The India–New Zealand Free Trade Agreement (FTA) marks a significant milestone in India’s trade diplomacy, delivering tangible and wide-ranging benefits across the economy, according to an official statement issued on Tuesday.
The agreement enhances market access for Indian goods, expands opportunities in services and mobility, and strengthens cooperation in agriculture, investment and emerging sectors. It eliminates duties on 100 per cent of Indian exports and includes a long-term investment commitment of US$20 billion over 15 years.
Under the Agricultural Productivity Partnership, the FTA supports Indian farmers by boosting productivity and integrating them into global value chains. The agreement also provides zero-duty access for labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods and processed foods, strengthening MSMEs and job creation.
India has offered market access across 70.05 per cent of tariff lines while retaining exclusions for sensitive sectors including dairy, select animal and vegetable products, sugar, fats and oils, arms and ammunition, metals and select gems and jewellery items.
New Zealand, in turn, has agreed to eliminate duties on 100 per cent of its tariff lines from the date of entry into force. Tariffs of around 10 per cent on nearly 450 Indian export products will be reduced to zero, enhancing competitiveness for Indian exporters.
The agreement also includes focused action plans for kiwifruit, apples and honey, supporting Indian growers through improved planting material, capacity building, technical assistance and better supply chains.
Officials said the benefits of the FTA are expected to be broad-based, supporting farmers, MSMEs, students and skilled professionals, while reinforcing India’s position as a trusted global trade partner and advancing the vision of Viksit Bharat 2047.
