India–New Zealand FTA Negotiations Conclude After Breakthrough Talks, with both countries finalising a comprehensive, balanced and forward-looking Free Trade Agreement (FTA) under the visionary leadership of Hon’ble Prime Minister Narendra Modi. The conclusion of this agreement marks a major economic and strategic milestone in India’s engagement with the Indo-Pacific region, strengthening bilateral ties while opening new pathways for trade, investment and people-to-people cooperation.
The India–New Zealand Free Trade Agreement is among India’s fastest-concluded FTAs and is closely aligned with the national vision of Viksit Bharat 2047. Negotiations for the agreement were formally launched on 16 March 2025 during a meeting between Hon’ble Minister of Commerce and Industry Piyush Goyal and Hon’ble Minister for Trade and Investment of New Zealand Todd McClay. The negotiations progressed through five formal rounds, supported by intensive in-person and virtual intersessional discussions, reflecting strong political will and mutual commitment from both sides. The resulting agreement establishes a high-quality economic partnership focused on employment generation, skill mobility, trade- and investment-led growth, innovation in agricultural productivity and enhanced participation of MSMEs, thereby strengthening long-term economic resilience.
Speaking on the conclusion of the India–New Zealand FTA, Minister for Commerce and Industry Piyush Goyal said, “Today this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage”
A key feature of the India–New Zealand FTA is the elimination of tariffs on 100 per cent of tariff lines, granting duty-free access for all Indian exports. This enhanced market access significantly improves the competitiveness of India’s labour-intensive sectors, including textiles and apparel, leather and footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles. The agreement directly supports Indian workers, artisans, women, youth and MSMEs while enabling deeper integration into global value chains.
In services, the India–New Zealand FTA delivers New Zealand’s most ambitious and comprehensive services offer under any of its FTAs to date. India has secured meaningful commitments across high-value sectors such as IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services. These commitments are expected to generate new opportunities for Indian service providers and promote high-skill employment.
Describing the agreement as a new-generation trade pact, Commerce Secretary Rajesh Agrawal highlighted that the India–New Zealand FTA is built around tariffs, agricultural productivity, investment and talent, with complementarity at its core. He noted that while India’s strengths lie in labour-intensive manufacturing and services exports, New Zealand gains deeper and more predictable access to India’s large and growing market. Enhanced mobility of students, professionals and skilled workers further strengthens this partnership.
The India–New Zealand FTA introduces a future-ready mobility framework that positions India as a reliable supplier of skilled and semi-skilled talent. The agreement provides improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework. In addition, a new Temporary Employment Entry Visa pathway allows up to 5,000 Indian professionals at any given time to work in New Zealand for up to three years, covering sectors such as IT, engineering, healthcare, education, construction, as well as traditional professions including AYUSH practitioners, yoga instructors, chefs and music teachers.
Agriculture cooperation is another important pillar of the agreement. Dedicated Agri-Technology Action Plans for kiwifruit, apples and honey will focus on productivity enhancement, technology adoption, research collaboration, quality improvement and value-chain development. These initiatives include the establishment of Centres of Excellence, improved planting material, capacity building for growers, and technical support for orchard management, post-harvest practices, supply chains and food safety. Targeted projects for apple growers and sustainable beekeeping are expected to enhance production standards and boost farmers’ incomes.
The India–New Zealand FTA also significantly strengthens the bilateral investment partnership. New Zealand has committed to facilitating investments of USD 20 billion into India over the next fifteen years, supporting manufacturing, infrastructure, services, innovation and employment under the Make in India vision. Indian enterprises are similarly expected to benefit from expanded opportunities in New Zealand and access to wider Pacific Island markets.
Further, the agreement provides a boost to India’s pharmaceutical and medical devices sectors through faster regulatory access, including acceptance of GMP and GCP inspection reports from comparable international regulators. Commitments on Geographical Indications, cooperation in AYUSH, culture, fisheries, audiovisual tourism, forestry, horticulture and traditional knowledge systems further deepen the partnership. By addressing non-tariff barriers through regulatory cooperation, streamlined customs procedures and strengthened SPS and TBT disciplines, the FTA ensures that tariff concessions translate into meaningful market access.
With bilateral trade already showing steady momentum, the India–New Zealand Free Trade Agreement provides a stable, predictable and future-oriented framework to unlock the full potential of this growing economic relationship, reinforcing India’s journey towards becoming a globally competitive, inclusive and resilient economy under Viksit Bharat 2047.
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