access to India’s large and growing market.
New Zealand is a high-income, trade-oriented economy with global imports of about US$47 billion and exports of US$42 billion in 2024. It hosts a strong Indian diaspora of nearly 300,000 people, around 5 per cent of its population, and has foreign investments worth over US$422 billion as of March 2025. Bilateral trade in goods and services between India and New Zealand reached US$2.4 billion in 2024, with merchandise trade rising sharply by 49 per cent in 2024–25.
Under the FTA, New Zealand will grant 100 per cent duty-free access across all tariff lines, covering all of India’s current exports. This is expected to significantly enhance the competitiveness of Indian products in sectors such as textiles, apparel, leather, engineering goods, pharmaceuticals, chemicals and agri-processed products. Earlier, several Indian exports faced tariffs of up to 10 per cent in the New Zealand market.
India, meanwhile, will gradually reduce its average tariff on New Zealand imports from 16.2 per cent to 9.06 per cent over 10 years. Around 30 per cent of sensitive products, including dairy, certain animal and vegetable products, sugar, metals and gems, have been excluded to protect domestic farmers and industry. Tariff rate quotas and phased reductions have also been built in as safeguards.
The agreement delivers significant gains across agriculture, industry, services and mobility. Action plans for kiwifruit, apples and manuka honey aim to improve quality, productivity and farmer incomes through centres of excellence and sustainable practices. Imports of raw materials such as wooden logs and metal scrap are expected to support Indian manufacturing.
In services, the FTA opens 118 sectors and strengthens cooperation in health and traditional medicine. Indian students will be eligible for post-study work visas of up to four years, while 5,000 skilled professionals and 1,000 young people annually will be able to access temporary employment or working holiday visas, boosting people-to-people ties.
The government believes the pact will give Indian companies a gateway not only to New Zealand but also to the wider Pacific region, while helping address labour shortages through skilled and semi-skilled workforce mobility. It also lays the foundation for future recognition of Indian traditional medicine and deeper strategic ties.
Trade experts welcomed the agreement but noted that its real impact would depend on effective implementation. Global Trade Research Initiative founder Ajay Srivastav said the FTA should be used as a framework to strengthen supply chains, expand services trade, deepen education and skills partnerships and leverage the Indian diaspora, with the aim of doubling bilateral trade by 2030.
Federation of Indian Export Organisations President S C Ralhan said the agreement would benefit farmers, MSMEs, workers, artisans, women-led enterprises and youth, particularly in labour-intensive sectors such as textiles, apparel, leather and footwear. He described the zero-duty access across all tariff lines as a historic achievement that would boost competitiveness and employment.
The India–New Zealand FTA will be formally signed after both countries complete their domestic processes, with the agreement expected to come into force later in 2025.
