India and New Zealand have concluded negotiations for a comprehensive and forward-looking Free Trade Agreement (FTA), marking a major economic and strategic milestone in India’s engagement with the Indo-Pacific region. The agreement has been finalised under the leadership of Prime Minister Narendra Modi and aligns with India’s long-term vision of Viksit Bharat 2047.

Negotiations for the FTA were formally launched on March 16, 2025, during discussions between India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay. The agreement was concluded after five formal negotiation rounds along with multiple in-person and virtual intersessions, making it one of India’s fastest-concluded trade deals.

The FTA provides duty-free access for 100 per cent of India’s tariff lines, significantly enhancing export competitiveness across labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles. This is expected to directly benefit MSMEs, farmers, artisans, women and youth, while strengthening India’s integration into global value chains.

India has also secured New Zealand’s most ambitious services commitments to date, covering high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services. These commitments are expected to create new opportunities for Indian service providers and high-skill employment.

A future-ready mobility framework forms a key pillar of the agreement, with improved entry and stay provisions for Indian professionals, students and youth. This includes work opportunities during studies, post-study work pathways, dedicated visa arrangements, a Working Holiday visa framework, and a new Temporary Employment Entry Visa pathway for up to 5,000 skilled Indian professionals at any given time, with stays of up to three years.

The agreement also focuses on agricultural productivity through dedicated Agri-Technology Action Plans for kiwifruit, apples and honey. These initiatives will support technology transfer, research collaboration, value-chain development, and capacity building, aimed at improving farmer incomes and strengthening domestic capabilities.

On the investment front, New Zealand has committed to facilitating investments of USD 20 billion into India over the next 15 years, supporting manufacturing, infrastructure, services, innovation and employment under the Make in India initiative. Indian companies are also expected to gain improved access to New Zealand and wider Pacific Island markets.

The FTA includes measures to boost pharmaceutical and medical device exports by enabling faster regulatory access through acceptance of GMP and GCP inspection reports from comparable global regulators. Commitments have also been made on Geographical Indications, AYUSH cooperation, culture, fisheries, tourism, forestry and traditional knowledge systems.

Beyond tariff liberalisation, the agreement addresses non-tariff barriers through enhanced regulatory cooperation, streamlined customs procedures, and improved sanitary and phytosanitary measures. With bilateral trade in goods and services already standing at around USD 2.4 billion, the FTA is expected to provide a stable and predictable framework to unlock the full potential of India–New Zealand economic relations.

The India–New Zealand FTA is the third such agreement concluded by India this year and represents a new-generation trade partnership focused on growth, inclusivity and long-term economic resilience.