India and New Zealand have announced the conclusion of a comprehensive and forward-looking Free Trade Agreement (FTA), marking a significant milestone in India’s economic engagement with the Indo-Pacific region. The pact, one of India’s fastest-negotiated FTAs with a developed economy, aligns with the national vision of Viksit Bharat 2047 and is expected to act as a catalyst for trade, investment and people-to-people ties.
Formal negotiations began on March 16, 2025, following discussions between Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. The agreement was finalised within nine months after five formal rounds of talks and multiple intersessional meetings.
Under the FTA, New Zealand will provide zero-duty market access on 100 per cent of its tariff lines, giving Indian exporters duty-free access across all products. India has offered tariff liberalisation on around 70 per cent of tariff lines, covering nearly 95 per cent of bilateral trade, while excluding sensitive sectors such as dairy, sugar, edible oils, coffee, spices and onions to protect domestic farmers and industry.
The agreement is expected to boost India’s labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, automobiles, pharmaceuticals and agriculture. Indian manufacturers will also gain from duty-free access to critical raw materials such as coking coal, timber logs and metal scrap.
In services, India has secured New Zealand’s most ambitious commitments to date, covering 118 sectors and extending MFN treatment across about 139 sub-sectors. This opens opportunities in IT, professional services, telecom, construction, tourism, audio-visual services and other high-skill areas.
A strong focus has been placed on mobility and education. Indian students will benefit from post-study work visas of up to three years for STEM graduates and up to four years for doctoral scholars. A dedicated temporary employment visa pathway for 5,000 professionals and 1,000 work-and-holiday visas has also been created.
New Zealand has committed to facilitating investments worth USD 20 billion in India over 15 years, supporting manufacturing, infrastructure, innovation and employment. With bilateral trade currently at about USD 2.4 billion, officials said the FTA provides a stable framework to unlock the partnership’s full potential and deepen a people-centric, jobs-driven relationship.
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