India, New Zealand Sign Landmark Free Trade Agreement, Unlocking $20 Billion Investment and New Growth Opportunities: In a significant step toward deepening global economic partnerships, Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Hon. Todd McClay on Monday signed the landmark India–New Zealand Free Trade Agreement (FTA) at Bharat Mandapam in New Delhi. The agreement, signed under the leadership of Narendra Modi, marks a new chapter in bilateral relations and is being described as a “once-in-a-generation” opportunity for both nations.
Calling the pact transformative, McClay said the agreement would boost exports, create jobs, and strengthen economic ties. “This is a once-in-a-generation opportunity that reflects our shared ambition for growth and prosperity,” he said, highlighting strong participation from New Zealand businesses and the role of the Indian diaspora in strengthening bilateral relations.
Goyal described the agreement as a “defining milestone” aligned with India’s vision of Viksit Bharat 2047, emphasizing its focus on exports, investment, innovation, and inclusive growth. “The $20 billion investment commitment signals global confidence in India’s growth story. This agreement will empower MSMEs, farmers, youth, women, and entrepreneurs,” he said.
Unprecedented Market Access and Trade Boost
The FTA provides 100% duty-free access to New Zealand markets for Indian exports, covering all tariff lines. This is expected to significantly boost labour-intensive sectors such as textiles, leather, footwear, engineering goods, and processed foods.
India, in turn, has offered market access on 70% of tariff lines, covering 95% of New Zealand’s exports, while protecting sensitive sectors such as dairy, edible oils, and key agricultural products.
Bilateral trade, currently valued at around $2.4 billion, is expected to grow substantially following the agreement, supported by improved market access and streamlined trade processes.
Boost for MSMEs, Manufacturing and Supply Chains
The agreement is designed to strengthen India’s MSME ecosystem by reducing trade barriers and enhancing competitiveness. Duty-free access to key raw materials such as coking coal, wooden logs, and metal scrap is expected to lower production costs and improve manufacturing efficiency.
Indian exporters will also benefit from faster customs clearances, with standard shipments processed within 48 hours and perishable goods within 24 hours, ensuring smoother trade flows.
Services, Talent Mobility and Student Opportunities
A major highlight of the agreement is expanded access to 118 service sectors, including IT, finance, education, and professional services. The FTA also includes Most-Favoured Nation commitments across 139 sub-sectors, offering Indian businesses a level playing field.
The deal opens new pathways for skilled professionals, including a 5,000-visa quota for temporary employment entry, covering sectors such as healthcare, engineering, IT, and traditional services like yoga and Ayurveda.
Student mobility is another key feature, with post-study work rights of up to three years for STEM graduates and four years for doctoral candidates, alongside no numerical caps on Indian students in New Zealand.
Agriculture and Rural Economy Gains
The FTA introduces agricultural productivity partnerships, including Centres of Excellence for apples, kiwifruit, and Manuka honey. These initiatives aim to enhance farmer incomes, improve quality standards, and facilitate knowledge transfer.
While select products from New Zealand will enter India under controlled quotas, safeguards have been built in to protect domestic farmers and rural economies.
Innovation, Healthcare and AYUSH Global Expansion
The agreement includes fast-track approvals for pharmaceuticals and medical devices, reducing compliance costs and accelerating market access.
In a first-of-its-kind provision, the FTA promotes collaboration in traditional medicine systems such as Ayurveda and Yoga, strengthening India’s global leadership in AYUSH and wellness services.
It also supports innovation, start-ups, and emerging technologies, with joint initiatives in renewable energy, digital services, and infrastructure development.
A Strategic and Future-Focused Partnership
Negotiated in just nine months, the agreement is one of India’s fastest FTAs with a developed nation. It builds on strong people-to-people ties and aims to position both countries as key partners in the Indo-Pacific region.
Commerce Secretary Rajesh Agrawal said the agreement offers “predictability in an uncertain world” and creates a level playing field for Indian exporters.
With zero tariffs, expanded services access, and a robust investment framework, the India–New Zealand FTA is expected to drive trade, create jobs, and strengthen economic resilience in both nations—marking a major step forward in India’s global trade strategy.
