Announced jointly by PM Modi and New Zealand PM Christopher Luxon, this agreement is the seventh FTA negotiated by the Modi government and the third major trade pact concluded in 2026, following agreements with the UK and Oman. Significantly, all these FTAs are with developed economies with substantially higher per-capita incomes than India, underscoring India’s growing strength and credibility.
Jobs, Growth and Market Access
A central pillar of this FTA is job creation. New Zealand will provide zero-duty access to 100% of Indian exports, delivering a major boost to India’s labour-intensive sectors such as textiles, leather, apparel, footwear, marine products, gems and jewellery, handicrafts and engineering goods. This benefits Indian workers, artisans, women entrepreneurs, youth and MSMEs.
Also Read: What each side stands to gain
India has also secured its best-ever market access and services offer, covering 118 services sectors, including telecom, construction, IT, financial services, travel and tourism. This expanded access will generate large-scale employment and new growth avenues for Indian professionals and businesses.
Opportunities for Pros, Students
The agreement provides improved entry and stay provisions for Indian professionals and students. It enables work opportunities during studies, post-study employment, and a structured working-holiday visa framework. STEM graduates and post-graduates can now work for up to three years, while doctoral scholars can work for four years. A new Temporary Employment Entry Visa further supports skilled Indian professionals.Farmers to Flourish
PM Modi’s vision is clear: Indian farmers must play a meaningful role on the global stage. The FTA reflects this.
The agreement establishes an Agricultural Productivity Partnership covering apples, kiwi and honey, aimed at enhancing domestic productivity and increasing farmer incomes. New Zealand has also committed to GI-level protection for Basmati rice, offering strong support to Indian farmers.
Crucially, India has ensured that sensitive sectors such as rice, dairy, wheat, soya and other key agricultural products remain fully protected, with no market opening that could harm domestic livelihoods.
Innovative FTAs, Investment pledges
India’s FTAs today go well beyond tariff reductions. They are instruments to unlock new opportunities for farmers, MSMEs, women and youth, while safeguarding national interests.
With various trade pacts, Indian exports benefit from immediate or rapid tariff elimination, while India’s own market opening remains calibrated and gradual. New Zealand has committed FDI of $20 billion over 15 years, mirroring the innovative investment-linked provisions in India’s FTA with EFTA countries-Switzerland, Norway, Iceland and Liechtenstein.
For New Zealand, this marks a giant leap in FDI in India. In past 25 years, New Zealand invested about ₹643 crore in India. The new commitment-₹1.8 lakh crore over 15 years-represents a dramatic expansion, backed by a clawback mechanism if investment targets are not met. Much of this investment will aid agriculture, dairy, MSMEs, education, sports and youth development, ensuring inclusive growth.
India’s First Women-Led FTA
This agreement also marks a historic milestone: It is India’s first women-led FTA. Almost the entire negotiating team-from the chief negotiator and deputy chief negotiator to leads for goods, services, investment and our ambassador to New Zealand-comprised women. Our women of substance are increasingly playing leadership roles in the PM’s development agenda.
India’s FTA Strategy
The India-New Zealand FTA exemplifies India’s clear strategy: Partnering with developed economies that open their markets to India’s labour-intensive industries without competing unfairly with Indian products.
Trade agreements under the Modi government are not transactional- they are part of a broader mission to strengthen the economy and improve the lives of Indians, especially the poorest of the poor. This strategy has transformed India from being labelled among the “Fragile Five” in 2014 to becoming a preferred partner for trade and investment worldwide.
Today, India negotiates from a position of confidence and strength, ensuring that agriculture, dairy and other sensitive sectors are fully protected, and that agreements are signed only when they deliver mutual benefit.
Change in Trade Governance
India’s current approach stands in sharp contrast to the past. Earlier trade strategies recklessly exposed Indian markets to low-cost imports, endangered small businesses and jobs- often without adequate consultation. The decisive leadership of PM Modi has restored India’s stature, credibility, and negotiating power on the global stage. The India-New Zealand FTA, applauded across Indian industry, is a product of this refreshing change in governance since 2014.