India and New Zealand Seal Landmark Free Trade Agreement
New Delhi, December 22, 2025 – In a significant boost to bilateral economic ties, India and New Zealand have concluded negotiations for a comprehensive and mutually beneficial Free Trade Agreement (FTA), announced jointly by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon during a telephone conversation on Monday.
The landmark deal, reached in a record nine months since formal negotiations were launched in March 2025, provides zero-duty access for 100% of Indian exports to New Zealand, while India will eliminate or reduce tariffs on approximately 95% of New Zealand’s exports, with more than half becoming duty-free immediately upon implementation.
Key Highlights of the India-New Zealand FTA:
- Market Access for India: All Indian goods, including labour-intensive sectors like textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, automobiles, and pharmaceuticals, will enjoy duty-free entry into New Zealand.
- Benefits for New Zealand: Tariff reductions on key exports such as wool, wine, kiwifruit, apples, timber, and forestry products. The deal is expected to increase New Zealand’s annual exports to India by $1.1–1.3 billion.
- Protection for Sensitive Sectors: India has safeguarded its domestic farmers by excluding market access for sensitive agricultural products, including dairy, milk products, cheese, onions, sugar, spices, edible oils, and rubber.
- Trade and Investment Goals: Bilateral merchandise trade stood at approximately $1.3 billion in 2024–25, with total goods and services trade reaching $2.4 billion. The FTA aims to double bilateral trade within five years. New Zealand has committed to facilitating $20 billion in investments into India’s manufacturing, infrastructure, and innovation sectors over the next 15 years.
- People-to-People Ties: Enhanced mobility for Indian professionals, skilled workers, and students, including new visa pathways and working holiday visas. The agreement also secures wide-ranging commitments in services sectors like IT, education, tourism, and professional services – New Zealand’s most ambitious services offer in any FTA to date.
Prime Minister Modi described the agreement as “historic and ambitious,” stating, “The India-NZ partnership is going to scale newer heights. The FTA sets the stage for doubling bilateral trade in the coming 5 years. India welcomes investment worth over USD 20 billion from New Zealand across diverse sectors.”
New Zealand Prime Minister Luxon echoed the sentiment, noting that the deal would create more jobs and opportunities for Kiwis while providing access to India’s fast-growing market of 1.4 billion consumers.
This is India’s third FTA concluded in 2025, following agreements with the United Kingdom and Oman, underscoring New Delhi’s push to diversify exports and strengthen global trade partnerships amid evolving economic challenges.
The agreement is expected to be formally signed in the first half of 2026 after legal review and will come into force shortly thereafter.
This FTA not only strengthens economic cooperation but also deepens the longstanding friendship between the two nations, built on shared democratic values and people-to-people connections – a boon for the global Indian diaspora, including NRIs in New Zealand.
