Prime Minister Narendra Modi on Monday underscored the economic and strategic significance of the India-New Zealand Free Trade Agreement (FTA), stating that the pact would eliminate tariffs on Indian exports, strengthen labour-intensive sectors, and create new avenues for students and skilled professionals while ensuring robust protection for sensitive domestic industries such as agriculture and dairy.
In a statement shared on X, Modi highlighted Commerce and Industry Minister Piyush Goyal’s detailed explanation of the agreement’s benefits, noting that the FTA is designed to bolster India’s micro, small and medium enterprises (MSMEs) and enhance the competitiveness of Indian goods in global markets.
“Union Minister Shri Piyush Goyal elaborates how the India–New Zealand FTA removes tariffs on Indian exports, boosting labour-intensive sectors and strengthening MSMEs, while ensuring that sectors like agriculture and dairy remain fully protected,” the Prime Minister said.
India and New Zealand have signed a landmark Free Trade Agreement (FTA), granting market access across 70.03% of tariff lines while keeping 29.97% under exclusion.
Describing the pact as transformative, New Zealand Prime Minister Christopher Luxon said the agreement marks a breakthrough after years of stalled efforts. “For decades, many believed it couldn’t be done. But today, that deal has been signed,” he said, calling it a “once-in-a-generation” opportunity for New Zealand exporters to access India’s 1.4 billion-strong market and a rapidly expanding economy.
According to the government, the agreement aims to provide a major push to sectors such as textiles, leather, engineering goods and other labour-intensive industries by improving market access and reducing trade barriers. Officials believe this will translate into higher exports, increased production, and job creation, particularly benefiting small businesses and rural economies.
At the same time, the government has sought to address long-standing concerns from farmers and dairy stakeholders by ensuring that these sensitive sectors remain insulated from import surges. “The interests of our farmers and dairy industry are fully safeguarded,” Goyal has emphasised in his outreach on the agreement, reiterating that no compromise has been made on India’s core agricultural priorities.
Beyond trade in goods, the FTA is expected to deepen cooperation in services, education, and investment.
The Prime Minister noted that the agreement would expand opportunities for Indian students and skilled professionals seeking to work or study in New Zealand, reflecting a broader push to integrate India’s talent pool with global markets. “The FTA also expands opportunities for students and skilled professionals, alongside support for agricultural productivity and investment commitments,” Modi said.
The pact is also seen as a step towards attracting greater investment flows and fostering collaboration in areas such as agri-technology, food processing, and innovation. Government sources indicate that provisions related to investment commitments and technology sharing could help enhance agricultural productivity in India, aligning with the broader goal of modernising the farm sector.
The India–New Zealand FTA comes amid New Delhi’s renewed focus on bilateral trade agreements as part of its strategy to diversify export markets and reduce dependence on any single region. In recent years, India has pursued similar agreements with countries including Australia and the UAE, signalling a shift towards more proactive trade diplomacy.
Experts say the balancing act between export promotion and domestic protection will be key to the agreement’s success. While industry bodies have welcomed the tariff reductions and expanded access to overseas markets, farmer groups have consistently demanded strong safeguards-a concern the government has sought to address through carefully negotiated exclusions and protections.
With negotiations nearing completion, the government has projected the FTA as a “win-win” framework that aligns economic growth with social safeguards.
As Modi’s remarks suggest, the agreement is being positioned not just as a trade deal, but as a broader platform for economic collaboration, skill mobility, and sustainable development between India and New Zealand.
