India and New Zealand have signed a comprehensive, forward-looking Free Trade Agreement (FTA) under the visionary leadership of PM Modi, marking a major milestone in India’s Indo-Pacific engagement and economic diplomacy. This agreement, one of India’s fastest-concluded FTAs, aligns with the vision of Viksit Bharat 2047.
Negotiations began on 16 March 2025 between India’s Commerce Minister Shri Piyush Goyal and New Zealand’s Minister for Trade and Investment, Mr. Todd McClay, and concluded through five formal rounds and extensive intersession discussions. The FTA establishes a high-quality partnership that drives trade, investment, skill mobility, agricultural innovation, and MSME participation, strengthening long-term economic resilience.
The agreement provides duty-free access to 100% of New Zealand’s tariff lines, boosting India’s labour-intensive sectors including textiles, apparel, leather, marine products, handicrafts, engineering goods, and automobiles. It also secures New Zealand’s most ambitious services offer, opening opportunities in IT, professional services, education, tourism, financial services, construction, and other high-value sectors.
A future-ready mobility framework enables Indian students, professionals, and skilled workers to access New Zealand through post-study work opportunities, Working Holiday visas, and a new Temporary Employment Entry Visa covering 5,000 skilled positions in priority sectors like IT, engineering, healthcare, AYUSH, and yoga.
Agricultural collaboration focuses on kiwifruit, apples, and honey, enhancing productivity, research, quality, and farmer incomes. Investment commitments of USD 20 billion over 15 years will support India’s manufacturing, services, innovation, and infrastructure sectors, while faster regulatory approvals facilitate pharmaceutical and medical device exports.
The FTA also strengthens cooperation in AYUSH, culture, tourism, fisheries, horticulture, and intellectual property protection, while addressing non-tariff barriers and enhancing regulatory transparency. Bilateral trade has steadily grown, with total trade reaching USD 2.4 billion in 2024.
The India–New Zealand FTA represents a next-generation trade partnership, advancing India’s journey toward a globally competitive, inclusive, and resilient economy under Viksit Bharat 2047.
