New Delhi — External Affairs Minister S. Jaishankar described the signing of the India–New Zealand Free Trade Agreement as a “landmark” step that will broaden economic and social ties between the two countries. In a post on X, he said the pact will strengthen economic partnerships, attract investment and improve market access for Indian exporters, while creating opportunities for innovators, entrepreneurs, farmers, MSMEs, women and youth.
The agreement was signed at Bharat Mandapam in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay, with senior officials, business leaders and industry stakeholders in attendance. New Zealand has pledged roughly USD 20 billion of investment in India over the next 15 years, signalling sustained confidence in India’s growth prospects.
The FTA was launched on March 16, 2025 after a meeting between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon and was finalised on December 22, 2025 following five rounds of negotiations completed in nine months. Officials say the pact is expected to boost exports, generate jobs, foster new business partnerships and deepen cooperation between the two democracies across the Indo-Pacific.
On goods, New Zealand will immediately eliminate tariffs on a wide range of products, removing duties of about 10% that currently apply to several Indian exports including textiles, leather goods, carpets, ceramics and auto components. Agricultural exports such as tea, coffee and spices are also expected to benefit.
India offered market access on nearly 70% of tariff lines while keeping around 30% excluded. About 30% of goods will see tariffs eliminated immediately; more than one-third will receive phased reductions; and some items will face limited cuts or quota-based concessions. Sensitive exclusions include dairy (milk, cheese, butter, yoghurt), certain animal products, sugar, edible oils, gems and jewellery, and selected metals. Apples, kiwifruit and manuka honey will enter New Zealand markets under tariff-rate quotas, accompanied by cooperation on technology and productivity.
In services, New Zealand opened more than 100 sectors to Indian providers, and India will liberalise a similar number for New Zealand with limited preferential treatment. The agreement also eases mobility: caps on Indian students are being removed, post-study work opportunities in STEM fields are extended, and up to 5,000 visas will be available at any given time for skilled Indian professionals in sectors such as IT, healthcare, education and construction.
Officials and industry leaders said the FTA aims to create a platform for deeper commercial engagement while reinforcing strategic ties between India and New Zealand.
