India and New Zealand have officially signed a landmark Free Trade Agreement (FTA), marking a major step forward in strengthening economic ties between the two nations. The agreement was signed in the presence of Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay during the India-New Zealand Business Forum held in New Delhi. The deal was completed in just nine months after negotiations began on March 16, 2025, making it one of the fastest trade agreements concluded by India.
Under the agreement, India will receive immediate duty-free access to 100% of tariff lines in New Zealand. This represents a significant shift from the current system, where New Zealand imposes around a 10% tariff on nearly 450 Indian export categories. These include textiles, apparel, leather goods, headgear, ceramics, carpets, automobiles, and auto components. The removal of these tariffs is expected to significantly improve India’s export competitiveness in the New Zealand market.
In return, India has agreed to reduce or eliminate tariffs on 95% of its imports from New Zealand while carefully protecting sensitive domestic sectors. Dairy products such as milk, cheese, yogurt, cream, and whey, along with certain agricultural goods, have been excluded from the agreement to safeguard local industries.
Commerce Minister Piyush Goyal highlighted the long-standing relationship between the two countries, referencing shared historical ties and cooperation dating back to global conflicts. He emphasized that the FTA expands this partnership beyond historical connections into a future of stronger trade, trust, and investment. He noted that the agreement creates opportunities across the entire value chain, from agriculture to manufacturing, enabling long-term economic growth for both countries.
The FTA also includes major commitments beyond trade in goods. New Zealand has pledged to facilitate up to $20 billion in investment into India over the next 15 years. Additionally, it will offer 5,000 skilled work visas for Indian professionals in sectors such as IT, healthcare, engineering, education, and traditional services like yoga and AYUSH practices. A working holiday visa program will also allow 1,000 young Indians annually to travel and work in New Zealand.
For students, the agreement introduces improved mobility, including part-time work rights and extended post-study work opportunities. In pharmaceuticals and medical devices, regulatory approvals will be streamlined, reducing compliance barriers. The agreement also formally recognizes AYUSH systems, strengthening traditional medicine cooperation between both countries.
