Commerce and Industry Minister Piyush Goyal on Monday said the India–New Zealand Free Trade Agreement (FTA) represents a new-generation trade partnership and a major step towards building a globally competitive, inclusive and resilient Indian economy in line with the vision of Viksit Bharat 2047.
He noted that this is the “third FTA concluded by India this year under the leadership of Prime Minister Narendra Modi, underscoring the country’s accelerated push for deeper global economic integration.
India and New Zealand have concluded a comprehensive, balanced and forward-looking FTA, marking a significant economic and strategic milestone in India’s engagement with the Indo-Pacific region.
The negotiations were formally launched on March 16, 2025, during talks between Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, and were concluded after five intensive negotiation rounds along with several in-person and virtual intersessional meetings.
The agreement stands out as one of India’s fastest-concluded FTAs and establishes a high-quality economic partnership focused on employment generation, skill mobility, innovation, MSME participation and long-term economic resilience.
Under the agreement, “New Zealand will eliminate tariffs on 100 per cent of its tariff lines, providing duty-free market access for all Indian exports.”
This is expected to significantly boost India’s labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains.
India, in turn, has offered “tariff liberalisation on about 70 per cent of tariff lines, covering nearly 95 per cent of bilateral trade, while protecting sensitive sectors including dairy, coffee, edible oils, sugar, spices and key agricultural products.”
The FTA also delivers New Zealand’s most ambitious services offer to India, covering 118 services sectors and around 139 sub-sectors, including IT and IT-enabled services, professional services, education, financial services, telecommunications, construction, tourism and audiovisual services.
A future-ready mobility framework will enhance opportunities for Indian students and professionals through post-study work visas of up to three years for STEM graduates and up to four years for doctoral scholars, along with dedicated quotas for 5,000 skilled professionals and 1,000 work and holiday visas.
In addition, New Zealand has committed to facilitating investments worth USD 20 billion in India over the next 15 years, supporting manufacturing, infrastructure, services and innovation under the Make in India initiative.
The agreement also promotes agricultural productivity through Centres of Excellence for apples, kiwifruit and honey, alongside safeguards for domestic farmers, and provides duty-free access for key manufacturing inputs such as wooden logs, coking coal and metal scrap. With bilateral trade in goods and services already touching around USD 2.4 billion, the FTA is expected to unlock the full potential of India–New Zealand economic ties and deepen people-to-people connections.
The FTA will provide boost to Pharma and Medical Devices through faster regulatory Access by enabling acceptance of GMP and GCP inspection reports from comparable regulators, including approvals by the US FDA, EMA, UK MHRA, and other comparable regulators.
“This will reduce duplicative inspections, lower compliance costs, and expedite product approvals, thereby facilitating the growth of India’s pharmaceutical and medical devices exports to New Zealand, Piyush Goyal said.
Commitment has been extended on Geographical Indications, including amendment of its law to facilitate the registration of India’s wines, spirits and ‘other goods’, a benefit that was accorded to the EU by New Zealand- to be completed under defined timelines.
Cooperation has been agreed in AYUSH, culture, fisheries, audio visual tourism, forestry, horticulture and traditional knowledge systems. The FTA promotes India’s AYUSH systems internationally, encourages medical value travel, and positions India as a global wellness hub.
Apart from tariff liberalisation, the FTA includes provisions to address non-tariff barriers through enhanced regulatory cooperation, transparency, and streamlined customs, Sanitary and Phyto-sanitary (SPS) measures and Technical Barriers to Trade disciplines. All systemic facilitations and fast-track mechanisms for imports that serve as inputs for our manufactured exports ensure that tariff concessions translate into effective and meaningful market access.
India–New Zealand economic engagement has shown steady momentum. Bilateral merchandise trade reached USD 1.3 billion in 2024–25, while total trade in goods and services stood at approximately USD 2.4 billion in 2024, with services trade alone reaching USD 1.24 billion, led by travel, IT, and business services. The FTA provides a stable and predictable framework to unlock the full potential of this relationship.
Commerce Secretary Rajesh Agrawal described the pact as “a new-generation trade agreement built on tariffs, agricultural productivity, investment, and talent.” He noted that the agreement aligns with India’s Viksit Bharat 2047 development vision and is the third FTA concluded by the country this year.
