India and New Zealand Seal Groundbreaking Free Trade Agreement for Economic Growth and Global Partnership

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Dated: 24.12.2025

India and New Zealand Seal Groundbreaking Free Trade Agreement for Economic Growth and Global Partnership

In a historic milestone, India and New Zealand have successfully concluded negotiations for a comprehensive Free Trade Agreement (FTA), marking a new era of economic and strategic collaboration between the two nations. Launched on March 16, 2025, this agreement is a testament to the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi and aligns with India’s national vision of Viksit Bharat 2047. The FTA is a people-centric, jobs-driven initiative that promises to strengthen bilateral ties, boost trade, and create new opportunities for both countries.

Key Highlights of the India-New Zealand FTA

Unprecedented Market Access for Indian Exports The agreement ensures zero-duty market access for 100% of India’s exports to New Zealand, including textiles, pharmaceuticals, leather, engineering goods, and agricultural products. India has also offered tariff liberalization on 70% of tariff lines, covering 95% of bilateral trade.
Best-Ever Services Offer by New Zealand New Zealand has extended its most ambitious services offer to date, covering 118 sectors such as IT, professional services, tourism, construction, and education. This opens up substantial opportunities for Indian service providers and skilled professionals.
Boost to Student Mobility and Employment Pathways The FTA introduces post-study work visas and professional pathways for Indian students in New Zealand, with no numerical caps. STEM graduates can enjoy post-study work rights of up to three years, while doctoral scholars can stay for up to four years. Additionally, a dedicated quota of 5,000 Temporary Employment Entry visas and 1,000 Work and Holiday visas will be available for Indian professionals and youth.
Agricultural Productivity Partnerships The agreement establishes Centres of Excellence for apples, kiwifruit, and honey to enhance productivity and farmer incomes. It includes technology transfer, research collaboration, and capacity building for growers, while safeguarding domestic producers through quotas and minimum import prices.
Investment Commitments New Zealand has pledged to invest USD 20 billion in India over the next 15 years, supporting manufacturing, infrastructure, services, and innovation under the Make in India initiative.
Pharma and Medical Devices Export Boost Faster regulatory access for Indian pharmaceutical and medical devices will be facilitated through the acceptance of inspection reports from comparable regulators like the US FDA and EMA, reducing compliance costs and expediting product approvals.
Cultural and Traditional Knowledge Cooperation The FTA promotes India’s AYUSH systems globally, encourages medical value travel, and positions India as a wellness hub. Cooperation in fisheries, forestry, horticulture, and audio-visual tourism further strengthens cultural ties.

A Future-Ready Partnership 

The India-New Zealand FTA is a new-generation trade agreement that goes beyond traditional economic cooperation. It focuses on fostering innovation, enhancing MSME participation, and creating skilled employment pathways. With provisions for streamlined customs, regulatory cooperation, and non-tariff barrier reduction, the agreement ensures effective market access for Indian exports.

Economic Impact

The FTA is expected to significantly boost bilateral trade, which reached USD 2.4 billion in 2024, with services trade alone accounting for USD 1.24 billion. By providing a stable and predictable framework, the agreement unlocks the full potential of India-New Zealand economic engagement, integrating Indian workers, artisans, and MSMEs deeper into global value chains.

A Vision for Viksit Bharat 2047 

This landmark agreement is the third FTA concluded by India in 2025, showcasing the country’s commitment to becoming a globally competitive and resilient economy. As Commerce Secretary Rajesh Agrawal aptly stated, “India’s strengths expand exports, support labour-intensive growth, and power services, while New Zealand gains deeper access to India’s large and growing economy.” The India-New Zealand Free Trade Agreement is not just about trade; it is about building a partnership that empowers people, drives innovation, and strengthens economic resilience. It is a significant step forward in India’s journey towards achieving the vision of Viksit Bharat 2047 and establishing itself as a key player in the global economy.

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Source: Ministry of Commerce & Industry

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