Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon jointly announced the agreement, describing it as comprehensive, balanced and forward-looking. The Prime Minister’s Office said the FTA would act as a catalyst for higher trade, investment, innovation and people-to-people links between the two countries.
The India–New Zealand FTA is the third trade pact concluded by New Delhi this year. The government said the agreement is people-centric and jobs-driven, with benefits spread across exporters, MSMEs, farmers, students, professionals and manufacturers.
Key highlights of the India–New Zealand FTA
Zero-duty access for India
- New Zealand to provide zero-duty market access on 100% of India’s exports
- Major gains for textiles, apparel, leather, footwear, engineering goods, pharmaceuticals and farm products
Also Read: India concludes FTA talks with New Zealand, cuts tariffs on 95% Kiwi goods
Tariff cuts for New Zealand
- India to liberalise tariffs on 70% of tariff lines
- Covers nearly 95% of bilateral trade
Services and market access
- New Zealand offers access in 118 services sectors
- MFN treatment extended in 139 sub-sectors
- Includes IT, professional services, telecom, construction, tourism and education
Student mobility
- No numerical caps on Indian students
- Post-study work rights: Up to 3 years for STEM bachelor’s and master’s graduates; Up to 4 years for doctoral scholars
Jobs and professional visas
- Temporary Employment Entry Visa for 5,000 Indian professionals
- Covers AYUSH practitioners, yoga instructors, chefs, music teachers
- Includes IT, engineering, healthcare, education and construction
- 1,000 work and holiday visas annually
Also Read: New Zealand to ease work visas and student mobility for Indians under FTA
Investment push
- New Zealand to facilitate $20 billion investment into India over 15 years
Agriculture cooperation with safeguards
- Centres of Excellence for apples, kiwifruit and honey
- Focus on productivity, research and farmer incomes
- Sensitive items like dairy, sugar, spices, edible oils excluded from market access
Support for manufacturing
- Duty-free inputs such as wooden logs, coking coal, metal waste and scrap
Pharma and medical devices
- Faster regulatory approvals through acceptance of global inspection reports
The government said the agreement provides a stable framework to expand bilateral trade, which stood at about $2.4 billion in 2024, and strengthens India’s push to emerge as a globally competitive and resilient economy by 2047.