FTA signed between India and New Zealand, import and export will be done without paying tax

A free trade agreement was signed between India and New Zealand on Monday. This is expected to increase trade between the two countries. Due to this agreement, there will be no export tax on all products going from India to New Zealand. Similarly, there will be no import duty on most of the things coming from New Zealand to India. The result will be that businessmen of both the countries will be helped in expanding their business. This agreement is likely to be signed in the next 3 months and if this happens then it will also be implemented in 2026.

New Zealand Prime Minister Christopher Luxon has posted on X that he has spoken to Prime Minister Narendra Modi. Luxon says that this deal will create jobs for New Zealanders and they will get more money for their work. He has also said that in the coming time, exports from New Zealand to India are expected to increase from $ 1.1 billion per year to $ 1.3 billion per year. India’s Commerce and Industry Minister Piyush Goyal has said that this deal is in the interest of both the countries. Describing the benefits of this deal, he said, ‘This deal will boost the export of Indian pharma products. At the same time, there will be better opportunities for the students and professionals of India.

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In the month of March this year, talks regarding FTA started between the two countries and this deal has been agreed upon in just 9 months. Before this, no such agreement was being reached between the two countries for almost a decade. Let us tell you that India has done the third FTA this year. Earlier, India had also made a similar agreement with the United Kingdom and Oman. India’s talks are also going on with America and European Union.

How have been the trade relations between India and New Zealand?

If we look at the data of the last 6 years, it can be understood that the trade between the two countries had fallen significantly at one time. In the year 2019, there was a total trade of 1766 million dollars between the two countries, which continued to fall and reached only 1221.2 million dollars in 2022. There was a slight increase in 2024 and in 2025 this business reached 2104 million dollars.

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Now New Zealand Prime Minister Luxon says that the tariff on 95 percent of the products coming from New Zealand to India will either be reduced or reduced to zero. The result of this will be that the things that the people of India buy from New Zealand will be cheaper. India hopes that after this deal, the current trade between the two countries can double in the next five years and New Zealand can also invest about $20 billion in India in the next 15 years.

What are the special features of the deal?

This deal will provide special help to those sectors which are based on manufacturing. For example- Engineering, Automobile, Machinery, Plastic, Electronic, Chemical and Pharmaceutical.

New Zealand will invest $20 billion in India in the next 15 years. This investment will be mainly made for manufacturing and infrastructure which will provide work to the people of India.

Farmers of both the countries are expected to benefit. India sources fresh fruits from New Zealand and sends spices, pulses, processed food etc. from here. In such a situation, better opportunities can be created for the farmers of both the countries.

In New Zealand, India has been promised market access in a total of 118 service sectors and Most Favored Nation status to India in 139 service sectors. In return, India will give New Zealand market access in 106 service sectors and Most Favored Nation status in 45 sectors.

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For the first time, New Zealand has signed an agreement with any country on student mobility and post study work visa. Under this, Indian students will be able to work for 20 hours even while studying in New Zealand and no limit will be imposed on this. When their studies are completed, they will get a work visa which will be valid for 3 years. This visa will be valid for 3 years for graduate and post graduate students and then for 4 years for doctoral degree students.

New Zealand will give Temporary Employment Entry Visa to 5000 Indian youth so that they can stay in New Zealand for 3 years and work as per their skills. In this, professionals like Ayush Practitioner, Yoga Instructor, Indian Chef, Music Teacher will get visa.

What goes from India to New Zealand?

According to the data from April 2025 to October 2025, the largest exports from India to New Zealand are pharmaceutical formulas, petroleum products, cotton fabric, vehicles and readymade garments.

In such a situation, there is good news for Indian pharmaceutical companies, petroleum companies, automobile industry and clothing related businessmen.

What comes to India from New Zealand?

At the same time, India imports fresh fruits, iron and steel, wood products, coal, raw yarn and dairy products the most from New Zealand. Similarly, better opportunities will arise in India for New Zealand businessmen who deal in fresh fruits, dairy products, iron-steel and wood products.