India and New Zealand sign Free Trade Agreement (FTA)

Key facts

• India and New Zealand have signed a Free Trade Agreement (FTA) to enhance trade in goods and services, investment flows, and labour mobility.
• The FTA comprises 20 chapters covering goods, services, rules of origin, customs facilitation, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement, and legal provisions.
• Bilateral trade between India and New Zealand is projected to reach USD 5 billion by 2030.
• Foreign direct investment from New Zealand into India is projected to reach USD 20 billion over the next 15 years.
• India secured duty-free access for all its exports to New Zealand, including labour-intensive sectors such as textiles, leather, plastics, and engineering goods.
• The agreement introduces a temporary employment visa pathway allowing up to 5,000 Indian professionals to work in New Zealand for up to three years.
• India will expand services exports in IT, education, financial services, tourism, construction, engineering, healthcare, and AYUSH, including yoga instructors, Indian chefs, and music teachers.
• New Zealand receives immediate duty-free access to over 54% of its exports to India, including sheep meat, wool, coal, and forestry products.
• Tariffs on seafood, iron, steel, and aluminium from New Zealand will be reduced or phased out over time.
• India has protected apples, kiwifruit, manuka honey, and dairy through tariff-rate quotas, minimum import prices, and safeguard mechanisms.
• India has excluded dairy, sugar, and certain metals from the agreement to protect domestic producers.
• Bilateral trade between India and New Zealand was approximately USD 2.4 billion in 2024.