“The India–New Zealand Free Trade Agreement marks a defining milestone in India’s engagement with the developed world,” Goyal said.
This is India’s 9th Agreement in the past few years- with 38 developed countries. At the heart of the agreement is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services. The investment commitment of USD 20 billion from New Zealand signals strong confidence in India’s growth story. It places special emphasis on strengthening MSMEs, fostering innovation and enabling women-led enterprises to thrive in global markets, he added.
The India–New Zealand Free Trade Agreement was concluded in nine months, Goyal added.
He noted that India was signing its seventh FTA in the last three-and-a-half years, with plans for agreements with the European Union and the United States, taking the total to nine FTAs with 38 advanced economies, covering nearly 65–70 per cent of global GDP.
He also highlighted expected USD 20 billion investment inflows under the agreement and said that New Zealand had opened access in 118 sectors with Most Favoured Nation (MFN) commitments in 139 sectors.
The negotiations were officially launched on 16 March on the eve of the bilateral meeting of Prime Minister Narendra Modi and the Prime Minister of New Zealand Christopher Luxon. Through five formal rounds of negotiations and several intersessions, both sides concluded the agreement on 22 December 2025.
The merchandise bilateral trade between Oceania and India stood at approximately USD 26 billion in 2024-25. New Zealand is India’s second-largest trading partner in the Oceania region, with bilateral trade valued at around USD 1.3 billion.
The FTA provides duty-free access for 100 per cent of India’s exports to New Zealand, covering all tariff lines, and is expected to significantly boost MSMEs and employment by enhancing competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods and processed foods.
Earlier, New Zealand maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles and auto components.
India also secures duty-free inputs for its manufacturing sector, including wooden logs, coking coal and waste and scraps of metals, lowering production costs and enhancing the global competitiveness of Indian industry.
India has offered tariff liberalisation on 70.03 per cent of tariff lines covering 95 per cent of bilateral trade value, while keeping 97 per cent of tariff lines in exclusionto protect India’s sensitive sectors.
The products that are kept in exclusion are mainly-Dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), agricultural products (onions, chana, peas, corn, almonds among others.
“The FTA strengthens economic ties between two vibrant democracies, unlocking opportunities for farmers, artisans, youth, entrepreneurs, women and MSMEs. It will create opportunities for farmers, youth, MSMEs and entrepreneurs,” Prime Minister NarendrrrModi said in a post on X.
For more details: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2255984®=3&lang=1
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2255984®=3&lang=1
