New Delhi. A new era began on Monday in bilateral trade relations between India and New Zealand. Both the countries have signed a historic Free Trade Agreement (FTA), which is going to bring sweeping changes in the fields of trade, investment and employment. This important agreement was made official in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay. This agreement is considered a major diplomatic and economic victory for the Indian economy and exporters in the global market.
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Agreement in record time and a lifeline for exporters
The most special thing about this FTA has been its speed. The negotiations, which began on March 16, 2025, were concluded within a record nine months. With the implementation of this agreement, India will get immediate 100 percent duty-free access to all tariff products. As a result, 100% of Indian exports to New Zealand will now attract no tariff.
Currently, a duty of 10 per cent was imposed on about 450 products exported by New Zealand from India. Under the new agreement, this duty will be eliminated, which will give a huge boost to the exports of Indian textiles and apparel, leather industry, headgear, ceramics, carpets, and vehicles and their parts. In return, India has also exempted or reduced tariffs on 95 percent of goods coming from New Zealand.
Protection of foreign investment and domestic industries
Along with trade facilitation, a key pillar of this FTA is foreign investment. Under the agreement, New Zealand has committed to invest a whopping $20 billion in India over the next 15 years. This investment is on the lines of the $100 billion investment framework proposed in the agreement signed with India by the European Free Trade Association (EFTA).
At the same time, in a very important strategic move, India has completely kept its sensitive domestic agriculture and dairy sectors out of the scope of this FTA. Import exemptions have not been granted to all dairy products like milk, cream, whey, curd and cheese as well as other agricultural products, thereby ensuring the protection of the interests of Indian farmers and the local dairy industry.
New doors will open for students and professionals
Apart from the economic front, this FTA will prove to be a game-changer for the mobility of working professionals and students.
Relief to students: For the first time globally, New Zealand has signed an agreement with a country on student movement and post-study work visa. Now Indian students will be able to work up to 20 hours per week during their studies and will get the benefit of Extended Post-Study Work Visa.
Opportunities for skilled professionals: A special quota of 5,000 temporary employment visas has been set up for skilled Indian professionals seeking high-paying employment. Through this, professionals will be able to stay and work in New Zealand for three years.
Working Holiday Programme: Under this agreement, a special Working Holiday Visa program has also been introduced, in which 1,000 young Indians every year will be able to make multiple entry into New Zealand for 12 months.
This free trade agreement between India and New Zealand creates opportunities for the economies of both the countries. While India’s exporters and skilled workforce will directly benefit, New Zealand will get easy access to a huge and emerging market. This policy of attracting foreign investment while protecting critical sectors (such as dairy) will position India as a strong and reliable partner in the global supply chain in the future.
What did the Commerce Minister say on the agreement?
On the occasion of the signing of the India-New Zealand Free Trade Agreement (FTA), Union Commerce and Industry Minister Piyush Goyal said, we are meeting at a time when the world economy is being restructured, borders are being redrawn, nations are choosing their partners and different countries are charting the path to their future. In these changing times, India and New Zealand have chosen each other. India-New Zealand Free Trade Agreement has been concluded in a record 9 months. This momentum reflects the deep trust and shared ambition between our countries. The signing of this Free Trade Agreement is another important milestone in India’s relations with developed countries and brings us closer to Prime Minister Modi’s vision of ‘Developed India 2047’… This is my seventh Free Trade Agreement in the last three and a half years, and two more are to come. There will be agreements with the EU and the US in the next few months…”
Exports from India will get a boost after the agreement
It is noteworthy that the FTA between the two countries was concluded on December 22, 2025 in a record nine months. This will strengthen bilateral relations. Current trade is $1.3 billion in goods and $634 million in services. Both the countries aim to take it to $5 billion in the next five years. The 3 lakh Indian diaspora in New Zealand strengthens this partnership. This agreement provides 100 per cent duty-free access to New Zealand for Indian exports. This also includes a commitment to invest $20 billion in India over the next 15 years. According to Saurabh Sanyal, Secretary General of ASSOCHAM, India’s textile, pharmaceuticals and machinery exports will increase. India’s services sector, especially information technology and financial services, will benefit in New Zealand.
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