India-New Zealand FTA signed: $20 billion investment, 5,000 visas and duty-free access

India and New Zealand signed their historic Free Trade Agreement on Monday, April 27. The agreement was inked after teams from New Delhi and Wellington completed negotiations in December 2025.

The agreement covers 20 chapters, including trade in goods, remedies, dispute settlement, legal provisions, and more.

India, New Zealand ink historic deal

Following the signing of the FTA, Union Minister of Commerce and Industry Piyush Goyal stated that the deal between India and New Zealand was concluded in nine months, adding that the pace reflects “depth of trust and shared ambition between our nations.”

“Signing of this FTA marks another defining milestone in India’s engagement with the developed world and brings us closer to PM Modi’s vision of Viksit Bharat 2047,” adding that the FTA with Wellington is the seventh trade agreement the minister has signed in nearly four years.

Prime Minister Narendra Modi has also hailed the signing of the FTA, stating that the agreement will benefit Indian farmers, youth, women, MSME’s, artisans, startups, students and innovators. The FTA, Modi added, will “open new avenues for growth, create opportunities and deepen our synergy across sectors.”

New Zealand’s Prime Minister Christopher Luxon also stated that the FTA with India will open a new and “dynamic” market for the country.

“This deal will help diversify New Zealand’s export markets, support the goal of doubling the value of our exports over 10 years, and put New Zealand exporters on a more level playing field with competitors already enjoying preferential access in India,” Luxon wrote on X.

With benefits underlined for both India and New Zealand, here’s a detailed look at the FTA.

India-New Zealand FTA | Key points

• Based on the fact sheet issued by both governments, New Zealand has committed to a $20 billion investment over the next 15 years.
• Another key feature of the FTA is that it eliminates 100 per cent of the duty on Indian exports to New Zealand.
• The FTA will also allow temporary employment for Indian professionals in New Zealand. Under the FTA, Opens Skilled Employment Pathways, at least 5,000 visas, called the ‘Temporary Employment Entry Visa’, will be guaranteed for Indian professionals in skilled occupations, with a stay of up to three years.
• Duty-free wine and spirits from India and wines from New Zealand will enter the domestic market at concessional duties, which will be gradually reduced over 10 years.
• Indian goods, including labour-intensive sectors such as textiles, plastic items, leather, and engineering goods, will enter New Zealand at zero duty.
• Meanwhile, India has opened 70.03 per cent of its tariff lines to New Zealand, which covers 95 per cent of current imports.
• The Oceanic country is expected to benefit from exports of its wool, wine, wood, coal and fruits such as avocados and blueberries.
• The FTA will also allow cooperation in agriculture and include a plan to support Indian farmers in growing kiwis and apples, as well as in the production of honey.

FTA with New Zealand a win for India, say experts

As per Agneshwar Sen, Trade Policy leader, EY India, the free trade agreement is expected to greatly benefit New Delhi.

“New Zealand’s offer to eliminate duties on 100% of its tariff lines on entry into force of the agreement, covering all 8,284 lines, means Indian goods in textiles, apparel, leather, pharmaceuticals, machinery, and auto components enter New Zealand duty-free, erasing an average applied tariff of 2.2%,” said Sen.

Sen also stated that the FTA will also open “mobility pathways for Indian professionals in IT, healthcare, engineering, and education” with the new work visa scheme for Indians.

“With merchandise exports to New Zealand already on an upward trend, this FTA provides the policy certainty and assured market access to sustain that momentum,” Sen added further.

Meanwhile, as per Vikram Gandotra, President of The Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the FTA between India and New Zealand marks “a strategic entry point for Indian electrical equipment manufacturers into a high-value developed market, while strengthening India’s role in Indo-Pacific supply chains.”

“With New Zealand already importing over US$25 million in critical equipment like transformers and cables from India, the immediate elimination of duties on select items, paired with a long-term tariff reduction roadmap, provides our manufacturers with a decisive competitive edge,” Gandotra added further.

Nirmal K Minda, president of Associated Chambers of Commerce and Industry of India (ASSOCHAM), the trade agreement marks a milestone in India’s “liberalised trade regime.”

“With 100% duty-free market access for Indian exports and a proposed USD 20 billion investment commitment by New Zealand over 15 years will strengthen bilateral trade and investments trajectory,” the ASSOCHAM president said.

Source: https://www.hindustantimes.com/