Also read: India unveils a power-packed FTA calendar: UK, Oman, New Zealand deals next
This marks one of the fastest trade deals sealed by New Delhi, which was initiated in March 2025, and concluded within nine months. Prime Minister Narendra Modi and Luxon jointly unveiled the agreement, describing it as comprehensive, balanced and future-oriented.
According to an official cited by PTI, the trade pact could provide tariff-free access for Indian goods in the New Zealand market and attract up to $20 billion in investment over the next 15 years.
Earlier in December, Luzon said that the FTA with India will translate into more jobs, higher incomes and a sharp rise in exports, calling it a promise delivered within his government’s first term as it opens New Zealand businesses to India’s vast consumer base.
“We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers,” he said in a post on X, under the tagline “Fixing the Basics. Building the Future.”
India-New Zealand FTA: What’s inside?
Under the trade pact, New Zealand is said to provide zero-duty access on all India’s exports, delivering significant opportunities for key sectors such as textiles and apparel, leather and footwear, engineering goods, pharmaceuticals and agricultural products. India will liberalise tariffs on around 70 percent of its tariff lines, covering nearly 95 percent of bilateral trade with the Kiwis.The trade agreement is not confined to goods trade as New Zealand offers market access in 118 services sectors and extended MFN treatment in 139 sub-sectors, including IT, professional services, telecom, construction, tourism and education.
For Indian students willing to study abroad, the trade pact promises that students will face no numerical caps, with post-study work rights of up to three years for STEM graduates and up to four years for doctoral scholars.
The India-NZ FTA also provides for a Temporary Employment Entry Visa for 5,000 Indian professionals across fields such as IT, engineering, healthcare, education and construction, along with dedicated categories for AYUSH practitioners, yoga instructors, chefs and music teachers. Alongside this, the government will also issue 1,000 work-and-holiday visas annually.
On the investment front, the New Zealand government has committed to facilitate investments worth $20 billion into India over the next 15 years. The trade agreement also includes cooperation in agriculture through Centres of Excellence for honey, apples, and kiwifruit while safeguarding sensitive sectors by excluding items such as dairy, sugar, spices and edible oils from market access commitments.
The trade pact also comprises support measures for manufacturing, including duty-free access to key inputs like wooden logs, coking coal, and metal waste and scrap.
Pharmaceutical and medical device companies are also set to benefit from faster regulatory approvals through acceptance of global inspection reports by regulators such as the US FDA, EMA and UK MHRA.