India and New Zealand have officially concluded a comprehensive Free Trade Agreement (FTA), a landmark achievement in strengthening economic and strategic ties within the Indo-Pacific region. Union Minister of Commerce and Industry Piyush Goyal highlighted the unique nature of this agreement, noting that it was finalized in a remarkably short period of nine months and spearheaded entirely by a women-led team.
The FTA negotiations formally commenced on March 16, 2025, during a meeting between Minister Goyal and New Zealand's Minister for Trade and Investment, Todd McClay. The agreement was reached after five rounds of formal negotiations, along with several in-person and virtual discussions.
Goyal emphasized the people-centric approach of the FTA, stating, "Today this Free Trade Agreement is about building trade around people and launching opportunities for our farmers, for our entrepreneurs, for our students, for our Women, and for our innovators". He noted the agreement's potential to boost agricultural productivity, open doors for Indian businesses through exports, and provide global opportunities for Indian youth.
Under the FTA, New Zealand will eliminate tariffs on 100% of its tariff lines, granting duty-free market access to all Indian exports. This is expected to significantly enhance the competitiveness of labor-intensive sectors in India, including textiles, apparel, leather, footwear, marine products, gems and jewelry, handicrafts, engineering goods, and automobiles. These benefits will directly impact workers, artisans, women, youth, and MSMEs. India, in turn, has offered tariff liberalization on 70% of its tariff lines, covering 95% of bilateral trade, while ensuring the protection of sensitive sectors.
The agreement also focuses on enhanced mobility for Indian students and professionals. It provides post-study work visas for STEM graduates (up to three years) and doctoral scholars (up to four years), without any numerical limits. A new Temporary Employment Entry Visa pathway has been created, with a quota of 5,000 professionals, along with 1,000 Work and Holiday Visas. New Zealand has also committed to facilitating investments worth USD 20 billion into India over the next 15 years. These investments will support manufacturing, infrastructure, services, and innovation under the Make in India initiative.
The FTA is projected to boost trade between the two countries significantly. New Zealand's Prime Minister Christopher Luxon estimates that the FTA could increase New Zealand exports to India by $1.1 billion to $1.3 billion per year over the next two decades. Commerce Secretary Rajesh Agrawal described the agreement as a "new generation trade agreement built on tariffs, agricultural productivity, investment and talent with complementarity at the core".
According to Goyal, the FTA will ensure zero duty on 100% of India's exports, benefiting farmers, MSMEs, workers, artisans, women-led enterprises, and youth. Sectors such as engineering, manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals, and chemicals are also expected to gain. The agreement opens new opportunities for Indian agricultural products in New Zealand's markets, including fruits, vegetables, coffee, spices, cereals, and processed foods. Through agricultural productivity partnerships and access to New Zealand's agri-technologies, Indian farmers can expect higher productivity, improved quality, and increased incomes.
Aligned with India's national vision of Viksit Bharat 2047, this FTA is one of the fastest-concluded agreements of its kind with a developed country. It signifies a major step in strengthening long-term economic and geopolitical ties between India and New Zealand.
