New Delhi: India and New Zealand have formally concluded a comprehensive and forward-looking Free Trade Agreement (FTA), marking a major economic milestone in bilateral relations. The pact also strengthens India’s Indo-Pacific engagement. Notably, both countries finalised the agreement within a year of its launch, making it one of India’s fastest FTAs with a developed nation. Moreover, it aligns closely with the national vision of Viksit Bharat 2047.
Negotiators from India and New Zealand launched talks on 16 March 2025 and concluded them after five formal rounds. In addition, teams held continuous in-person and virtual engagements. As a result, the agreement establishes a people-centric, jobs-driven partnership focused on tariffs, agricultural productivity, investment, and talent mobility.
India–New Zealand FTA delivers zero-duty access and services expansion
Under the agreement, New Zealand will grant zero-duty market access on 100 percent of Indian exports. Meanwhile, India has offered tariff liberalisation on 70 percent of tariff lines, covering 95 percent of bilateral trade. Consequently, Indian exports such as textiles, pharmaceuticals, leather, engineering goods, agricultural products, gems and jewellery, and automobiles will gain stronger global competitiveness.
Furthermore, New Zealand has extended its most ambitious services offer to India so far. This offer covers 118 services sectors, including IT-enabled services, professional services, audio-visual media, telecommunications, construction, tourism, and travel-related services. In addition, the pact provides Most-Favoured Nation treatment across nearly 139 sub-sectors, thereby creating new opportunities for high-skilled employment.
Importantly, the agreement boosts student and professional mobility. It allows post-study work rights of up to three years for STEM graduates and up to four years for doctoral scholars, with no numerical caps. Additionally, it earmarks 5,000 Temporary Employment Entry visas for professionals and 1,000 Work and Holiday visas. Finally, planned investment commitments of USD 20 billion over 15 years will further strengthen cooperation in manufacturing, services, and innovation.
