India–New Zealand Conclude Landmark FTA, Deepening Indo-Pacific Economic Ties

The agreement was finalised following five formal negotiation rounds, supported by continuous and intensive in-person and virtual intersessional engagements.

India and New Zealand have concluded a comprehensive, balanced, and forward-looking Free Trade Agreement (FTA) under the visionary leadership of Prime Minister Shri Narendra Modi, marking a major economic and strategic milestone in India’s engagement with the Indo-Pacific region. The agreement aligns closely with India’s long-term national vision of Viksit Bharat 2047 and represents one of the fastest-concluded FTAs negotiated by India to date.

Swift Negotiations, Strategic Outcomes

The negotiations were formally launched on 16 March 2025 during a meeting between Union Minister of Commerce and Industry Shri Piyush Goyal and New Zealand’s Minister for Trade and Investment Mr Todd McClay. The agreement was finalised following five formal negotiation rounds, supported by continuous and intensive in-person and virtual intersessional engagements.

The resulting FTA establishes a high-quality economic partnership designed to promote employment generation, facilitate skill mobility, boost trade and investment-led growth, enhance agricultural productivity through innovation, and strengthen MSME participation—all contributing to long-term economic resilience.

People-Centric Trade Vision

Speaking on the conclusion of the agreement, Shri Piyush Goyal described the FTA as a people-first trade framework. He noted that the agreement is aimed at creating opportunities for farmers, entrepreneurs, students, women, youth, and innovators, while boosting farmer incomes through modern agricultural practices and enabling Indian businesses to integrate more deeply into regional and global value chains.

He also highlighted that the FTA opens global learning and working opportunities for Indian youth, reinforcing India’s human capital advantage.

Full Tariff Elimination for Indian Exports

A key highlight of the agreement is New Zealand’s elimination of tariffs on 100% of its tariff lines, providing duty-free access for all Indian exports. This significantly enhances the competitiveness of India’s labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles.

The move is expected to directly benefit Indian workers, artisans, MSMEs, women, and youth, while embedding Indian manufacturing more firmly into global value chains.

Ambitious Services and Talent Mobility Framework

The FTA delivers New Zealand’s most ambitious services commitments in any FTA so far. India has secured market access across high-value sectors such as IT and IT-enabled services, professional services, education, financial services, tourism, construction, and other business services, opening up significant opportunities for Indian service providers and high-skilled employment.

Commerce Secretary Shri Rajesh Agrawal described the agreement as a “new-generation trade pact” built on the pillars of tariffs, agriculture, investment, and talent mobility. He emphasised the complementarity between India’s export strengths and New Zealand’s predictable access to India’s large and growing market.

Expanded Pathways for Indian Professionals and Students

A future-ready mobility framework positions India as a key supplier of skilled and semi-skilled talent. The FTA introduces improved entry and stay provisions for Indian professionals, students, and youth, including work opportunities during studies, post-study work options, dedicated visa arrangements, and a Working Holiday Visa framework.

A notable feature is the Temporary Employment Entry Visa pathway, which allows up to 5,000 Indian professionals at any given time to work in New Zealand for up to three years. This pathway covers professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, along with high-demand sectors like IT, engineering, healthcare, education, and construction, significantly strengthening services trade and workforce mobility.

Agriculture and Agri-Tech Collaboration

The agreement establishes dedicated Agri-Technology Action Plans for kiwifruit, apples, and honey, focusing on productivity enhancement, technology transfer, research collaboration, quality improvement, and value-chain development. These initiatives aim to strengthen domestic agricultural capabilities and support income growth for Indian farmers.

Cooperation will include Centres of Excellence, improved planting material, capacity building for growers, and technical support across orchard management, post-harvest practices, supply chains, and food safety. Targeted projects for apple cultivation and sustainable beekeeping are expected to raise production and quality standards.

Investment Boost and Make in India Push

The FTA significantly deepens the investment partnership between the two countries. New Zealand has committed to facilitate USD 20 billion in investments into India over the next 15 years, supporting manufacturing, infrastructure, services, innovation, and employment under the Make in India initiative. Indian enterprises are also expected to benefit from expanded operations in New Zealand and improved access to Pacific Island markets.

Gains for Pharma, Medical Devices and GIs

The agreement provides a major boost to pharmaceuticals and medical devices by enabling faster regulatory access through mutual acceptance of GMP and GCP inspection reports from comparable regulators, including the US FDA, EMA, and UK MHRA. This will reduce compliance costs, avoid duplicative inspections, and expedite approvals.

New Zealand has also committed to strengthening Geographical Indications (GI) protection, including amending its laws to facilitate registration of Indian wines, spirits, and other goods—benefits previously extended only to the European Union.

Wider Cooperation and Trade Facilitation

Beyond tariff liberalisation, the FTA includes robust provisions to address non-tariff barriers through enhanced regulatory cooperation, transparency, streamlined customs procedures, and strengthened Sanitary and Phyto-Sanitary (SPS) and Technical Barriers to Trade (TBT) disciplines. These measures ensure that tariff concessions translate into effective market access.

Cooperation has also been agreed in areas such as AYUSH, culture, fisheries, audio-visual tourism, forestry, horticulture, and traditional knowledge systems, promoting India’s wellness ecosystem and medical value travel globally.

Unlocking Untapped Trade Potential

India–New Zealand economic engagement has shown steady growth. Bilateral merchandise trade reached USD 1.3 billion in 2024–25, while total trade in goods and services stood at around USD 2.4 billion in 2024. Services trade alone touched USD 1.24 billion, led by travel, IT, and business services. The FTA provides a stable, predictable framework to unlock the full potential of this relationship.

A New-Generation Trade Partnership

As the third FTA concluded this year, the India–New Zealand Free Trade Agreement stands as a new-generation trade partnership, reinforcing India’s emergence as a globally competitive, inclusive, and resilient economy. It represents a decisive step towards realising the vision of Viksit Bharat 2047 while strengthening India’s leadership role in the Indo-Pacific economic architecture.