NEW DELHI: India has steadily expanded its global trade partnerships to strengthen economic growth, create jobs, and enhance its global standing. After signing six Free Trade Agreements in the last five years, the latest being with Oman this month, India and New Zealand have just concluded negotiations for a forward-looking FTA,  marking a historic milestone in bilateral economic relations. The Agreement delivers unprecedented duty-free access for Indian exports to New Zealand while safeguarding India’s sensitive sectors, strengthening economic resilience, and promoting inclusive growth aligned with India’s national priorities.

India and New Zealand announced negotiations for a Free Trade Agreement (FTA) In March 2025. Following several rounds of negotiations, the India-New Zealand FTA was concluded in December 2025, becoming   one of India’s fastest-concluded FTAs. This FTA enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets. The agreement opens opportunities for India to emerge as a key supplier of skilled workforce, alongside prospects for future cooperation in areas such as AYUSH and services such as Yoga Instructors, Indian Chefs, and Music Teachers, and services under sector of interests like IT, Engineering, Healthcare, Education, and Construction.  

Overall, the agreement establishes establishes a predictable, transparent framework that expands market access, enhances trade in services, creates mobility pathways, encourages long-term investment, and builds agriculture productivity.

India – New Zealand: Bilateral Trade Ties

India’s partnership with New Zealand is shaped by both economic realities and strong people-to-people ties. Currently, New Zealand is India’s second-largest trading partner in Oceania.

At USD 49,380, New Zealand is among the higher-income economies in Oceania. In 2024, New Zealand’s imports stood at USD 47 billion, while exports were USD 42 billion. New Zealand invests nearly 8% of its GDP annually overseas, with total overseas investment valued at USD 422.6 billion as of March 2025.

Around 300,000 persons of Indian origin and NRIs live in New Zealand, making up nearly 5% of its population. This diaspora acts as a cultural and economic bridge, supporting stronger bilateral ties and demand for Indian goods and services.

This FTA builds on the socio-economic foundation aimed at creating new opportunities.

Merchandise Trade: Grew from USD 873 million in 2023–24 to USD 1.3 billion in 2024–25, registering a 49% growth.

Merchandise Exports to New Zealand: Rose to USD 711 million in 2024–25, showing a positive trend of 32%.

Services Trade: India’s services exports to New Zealand grew by 13% in 2024, reaching USD 634 million. Major sectors include travel, IT, and business services.

India and New Zealand merchandise bilateral trade increased from USD 855 Million in 2015-2016 to USD 1298 Million in 2024-2025. The exports increased by 130% whereas imports only increased by 7.21% in 10 years. In 2024-25, the exports from India to New Zealand was higher than imports from New Zealand, maintaining positive trade balance with the country.

Salient Features of the FTA

The FTA eliminates duty on 100% of Indian Exports

A USD 20 billion investment commitment over 15 years strengthens long-term economic and strategic cooperation.

Through Agricultural Productivity Partnership, the FTA collaborates with farmers to boost productivity and integrate them in the global value chains.

The FTA boosts MSMEs and Jobs through Zero-duty access for labour-intensive sectors including textiles, apparel, leather, footwear, gems & jewellery, engineering goods and processed foods.

India has offered market access in 70.03% of the tariff lines while keeping 29.97 % tariff lines in exclusion. Immediate Elimination (EIF) on 30%, Rest is phased.

Certain products are kept in exclusion such as Dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils, Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils etc.), Aluminium and articles thereof (Ingots, billets, wire bars) among others.

30.00% of tariff lines will have immediate duty elimination, covering wood, wool, sheep meat, leather-raw hides etc

35.60% of tariffs are subject to phased elimination over 3, 5, 7, and 10 years,including petroleum oil, malt extract, vegetable oils, and selected electrical and mechanical machinery, peptones etc.

4.37% of products face tariff reductions, such as wine, pharmaceutical drugs, polymers, aluminium, iron and steel articles etc

0.06% fall under tariff rate quotas, including honey, apples, kiwi fruit, and albumins including milk albumin.

Enhanced Market Access for Indian Goods

Gains to India from FTA

New Zealand’s market access offer covers immediate elimination of duties (zero duty) on 100% of tariff lines of New Zealand (8,284 tariff lines), from Entry into Force.

New Zealand maintained tariffs around 10% in around 450 lines of key Indian exports in products including textile/apparel products, leather and headgear, ceramics, carpets, ⁠automobiles and auto components. Additionally, the average applied tariff at 2.2% in 2025 will become zero from EIF.

The offer extends gains to several products and sectors

Labour intensive sectors like textiles and clothing, leather and footwear;

Emerging and advanced engineering sectors like transport/auto, pharmaceuticals, plastic & rubber, electrical & electronic machinery, mechanical machinery, chemicals and;

Agri Products like fruits and vegetables, coffee, spices, cereals, processed foods

Gains from import to support domestic industries: wooden logs, coking coal, waste and scrap of ferrous, non-ferrous metals

ains for Agriculture, Technology Cooperation, and Farmer Income Growth

New Zealand have agreed on focused Action Plans for kiwifruit, apples, and honey to improve productivity, quality, and sectoral capabilities of these fruits growers in India

The cooperation includes the establishment of Centres of Excellence, improved planting material, capacity building for growers, technical support for orchard management, post-harvest practices, supply chains and food safety.

Projects for premium apple cultivators and sustainable beekeeping practices will enhance production and quality standards.

This is Paired with Market access for the selected agricultural products (Apples, Kiwifruit, Manuka Honey) from New Zealand in India.

This access will be managed through a Tariff Rate Quota (TRQ) system with Minimum Import Price and seasonal imports, ensuring consumer choice while protecting domestic farmers.

All TRQs are linked to Agri-technology Action Plans and monitored by a Joint Agriculture Productivity Council, balancing market access with protection of sensitive domestic agricultural sectors.

Enhanced Opportunities Beyond Goods

Services

Best-Ever Offer by New Zealand: Commitment across 118 services sectors, with Most-Favoured Nation (MFN) treatment in 139 sectors.

Health & Traditional Medicine Annex: For the first time, New Zealand has signed an annex to facilitate trade in Ayurveda, yoga, and other traditional medicine services with India. This landmark provision promotes the global recognition of India’s AYUSH systems,supports medical value travel, encourages collaboration in wellness services, and reinforces India’s position as a global hub for health, wellness, and traditional medicine services. It gives centre stage to India’s AYUSH disciplines (Ayurveda, Yoga & Naturopathy, Unani, Sowa-Rigpa, Siddha, and Homeopathy) alongside Maori Health practices

Mobility & Education

Student Mobility: New Zealand signed Annex on Student Mobility and Post Study Work Visa for the first time with any country. Indian students can work up to 20 hours per week while studying, even if there are policy changes in future, with extended post-study work visas (STEM Bachelor: 3 yrs; Master’s: up to 3 yrs; Doctorate: up to 4 yrs).   

Professional Pathways: A quota of 5,000 visas for skilled Indians for stay upto 3 years in the sectors of interest to India which include Indian iconic occupations (AYUSH practitioners, Yoga Instructors, Indian Chefs, and Music Teachers) and Other sectors of interest - IT, Engineering, Healthcare, Education, and Construction

Working Holiday Visa: 1,000 young Indians annually can avail multiple entry in New Zealand for a period of 12 months.

These provisions create unprecedented opportunities for Indian youth and professionals to gain global exposure.

Investment and Economic Co-operation

FDI Commitment: New Zealand will invest USD 20 billion in India over 15 years, strengthening long-term economic ties.

Organic Primary Products: Mutual recognition of organic certification to be agreed between the two sides.

MSME Cooperation: Institutional linkages to help small businesses access trade-related information and global markets.

Technical Assistance: Cooperation has been agreed in AYUSH, audio visual industries, tourism, sports and traditional knowledge systems. The FTA promotes India’s AYUSH systems internationally, encourages medical value travel, and positions India as a global wellness hub.

Cultural & Traditional Knowledge

Dedicated cooperation in Ayush and Indian traditional knowledge has been agreed.

Engagement with New Zealand’s indigenous Maori communities to promote cultural exchange and mutual respect. This strengthens India’s soft power and global recognition of its heritage.

Regulatory & Institutional Provisions

Pharmaceuticals & Medical Devices: Annexes for expedited regulatory pathways and recognition of inspections from trusted regulators (US, EU, UK, Canada).

Intellectual Property Rights: Binding commitment by New Zealand to amend its laws within 18 months to provide EU-level protection for India’s Geographical Indications (GIs).

Customs & Trade Facilitation: Advance rulings, electronic documentation, and faster clearance times (within 48 hours, 24 hours for perishables).

Rules of Origin (ROO): Robust framework to prevent circumvention and ensure integrity of preferential access.