New Delhi: In a landmark move to strengthen economic ties, India and New Zealand signed a comprehensive Free Trade Agreement (FTA) on April 27, marking a significant milestone in bilateral relations. The deal was finalised after negotiations between New Delhi and Wellington concluded in December 2025.
The agreement spans 20 chapters, covering areas such as trade in goods, trade remedies, dispute resolution, and legal frameworks, making it one of the most comprehensive trade pacts signed by India in recent years.
Fast-Tracked Deal Reflects Strong Ties
Union Commerce and Industry Minister Piyush Goyal highlighted that the agreement was concluded in just nine months, calling it a reflection of “deep trust and shared ambition” between the two nations.
He added that the FTA aligns with Narendra Modi’s vision of Viksit Bharat 2047 and marks the seventh such agreement signed under his tenure in the past four years.
Key Highlights of the India–New Zealand FTA
- $20 Billion Investment Commitment: New Zealand has pledged to invest $20 billion in India over the next 15 years.
- Zero Duty on Indian Exports: 100% of duties on Indian exports to New Zealand will be eliminated, boosting sectors like textiles, leather, plastics, and engineering goods.
- Market Access for New Zealand Goods: India will open 70.03% of its tariff lines, covering about 95% of current imports from New Zealand.
- Boost for Professionals: The agreement introduces at least 5,000 “Temporary Employment Entry Visas” annually for Indian professionals in skilled sectors, allowing stays of up to three years.
- Wine and Spirits Trade: Duty concessions will be gradually reduced over 10 years for wines and spirits traded between both nations.
- Agriculture Cooperation: The pact includes collaboration in agriculture, including support for Indian farmers in cultivating kiwi and apples, and enhancing honey production.
Trade Opportunities for Both Nations
New Zealand is expected to benefit from increased exports of wool, wine, timber, coal, and fruits such as avocados and blueberries. Meanwhile, Indian exporters stand to gain significantly from duty-free access to the New Zealand market, especially in labour-intensive sectors.
Strengthening Global Economic Engagement
The agreement underscores India’s growing engagement with developed economies and signals a push towards expanding global trade partnerships. It is expected to enhance bilateral trade, create employment opportunities, and deepen cooperation across multiple sectors.
