India and New Zealand signed their historic free trade agreement on Monday, April 27. The agreement was signed after two teams from New Delhi and Wellington completed negotiations in December 2025.
The agreement covers 20 chapters, including trade in goods, remedies, dispute settlement, legal provisions and more.
India and New Zealand sign a historic agreement
After signing the FTA, Union Commerce and Industry Minister Piyush Goyal said the deal between India and New Zealand was concluded in nine months, adding that the pace reflects “the depth of trust and shared ambition between our two countries”.
“The signing of this FTA represents another milestone in India’s engagement with the developed world and brings us closer to Prime Minister Modi’s vision of Viksit Bharat 2047,” he said, adding that the FTA with Wellington is the seventh trade agreement the minister has signed in nearly four years.
Prime Minister Narendra Modi also lauded the signing of the FTA, noting that the agreement will benefit Indian farmers, youth, women, MSMEs, artisans, startups, students and innovators. Modi added that the FTA “will open new horizons for growth, create opportunities and deepen our synergies across sectors.”
New Zealand Prime Minister Christopher Luxon also said that the FTA with India would open up a new and “dynamic” market for the country.
“This deal will help diversify New Zealand’s export markets, support the goal of doubling the value of our exports over 10 years, and put New Zealand exporters on a more level playing field with competitors who already enjoy preferential access to India,” Luxon wrote on X.
While emphasizing the benefits for both India and New Zealand, here is a detailed look at the FTA.
Free Trade Agreement between India and New Zealand | Key points
- Based on the fact sheet issued by the two governments, New Zealand has committed to investing $20 billion over the next 15 years.
- Another key feature of the FTA is that it waives 100% of customs duties on Indian exports to New Zealand.
- The FTA will also allow temporary employment of Indian professionals in New Zealand. Under the FTA, at least 5,000 visas, called ‘temporary worker visas’, will be guaranteed for Indian professionals in skilled trades, with a stay of up to three years.
- Duty-free wines and spirits from India and wines from New Zealand will enter the domestic market at concessional duties, which will be gradually reduced over a period of 10 years.
- Indian goods, including labour-intensive sectors such as textiles, plastics, leather and engineering goods, will enter New Zealand duty-free.
- Meanwhile, India has opened 70.03% of its tariff lines to New Zealand, covering 95% of current imports.
- The ocean nation is expected to benefit from its exports of wool, wine, lumber, coal and fruits such as avocados and berries.
- The free trade agreement will also allow cooperation in agriculture and includes a plan to support Indian farmers in growing kiwi and apples, as well as in honey production.
Experts say the FTA with New Zealand is a win for India
According to Agneshwar Sen, trade policy officer at EY India, the FTA is expected to greatly benefit New Delhi.
“New Zealand’s offer to eliminate tariffs on 100% of its tariff lines upon entry into force of the agreement, covering all 8,284 lines, means that Indian goods in textiles, apparel, leather, medicines, machinery and automobile components enter New Zealand duty-free, erasing the average applicable tariff of 2.2%,” the senator said.
Sen also stated that the FTA will also open “mobility pathways for Indian professionals in IT, healthcare, engineering and education” through the new work visa regime for Indians.
“With merchandise exports to New Zealand already on an upward trend, this free trade agreement provides political certainty and ensures market access to maintain this momentum,” Sen added.
Meanwhile, according to Vikram Gandotra, President of the Indian Electrical and Electronics Manufacturers Association (IEEMA), the India-New Zealand FTA represents a “strategic entry point for Indian electrical equipment manufacturers into a high-value developed market, while strengthening India’s role in supply chains in the Indo-Pacific region.”
“With New Zealand already importing over $25 million worth of critical equipment such as transformers and cables from India, the immediate elimination of tariffs on selected items, coupled with a long-term tariff reduction roadmap, provides our manufacturers with a decisive competitive advantage,” Gandotra added.
Nirmal K Minda, President, Association of Indian Chambers of Commerce and Industry (ASSOCHAM), said the trade agreement represents a milestone in India’s “liberalized trade regime”.
“With 100% duty-free market access for Indian exports and the proposed investment commitment of USD 20 billion by New Zealand over 15 years, this will boost the trajectory of bilateral trade and investment,” the ASSOCHAM Chairman said.
