New Delhi, April 27 (ANI): External Affairs Minister S. Jaishankar on Monday described the signing of the India-New Zealand Free Trade Agreement (FTA) as a “landmark” in bilateral relations, underlining its broad economic and social benefits.
In a post on X, Jaishankar said the pact will strengthen economic partnerships, boost investments and improve market access for Indian exporters. “The signing of India-New Zealand Free Trade Agreement today is a landmark for our ties. The FTA will forge stronger economic partnerships, boost investments and enhance market access for our exporters,” he wrote, adding that it “will also unlock new opportunities for innovators, entrepreneurs, farmers, MSMEs, women and youth.”
The FTA was signed at Bharat Mandapam in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay, in the presence of senior officials, business leaders and industry stakeholders. New Zealand has committed to investing about USD 20 billion in India over the next 15 years, signalling long-term confidence in India’s growth.
Launched on March 16, 2025 after a meeting between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, the pact was finalised on December 22, 2025 following five rounds of negotiations completed in nine months. Officials say it is expected to boost exports, create jobs, encourage new business partnerships and strengthen cooperation between the two democracies across the Indo-Pacific.
Under the agreement, New Zealand will immediately eliminate tariffs on a wide range of products, removing duties of around 10 per cent that currently apply to several Indian exports such as textiles, leather goods, carpets, ceramics and auto components, thereby enhancing competitiveness. Agricultural exports including tea, coffee and spices are also set to benefit.
India has offered market access on nearly 70 per cent of tariff lines while keeping about 30 per cent excluded. Tariffs will be scrapped immediately on roughly 30 per cent of goods, with over one-third seeing gradual reductions; some items will face limited cuts or be subject to quota-based concessions. Sensitive sectors excluded include dairy (milk, cheese, butter, yoghurt), certain animal products, sugar, oils, gems and jewellery, and select metals. Apples, kiwifruit and manuka honey will enter under tariff rate quotas alongside cooperation in technology and productivity.
In services, New Zealand has opened more than 100 sectors to Indian providers; India will liberalise a similar number for New Zealand, with limited preferential treatment. The agreement also eases mobility: caps on Indian students are removed, post-study work opportunities in STEM fields are extended, and up to 5,000 visas will be available at any time for skilled Indian professionals across sectors such as IT, healthcare, education and construction. (ANI)
