More than four months after announcing the conclusion of negotiations on December 22, India and New Zealand will sign a free trade agreement on April 27 aimed at doubling bilateral trade. The pact, to be signed at Bharat Mandapam in the presence of Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, is expected to give Indian firms duty-free access to many New Zealand markets and attract about USD 20 billion of New Zealand investment into India over the next 15 years.
The agreement will remove or reduce tariffs on roughly 95% of New Zealand exports to India, covering items such as wool, coal, wood, wine, avocados and blueberries, while New Zealand will secure quota-based tariff reductions for kiwifruit and apples. New Zealand will also obtain duty-free access for products including sheep meat, wool, coal and most forestry and wood articles, along with concessions on kiwifruit, wine, some seafood, cherries, avocados, persimmons, bulk infant formula, Manuka honey and milk albumins.
India has protected several politically sensitive and domestic sectors by excluding them from concessions. There will be no duty cuts for dairy items (milk, cream, whey, yoghurt, cheese) and other products such as onions, chana, peas, corn, almonds, sugar, artificial honey, animal/vegetable/microbial fats and oils, arms and ammunition, gems and jewellery, copper and its products, and aluminium and articles. India also excluded spices, edible oils and rubber to safeguard farmers and domestic industry.
The pact aims to double bilateral trade to USD 5 billion within five years, helping Indian exporters diversify shipments into Oceania amid global uncertainties. Bilateral merchandise trade stood at USD 1.3 billion in 2024–25, while total trade in goods and services was about USD 2.4 billion in 2024; services alone reached USD 1.24 billion, led by travel, IT and business services.
On services and mobility, New Zealand will create a temporary employment entry visa pathway for Indian professionals in skilled occupations, with an annual quota of 5,000 visas and stays of up to three years. The pathway covers AYUSH practitioners, yoga instructors, Indian chefs, music teachers and high-demand sectors including IT, engineering, healthcare, education and construction, enhancing workforce mobility and services trade.
Cooperation in agriculture includes a dedicated Agri-Technology Action Plan for kiwifruit, apples and honey to help Indian farmers improve productivity and quality. Measures include centres of excellence, improved planting material, capacity building, technical support for orchard management, post-harvest practices, supply chain performance and food safety.
New Zealand has also committed to facilitate registration of India’s wines and spirits by amending its Geographical Indications (GI) law. Beyond tariff liberalisation, the pact addresses non-tariff barriers through enhanced regulatory cooperation and streamlined customs, sanitary and phytosanitary measures and technical barriers to trade disciplines.
India’s pharmaceutical and medical devices sector will gain faster regulatory access in New Zealand through acceptance of GMP and GCP inspection reports from comparable regulators and approvals by agencies such as the US FDA, EMA and UK MHRA. This will reduce duplicate inspections, lower compliance costs and speed approvals, supporting growth in exports of Indian pharma and medical devices.
Under the current NDA government, India has finalised or implemented several FTAs: UAE (implemented May 2022), Australia (implemented December 2022), Mauritius (in force April 2021), and deals with the UK (signed July 2025), EFTA (implemented October 2025), Oman (signed December 2025) and the European Union (closure of negotiations announced January 2026). India has now finalised FTAs with three members of the Five Eyes grouping—Australia, the UK and New Zealand—with talks ongoing with the US and Canada.
