India - New Zealand FTA: A new Trade Boost

SYNOPSIS

The landmark India-New Zealand FTA grants zero-duty access to all Indian exports and secures $20 billion in investment. It boosts trade, MSMEs, and mobility for 5,000 professionals and students while strictly protecting sensitive sectors like dairy and agriculture.

India New Zealand Trade

India and New Zealand have reached a landmark Free Trade Agreement that promises to transform economic ties between both the countries and accelerate growth in trade, investment and jobs. After just nine months of negotiations, the deal was concluded in December 2025, making one of India’s fastest concluded trade pacts with a developed economy. Leaders from both sides are confident it will boost bilateral engagement and create new opportunities in multiple sectors.

One of the biggest highlights of the agreement is the zero fusty access granted to Indian exports to New Zealand. Under the pact, all Indian goods will enter the Kiwi market duty free. Removing tariffs that previously acted as barriers for many key export sectors. This is expected to benefit industries like textiles, apparel, leather, footwear, gems and jewellery, engineering goods, pharmaceuticals and processed foods.

For New Zealand exporters India is now an even more attractive destination. The deal eliminates or sharply reduces tariffs on 95 percent of New Zealand’s exports to India, Items such as sheep meat, wool, coal, forestry products will see duty free access immediately or over a phased schedule, helping New Zealand producers compete more effectively against other markets.

At the same time, India has chosen to protect some sensitive domestic sectors, especially dairy products. These areas have been kept out of tariff reductions to safeguard the local farmers and small producers. This also shows that while India is opening its markets, it is still taking care of its local interests.

The agreement goes beyond goods and opens up trade in services and mobility for professionals. Indian service providers will gain access across more than one hundred sectors in New Zealand, including information technology, professional services, tourism and education. The pact also introduces pathways for skilled Indian workers and students, with work and study opportunities that support people to people links and build long term engagement between the two economies. As a start, New Zealand has also announced special visa access for upto 5000 Indian professionals.

Investment flows are set to receive a boost too. New Zealand has pledged approximately 20 billion dollars in investments into India over the next 15 years. This commitment demonstrates a confidence in India’s growth story and will help to deepen the economic cooperation across manufacturing, infrastructure and innovation sectors.

The Economists and policymakers say that this FTA aligns with India’s broader strategy to diversify trade partners and strengthen the integration into global value chains. The FTA also supports the national vision of Viksit Bharat 2047, by expanding the market access for Indian firms and securing long term economic partnerships. With lower trade barriers, better service access and greater movement of skilled professionals, the India New Zealand FTA opens a new phase of economic cooperation and shared growth between the two countries.

Vishwajeet Galande