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
The agreement significantly strengthens the investment partnership between the two countries. New Zealand has committed to facilitate investments of USD 20 billion into India over the next fifteen years, thereby supporting manufacturing, infrastructure, services, innovation and employment under India’s Make-in-India vision. Indian enterprises are also expected to benefit from their presence in New Zealand and access the wider Pacific Island markets.
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.
The negotiations were formally launched on 16 March 2025 during the meeting between Union Commerce and Industry Piyush Goyal and Minister for Trade and Investment of New Zealand Todd McClay.
“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,” Goyal said.
The FTA provides market access that enhances the competitiveness of India’s labour-intensive sectors, including 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 has secured commitments across a wide range of high-value sectors, including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment.
The FTA 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, strengthening people-to-people ties and expanding global exposure for Indian youth.
The FTA Opens Skilled Employment Pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years. This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade.
Establishment of dedicated Agri-Technology Action Plans on kiwifruit, apples and honey, focus on productivity enhancement, technology, research collaboration, quality improvement and value-chain development, to strengthen domestic capabilities and supporting income growth for Indian farmers.
In a post on X, New Zealand Prime Minister Chirstopher Luxon said the FTA reduced or removds tariffs on 95% of the country’s exports to India.
“It’s forecast that New Zealand exports to India could increase $1.1 billion to $1.3 billion per year over the coming two decades,” he said.
The FTA ensures enhanced market access, deeper investment flows, numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth, Prime Minister Narendra Modi said in a post on X, after his telephone conversation with Luxon.
