New Delhi, Dec 22 (UNI) India and New Zealand have concluded negotiations on a landmark Free Trade Agreement (FTA), marking a major step forward in strengthening bilateral economic ties and expanding cooperation across trade, services, investment and people-to-people engagement.
Finalised in a record time after being launched in March 2025, the agreement reflects India’s growing role in shaping modern, balanced and inclusive trade partnerships in the Indo-Pacific region.
The agreement provides India with zero-duty access for 100 per cent of its export lines to New Zealand, creating significant opportunities for labour-intensive and value-driven sectors. Industries such as textiles, leather, footwear, engineering goods, marine products, handicrafts, gems and jewellery are expected to see enhanced market access, boosting exports, employment and income generation, particularly for MSMEs, artisans and young entrepreneurs.
A major highlight of the pact is the comprehensive coverage of the services sector. New Zealand has offered its best-ever commitments, opening access across 118 services sectors, while India has secured most-favoured-nation treatment in a large number of sub-sectors. This is expected to benefit Indian IT professionals, consultants, engineers, educators, healthcare workers and tourism service providers by enabling smoother entry and operation in the New Zealand market.
The agreement places strong emphasis on talent mobility and education. Indian students will gain extended post-study work opportunities, with longer durations for STEM graduates and doctoral scholars. In addition, a new temporary employment entry pathway will allow thousands of skilled Indian professionals to work in high-demand sectors such as information technology, engineering, healthcare, education and traditional medicine. Special provisions have also been introduced to encourage youth exchange through work-and-holiday arrangements.
Investment cooperation forms another critical pillar of the FTA. New Zealand has expressed intent to facilitate long-term investments into India over the next 15 years, supporting sectors such as manufacturing, infrastructure, innovation and services. These investments are aligned with India’s domestic manufacturing push and are expected to generate jobs while strengthening supply chains.
Agriculture cooperation has been designed to focus on productivity and value enhancement rather than market disruption. The two countries will establish centres of excellence for select horticultural products such as apples, kiwifruit and honey, aimed at improving yields, quality and farmer incomes through technology sharing and best practices. At the same time, India has protected sensitive sectors including dairy, onions, spices and edible oils to safeguard domestic interests.
The agreement also introduces measures to ease regulatory processes, particularly in pharmaceuticals and medical devices, enabling faster approvals and reducing compliance burdens for Indian exporters. Protection of Indian geographical indications has been strengthened, supporting traditional products and heritage industries.
Cooperation has been expanded to sectors such as AYUSH, tourism, fisheries, audio-visual services, traditional knowledge systems and cultural exchanges.
Bilateral trade between India and New Zealand has been steadily growing, and the FTA provides a stable and predictable framework to significantly scale this relationship. Officials view the agreement as a forward-looking, people-centric pact that balances economic growth with strategic priorities.
Described as one of the most comprehensive trade agreements concluded by India in recent times, the India–New Zealand FTA underscores the country’s commitment to deepening global partnerships, enhancing competitiveness and creating opportunities for its workforce, businesses and youth, in line with the vision of a developed India by 2047.
Commerce Minister Piyush Goyal on Monday said, “Today, this Free Trade Agreement is about building trade around people and launching opportunities for our farmers, for our entrepreneurs, for our students, for our women and for our innovators.”
The Minister was addressing here on concluding the India-New Zealand FTA agreement.
“It is a historic and landmark FTA because it concluded not only in record time of nine but more importantly it has two-three interesting elements: FTA led entirely by a women-led FTA team and it is third FTA with five eyes nation, Australia, UK and now New Zealand,” Goyal added.
