India’s growing footprint in global trade received a major boost with the conclusion of a comprehensive Free Trade Agreement (FTA) with New Zealand, Commerce
and Industry Minister Piyush Goyal said, underlining that it is India’s 7th FTA with a developed economy and reflects the country’s rising importance in world politics and commerce. Calling the agreement 'landmark and forward-looking,' Goyal said India is rapidly expanding trade ties by signing agreements with complementary economies, aiming to more than double bilateral trade within the next 5 years. The India–New Zealand FTA also becomes India’s third trade pact with a 5-Eyes nation, after Australia and the UK. The agreement was concluded under the leadership of Prime Minister Narendra Modi and is among India’s fastest-negotiated FTAs, aligned with the vision of Viksit Bharat 2047. Formal negotiations were launched on 16 March 2025 and wrapped up after 5 intensive rounds of talks. Speaking on the development, Goyal said the FTA goes beyond goods and focuses on people-centric growth. “This agreement builds trade around opportunities for farmers, entrepreneurs, students, women and innovators, while opening global pathways for India’s youth,” he said.'
Duty-free access for Indian exports
A key highlight of the pact is the elimination of tariffs on 100 per cent of New Zealand’s tariff lines, granting duty-free access to all Indian exports. This is expected to significantly benefit labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, supporting MSMEs and job creation.Major push for services and talent mobility
India has secured New Zealand’s most ambitious services commitments to date, covering IT and IT-enabled services, professional services, education, financial services, tourism, construction and business services. The agreement also creates a future-ready mobility framework, improving entry and stay provisions for Indian students, professionals and youth.A new Temporary Employment Entry Visa pathway will allow up to five thousand Indian professionals at any given time to work in New Zealand for up to three years. This includes roles across IT, engineering, healthcare, education and construction, along with professions such as yoga instructors, AYUSH practitioners, chefs and music teachers.
Boost for agriculture, pharma and investment
The FTA includes dedicated agri-technology action plans for kiwifruit, apples and honey, focusing on productivity, research collaboration and value-chain development to support Indian farmers’ incomes. It also streamlines regulatory processes for pharmaceuticals and medical devices by recognising inspection reports from trusted global regulators, reducing compliance costs and speeding up approvals.On investments, New Zealand has committed to facilitating USD 20 billion into India over the next fifteen years, supporting manufacturing, infrastructure, services and innovation under the Make in India initiative.
Commerce Secretary Rajesh Agrawal described the pact as a “new-generation trade agreement built on tariffs, agriculture, investment and talent,” noting that both economies stand to gain from their complementary strengths in renewable energy, mining, skilling and education.
With bilateral trade in goods and services at around USD 2.4 billion in 2024, the FTA provides a stable framework to unlock long-term growth. Goyal added that India will soon launch discussions on terms of reference with Canada and is at an advanced stage of trade talks with the United States, signalling an accelerated push in India’s global trade strategy.
