India New Zealand FTA: New Zealand Prime Minister Christopher Luxon has described the Free Trade Agreement with India as a landmark deal, noting that it means
more jobs, higher incomes and more exports from Indian markets. "We said we'd secure a Free Trade Agreement with India in our first term, and we've delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers. Fixing the Basics. Building the Future," the New Zealand Prime Minister said in a post on X.
We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers.
— Christopher Luxon (@chrisluxonmp) December 27, 2025
Fixing the Basics. Building the Future.
Announcement and Key Benefits
India and New Zealand on Monday announced the conclusion of free trade agreement negotiations, a move aimed at boosting bilateral trade in goods and investments.
The talks started in May this year.
New Zealand Prime Minister Christopher Luxon said on Monday that negotiations for a free trade agreement with India have been concluded. The free trade agreement (FTA) reduces or removes tariffs on 95 per cent of our exports to India.
It's forecast that New Zealand exports to India could increase from USD 1.1 billion to USD 1.3 billion per year over the coming two decades, Luxon had said in a social media post.
Current Bilateral Trade Overview
In FY25, the bilateral trade was about USD 1.3 billion (India's exports were USD 711.1 million and imports were USD 587.1 million).
New Zealand's average import tariff is just 2.3 per cent, compared with India's 17.8 per cent, and 58.3 per cent of New Zealand's tariff lines are already duty-free.
India's export basket to New Zealand is broad-based but concentrated in fuels, textiles, and pharmaceuticals.
Services Trade Between the Two Nations
In FY24, India's services exports to New Zealand stood at USD 214.1 million, while New Zealand's services exports to India totaled USD 456.5 million.
India's strengths lie in IT and software services, telecommunications support, healthcare and financial services.
New Zealand's services exports are led by education -- driven by Indian students -- followed by tourism, fintech solutions, and specialised aviation training.
Importance of FTAs
Free Trade Agreements are designed to open new opportunities for Indian businesses, farmers, students, and professionals, while also strengthening India’s role in global value chains. It is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics.
India’s FTA with other countries enhances competitiveness by reducing or eliminating tariffs and by improving market access for goods and services. They strengthen intellectual property protection, enable participation in standards setting and government procurement, and ensure fair treatment for investors. Overall, FTAs create a more predictable and level playing field for businesses operating across borders.
