India-New Zealand FTA talks completed: Investment assured of Rs 18 billion in the next 15 years, highlights of the agreement

New Delhi: A free trade agreement (FTA) was signed between India and New Zealand on Monday. This was jointly announced after Prime Minister Narendra Modi’s telephone conversation with New Zealand Prime Minister Christopher Luxon. Negotiations on this agreement began during Prime Minister Luxon’s visit to India in March 2025.

Both leaders said that the completion of the FTA in a record nine months is going to further deepen the relations between the two countries. This shows shared ambition and political will. The FTA will strengthen bilateral economic ties and enhance market access and investment.

This agreement will strengthen the strategic cooperation between the two countries. This agreement will also create new opportunities in various sectors for innovators, entrepreneurs, farmers, small and medium enterprises (MSMEs), students and youth of both the countries. With the strong foundation of the FTA, the two leaders expressed confidence in doubling bilateral trade in the next five years and investment of US$20 billion (Rs 17.91 billion) from New Zealand to India over the next 15 years. PM Modi and Luxon also welcomed the progress made in other areas of bilateral cooperation, including sports, education and people-to-people exchanges. The two leaders reiterated their commitment to further strengthen the India-New Zealand partnership.

India and New Zealand on Monday announced successful completion of Free Trade Agreement (FTA) talks. The agreement is likely to be signed in the next three months and come into effect from next year.

Highlights of the agreement:

– Big benefit to Indian exports: Zero duty market access to 100% of India’s exports to New Zealand. India offered duty liberalization in 70% of product categories, accounting for 95% of bilateral trade.

– Promotion of labour-intensive sectors: Huge increase in competitiveness of sectors like textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and motor vehicles.

– Fastest FTA: This is the fastest completion of the agreement with a developed country, which is a great end to the year for all major Indian exports including pharmaceuticals, agricultural products.

– Visa Facility: Dedicated quota of 5,000 Temporary Employment Entry Visas and 1,000 Working and Holiday Visas for Indian professionals.

– Investment Commitment: New Zealand promised to increase investment by US$ 20 billion in India in the next 15 years.

– Agricultural Cooperation: Partnership to increase productivity by setting up centers of excellence for apple, kiwi and honey.

– Discount on raw materials: Duty free import of wood logs, coking coal and metal scrap for Indian manufacturing.

– Cooperation in diverse fields: Intensive cooperation in AYUSH, culture, fisheries, audio-visual, tourism, forestry, horticulture and traditional knowledge systems.

– Remove non-tariff barriers: Provisions for removal of trade barriers through better regulatory cooperation.

At present, bilateral goods trade has reached $1.3 billion in 2024-25, while the total trade in goods and services will be around $2.4 billion in 2024, of which services contributed $1.24 billion.