India – New Zealand Free Trade Agreement Signed

PIB Headquarters India – New Zealand Free Trade Agreement Signed

Posted On: 27 APR 2026 5:19PM by PIB Delhi Key Takeaways India- New Zealand FTA eliminates duty on 100% of Indian Exports USD 20 billion investment commitment, strengthening long-term economic and strategic cooperation.

The agreement places special emphasis on strengthening MSMEs and women-led enterprises.

India protects its key interests in dairy and agriculture; Huge win for labour intensive sectors like textile and leather.

New Zealand facilitates Health and Traditional Medicine Services for the first time.

Student Mobility and Post Study Work Visa for STEM Graduates, Skilled Professionals; opens new visa pathway for 5,000 skilled occupations.

Introduction India has steadily expanded its global trade partnerships to strengthen economic growth, create jobs, and enhance its global standing. In the past few years 9 Free Trade Agreements have been signed spanning 38 developed countries. The latest is a forward-looking FTA signed with New Zealand today, marking a historic milestone in bilateral economic relations. It is a comprehensive framework encompassing market access, agricultural productivity, investment, talent mobility, collaboration in sports, tourism, and people- to-people ties. The FTA is designed to benefit manufacturers, farmers, MSMEs, women entrepreneurs, students, and skilled professionals across both nations.

India and New Zealand announced negotiations for a Free Trade Agreement (FTA)on 16 March 2025and concluded in a record 9 months, making this the fastest concluded free trade agreement. The signing of FTA enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets. The agreement opens opportunities for India to emerge as a key supplier of skilled workforce, alongside prospects for future cooperation in areas such as AYUSH and services such as Yoga Instructors, Indian Chefs, and Music Teachers, and services under sector of interests like IT, Engineering, Healthcare, Education, and Construction.India – New Zealand: Bilateral Trade Ties India’s partnership with New Zealand is shaped by both economic realities and strong people-to-people ties. Currently, New Zealand is India’s second-largest trading partner in Oceania.At USD 49,380, New Zealand is among the higher-income economies in Oceania. In 2024, New Zealand’s imports stood at USD 47 billion, while exports were USD 42 billion. New Zealand invests nearly 8% of its GDP annually overseas, with total overseas investment valued at USD 422.6 billion as of March 2025.

Around 300,000 persons of Indian origin and NRIs live in New Zealand, making up nearly 5% of its population. This diaspora acts as a cultural and economic bridge, supporting stronger bilateral ties and demand for Indian goods and services.

This FTA builds on the socio-economic foundation aimed at creating new opportunities.

Merchandise Trade: Grew from USD 873 million in 2023–24 to USD 1.3 billion in 2024–25, registering a 49% growth.

Merchandise Exports to New Zealand: Rose to USD 711 million in 2024–25, showing a positive trend of 32%.

Services Trade: India’s services exports to New Zealand grew by 13% in 2024, reaching USD 634 million. Major sectors include travel, IT, and business services.

India and New Zealand merchandise bilateral trade increased from USD 855 Million in 2015-2016 to USD 1298 Million in 2024-2025. The exports increased by 130% whereas imports only increased by 7.21% in 10 years. In 2024-25, the exports from India to New Zealand was higher than imports from New Zealand, maintaining positive trade balance with the country.

Salient Features of the FTAThe FTA eliminates duty on 100% of Indian Exports A USD 20 billion investment commitment over 15 years strengthens long-term economic and strategic cooperation.

Through Agricultural Productivity Partnership, the FTA collaborates with farmers to boost productivity and integrate them in the global value chains.

The FTA boosts MSMEs and Jobs through Zero-duty access for labour-intensive sectors including textiles, apparel, leather, footwear, gems & jewellery, engineering goods and processed foods.

India has offered market access in 70.03% of the tariff lines while keeping 29.97 % tariff lines in exclusion, which covers 95% of New Zealand's Bilateral Trade.

Certain products are kept in exclusion such as dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils, Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils etc.), Aluminium and articles thereof (Ingots, billets, wire bars) among others.

30.00% of tariff lines will have immediate duty elimination, covering wood, wool, sheep meat, leather-raw hides etc.

35.60% of tariffs are subject to phased elimination over 3, 5, 7, and 10 years, including petroleum oil, malt extract, vegetable oils, and selected electrical and mechanical machinery, peptones etc.

4.37% of products face tariff reductions, such as wine, pharmaceutical drugs, polymers, aluminium, iron and steel articles etc

0.06% fall under tariff rate quotas, including Mānuka honey, apples, kiwi fruit, and albumins including milk albumin.

Enhanced Market Access for Indian Goods Gains to India from FTA The FTA provides duty-free access for 100% of India's exports to New Zealand, covering all tariff lines, and is expected to significantly boost MSMEs and employment.

Enhanced competitiveness in labour intensive sectors like textiles and clothing, leather and footwear, gems and jewellery, engineering goods, and processed foods.

India secures duty-free inputs for its manufacturing sector, including wooden logs, coking coal, and waste and scraps of metals, lowering production costs and enhancing the global competitiveness of Indian industry.

Reduced trade barriers and regulatory certainty will strengthen Indian manufacturing and global value chain integration for MSMEs in textiles, apparel, engineering goods, chemicals, food processing, and electronics.

Structured cooperation for MSMEs includes enhanced access to trade-related information, export readiness programmes, and linkages with New Zealand's SME ecosystem, with specific focus on start-ups and enterprises owned by women and youth.

Gains for Agriculture, Technology Cooperation, and Farmer Income Growth New Zealand have agreed on focused Action Plans for kiwifruit, apples, and honey to improve productivity, quality, and sectoral capabilities of these fruits’ growers in India.

The cooperation includes the establishment of Centres of Excellence, improved planting material, capacity building for growers, collaborative research, technical support for orchard management, post-harvest practices, supply chains and food safety.Projects for apple cultivators and sustainable beekeeping practices will enhance production and quality standards.

This is Paired with Market access for the selected agricultural products (Apples, Kiwifruit, Manuka Honey) and Albumins from New Zealand in India. This access will be managed through a Tariff Rate Quota (TRQ) system with Minimum Import Price and seasonal imports, ensuring consumer choice while protecting domestic farmers. All TRQs are paired with delivery on Agriculture Productivity Action Plans and monitored by a Joint Agriculture Productivity Council, balancing market access with protection of sensitive domestic agricultural sectors.

Areas of cooperation under agriculture also include Horticulture, Honey, Forestry, Livestock, Fisheries, Apiculture, and the Wine sector.

Enhanced Opportunities Beyond Goods Services Best-Ever Offer by New Zealand: Commitment across 118 services sectors, with Most-Favoured Nation (MFN) treatment in 139 sectors.

Health & Traditional Medicine: For the first time, New Zealand has facilitated trade in Ayurveda, yoga, and other traditional medicine services with India. This landmark provision promotes the global recognition of India’s AYUSH systems, supports medical value travel, encourages collaboration in wellness services, and reinforces India’s position as a global hub for health, wellness, and traditional medicine services. It gives centre stage to India’s AYUSH disciplines (Ayurveda, Yoga & Naturopathy, Unani, Sowa-Rigpa, Siddha, and Homeopathy) alongside Maori Health practices.

Mobility & Education

Student Mobility: New Zealand signed Annex on Student Mobility and Post Study Work Visa for the first time with any country. Indian students can work up to 20 hours per week while studying, even if there are policy changes in future, with extended post-study work visas (STEM

Bachelor: 3 yrs; Master’s: up to 3 yrs; Doctorate: up to 4 yrs).Professional Pathways: The FTA establishes a new Temporary Employment Entry (TEE) Visa pathwaywith a quota of 5,000 visas for skilled Indiansfor stay upto 3 years. The sectors of interest to India include iconic occupations like AYUSH practitioners, Yoga Instructors, Indian Chefs, and Music Teachers). The other sectors of interest also include IT, Engineering, Healthcare, Education, and Construction.

Working Holiday Visa: 1,000 young Indians annually can avail multiple entry in New Zealand for a period of 12 months.

These provisions create unprecedented opportunities for Indian youth and professionals to gain global exposure.

Investment and Economic Co-operation

FDI Commitment: New Zealand will invest USD 20 billion in India, strengthening long-term economic ties.

Joint strategies to promote investment, research and innovation, technology flows, and skill development, particularly in renewable energy, digital services, and modern infrastructure, are fully covered.

A Rebalancing Clause is incorporated into the Agreement to provide a framework for addressing any shortfall in investment delivery, thereby ensuring robust and tangible economic outcomes.

Organic Primary Products: Mutual Recognition Arrangement between the two sides will be delivered in this agreement. Organic products which are expected to gain traction include Basmati rice, Flax seeds, Arabica Cherry AB, Psyllium husk (Isabgol), Soyabean oil cake, Organic Black Tea etc.

Technical Assistance: Cooperation has been agreed in AYUSH, audio visual industries, tourism, sports and traditional knowledge systems. The FTA promotes India’s AYUSH systems internationally, encourages medical value travel, and positions India as a global wellness hub.

Cultural & Traditional Knowledge A dedicated chapter on Culture, Trade, Traditional Knowledge, and Economic Cooperation advances mutual cooperation to enable and further both parties' peoples' economic and cultural aspirations.

Engagement with New Zealand’s indigenous Maori communities aims to promote cultural exchange and mutual respect. This strengthens India’s soft power and global recognition of its heritage.

Regulatory & Institutional Provisions

Intellectual Property Rights: Binding commitment by New Zealand to amend its laws within 18 months to provide EU-level protection for India’s Geographical Indications (GIs).

Product Specific Rules of Origin (PSRs): Agreement provides for a balanced and robust framework of Product Specific Rules of Origin (PSRs) for effectively prevent circumvention, misuse, or falsification of Rules of Origin criteria.

The Agreement includes dedicated Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) chapters that advance fast-tracking of market access applications on a reciprocal basis, simplify certification and import permit procedures, and provide for electronic SPS certification.

This would substantially enhance global market access, reduce transaction costs and facilitate smoother market access while ensuring the necessary health and safety protections.

Customs & Trade Facilitation: The FTA incorporates a comprehensive set of trade facilitation measures which include standard cargo clearance within 48 hours, with express shipments and perishable goods to be cleared within 24 hours. The Agreement also provides for Authorised Economic Operators, automation, and paperless single-window clearance systems. Thismodernizes customs procedures to ensure predictability, transparency and consistency in trade between trade partners.

Sectoral Highlights The India–New Zealand FTA secures duty free or preferential access across a wide range of sectors. These gains are expected to boost India’s exports, create jobs, and strengthen the competitiveness of Indian industries in the Oceania region.

Sector India’s Exports Tariff Coverage Impact & OpportunityAgriculture India’s global exports Elimination of Primary & Semi-Processed stood at USD 51.8 tariffs at peak 5% Vegetables: Dried onions, billion in 2024–25, up preserved vegetables, semi- from USD 48.3 billion processed inputs enhance access in 2023–24, 7.3% for fresh produce and horticultural growth. exports.

Oils, Fats & Niche Products:

Edible oils, confectionery, ice cream, protein products, animal Exports to New feed supports exports of niche, Zealand rose from premium, and value-added agri- USD 95.62 million in products.

FY 2023-24 to USD

108.21 million in FY Cereals: improves the global 2024-25. competitiveness of Indian grain exports.

Processed Foods: benefits exports of ready-to-eat and processed food products, strengthening India’s food processing sector.

Marine India’s global exports Zero-duty access under the FTA stood atUSD 7.0 billion supports higher market access and in FY25, up from USD export growth.

Pre-FTA peaks up

6.8 billion in FY24. to 5%, now reduced to zero The Agreement is expected to Exports to New benefit fishing communities and Zealand rose from marine product exporters, with USD 15.35 million to coastal states well-positioned to USD 15.89 million in gain.

the same period.

FTA is expected to strengthen shrimp exports while enabling diversification into a broader range of seafood products.Textiles & India’s global exports New Zealand’s imports of textiles Clothing stood atUSD 36.9 and clothing from the world billion in 2024–25, up averaged USD 2.2 billion Pre-FTA peak from annually.

tariffs were up to USD 34.8 billion in 10%, now fully 2023–24, 6.1% eliminated, to The sector is expected to generate growth. ensure Zero-duty significant employment across market access women workers and MSME units. They are expected to Exports to New benefit from the expanded market Zealand rose from access.

USD 98.14 million to USD 103.14 million for the same period.

Engineering India’s global exports New Zealand’s engineering Sector stood atUSD153.4 Pre-FTA average imports from the world averaged billion in FY2024-25. USD 23.3 billion. duty peaks up to 10%, now eliminated.

Exports to New Tariff removal will enhance price Zealandwas USD competitiveness and expand

136.34 millionin FY market access for Indian 2024-25, exporters.

FTA is expected to create jobs across manufacturing clusters and make Indian engineering goods more competitively priced.

Leather India’s global exports The move benefits leather stood atUSD 3.08 Pre-FTA peak manufacturers and artisans across billion in 2024–25 tariffs up to 10%, key producing states, with now reduced to opportunities for MSMEs and zero, covering both women workers engaged in the Exports to New intermediate and sector.

Zealand stood at USD finished products.

6.23 million in 2024– 25Footwear India’s global exports Pre-FTA peak The tariff removal is expected to stood atUSD 2.5 billion tariffs up to 10%, significantly improve price in 2024–25 now reduced to competitiveness and boost zero demand in the price-sensitive New Zealand market.

Exports to New Zealand stood at USD

2.28 million in 2024– 25 Sports Goods India’s global exports Pre-FTA tariffs up The Agreement is expected to stood atUSD 571 to 5%, now benefit sports goods million in 2024–25 reduced to zero manufacturers and workers, particularly in established production clusters.

Exports to New Zealand stood at USD

4.2 million in 2024–25 Pharmaceuticals India’s global exports New Zealand’s pharmaceutical stood at USD 24.5 Pre-FTA peaks up imports from the world averaged billion in 2024–25, up USD 1.4 billion in the last three to 5%, now from USD 22.1 billion years.

reduced to zero. in 2023-24, 10.8% The FTA streamlines access for growth. pharmaceuticals and medical devices by enabling acceptance of Exports to New GMP and GCP inspection reports Zealand stands at USD from comparable regulators.

57.51 million in 2024– These will reduce duplicative

25. inspections, lower compliance costs, and expedite product approvals.

Plastic &Articles India’s global exports Pre-FTA average The agreement is expected to thereof stood at USD 8.16 duty up to 5%, support greater penetration of billion in FY25. now eliminated. Indian exports, especially in cost-competitive and customised product segments.

Exports to New Zealand stands at USD

13.48 million during the same period.Gems & India’s global exports Pre-FTA tariff up The FTA eliminates these duties, Jewellery stood at USD 29.96 to 5%, now enhancing price billion in FY25. reduced to zero. competitiveness, particularly in finished and semi-finished jewellery segments.

Exports to New Zealand remain at The FTA is expected to benefit USD 16.91 million jewellery manufacturers and artisans, particularly in during the same period. established production hubs.

Electronics and India’s global exports Pre-FTA tariff up The FTA is expected to create Electrical stood at USD 77.53 to 5%, now employment opportunities Machinery billion in FY25. reduced to zero, across electronics and electrical covering all tariff manufacturing clusters.

lines, including Exports to New those currently Zealand remain at facing non-zero USD 68.26 million duties. during the same period.

Chemical and India’s global exports Pre-FTA tariff up The FTA supports diversification Allied Products stood at USD 64.04 to 5%, now into higher value-added billion in FY25. reduced to zero. segments such as specialty chemicals, organic intermediates, and advanced formulations.

Exports to New Zealand remain at USD 95.79 million during the same period.

State Wise Gains Under India-New Zealand FTA State Key Benefiting Nature of Expected Benefit from New Zealand Sectors Market Access Gujarat Petroleum Boost bulk exports from Jamnagar, Dahej, Surat; products, improved margins and diversification into high-value Chemicals, chemicals and finished jewellery.

Plastics, Gems &Jewellery Maharashtra Pharmaceuticals, Zero tariffs to enhance exports from Mumbai, Pune, Auto components, Nashik; stronger integration into global value chains Processed food, and boost to generics & automotive sectors ChemicalsPunjab Basmati rice, Removal of 5–10% tariffs to expand agri-based exports Processed food, and MSMEs (Jalandhar); boost to premium food Sports goods, exports and rural employment Hand tools Haryana Automobiles, Improved competitiveness (2-4% tariffs removed);

Auto components, benefits to Gurugram and Manesar auto cluster and Basmati rice agri-manufacturing linkages Uttar Pradesh Leather goods, High tariff removal (6-10%) to boost exports from Carpets, Kanpur, Moradabad, Bhadohi; strong gains for MSMEs Handicrafts and artisan-based sectors Tamil Nadu Textiles, Apparel, Major gains from removal of 8-10% tariffs; expansion Leather, Auto of Tiruppur and Coimbatore textile cluster; improved components global competitiveness Delhi (NCT) Machinery, MSMEs to benefit from tariff elimination (2-4%);

Electrical goods, strengthened regional value chains across NCR (Noida, Chemicals Gurugram, Faridabad) Karnataka Pharmaceuticals, Boost to agri + high-tech exports; zero tariffs improve Coffee, competitiveness of coffee and Bengaluru-based Electronics, electronics exports Machinery West Bengal Tea, Engineering Higher export realisation for Darjeeling tea; MSME goods, Machinery engineering clusters to benefit from tariff removal (2– 6%) Madhya Pradesh Oilseeds, Improved value addition and export realisation; stronger Processed food, agro-processing and rural income gains Metal products Andhra Pradesh Marine products, Significant boost to shrimp & seafood exports; higher Fruits, Pharma value realisation for processed marine products and pharma Rajasthan Gems &Jewellery, Export growth from Jaipur clusters; improved Textiles, Stone competitiveness in niche global markets due to tariff products removal Telangana Pharmaceuticals, Strengthening of Hyderabad pharma hub; enhanced Chemicals, global supply chain integration and agri-export Turmeric diversificationKerala Spices, Marine Higher demand for pepper, cardamom; boost to value- products, Coir, added spice exports and coastal livelihoods Processed food Goa Marine products, Expansion into premium export markets; improved Cashew, Minerals value addition in seafood and cashew processing Bihar Agro-based Reduction in tariffs can boost exports of niche agri- products (rice, products like makhana and litchi, along with value- maize, makhana, added processed foods; expansion of Bhagalpur silk and litchi), Textiles Madhubani art into premium international markets;

(Bhagalpuri silk), improved income for MSMEs and rural artisans;

Leather & stronger agro-processing ecosystem and diversification footwear, of export basket.

Handicrafts (Madhubani paintings), Processed food Odisha Marine products, Better margins in metal exports; support for coastal Metals livelihoods and downstream processing (aluminium, steel) Himachal Pradesh Pharmaceuticals, Boost to Baddi, Nalagarh , Solan pharma cluster and Woollen traditional wool-based products in Kullu and Kinnaur;

improved export competitiveness Chhattisgarh Iron & steel Enhanced export viability and value addition in metal products industries Uttarakhand Pharmaceuticals, Growth in industrial clusters (Haridwar, Dehradun);

Plastics, improved export competitiveness Machinery Jharkhand Iron & steel, Stronger integration into global metal value chains Copper products Puducherry Pharmaceuticals, MSME manufacturing to benefit from improved market Rubber products access and export scaling Chandigarh Machinery, Tools Boost to MSME engineering exports and niche manufacturing value chains Jammu & Kashmir Handicrafts, Enhanced global visibility and exports of carpets, Saffron, apples, walnuts; support to rural livelihoods HorticultureArunachal Pradesh, Tea, Bamboo Improved access for niche and GI products; gradual Assam, Manipur, products, Organic integration into global markets and rural development Meghalaya, Mizoram, agriculture, Spices Nagaland, Tripura, Sikkim Conclusion The India–New Zealand Free Trade Agreement reflects a defining moment in India’s trade diplomacy, opening new avenues for comprehensive economic cooperation. By securing improved market access for Indian goods, expanding opportunities in services and mobility, and deepening collaboration in agriculture, investment and emerging sectors, the Agreement delivers tangible and wide- ranging benefits across the economy.

From farmers and MSMEs to students and skilled professionals, the gains from this Agreement are expected to be broad-based, reinforcing India’s position as a trusted, forward-looking global partner and advancing the vision of a globally integrated Viksit Bharat 2047.

References Ministry of Commerce and Industry

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2207300&lang=2®=3

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https://www.pib.gov.in/PressReleasePage.aspx?PRID=2236134®=3&lang=1 International Trade Administration

https://www.trade.gov/free-trade-agreement-overview PIB Achieves

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