India, April 27 -- The Government of India has issued a release:
India and New Zealand today signed the India- New Zealand Free Trade Agreement (IN- NZ FTA) at Bharat Mandapam, New Delhi, under the vision and leadership of Hon'ble Prime Minister Shri Narendra Modi to strengthen India's global economic partnerships. The Agreement was signed by Union Minister of Commerce and Industry Shri Piyush Goyal and New Zealand's Minister for Trade and Investment Hon. Todd McClay.
The signing of the India-New Zealand Free Trade Agreement marks a new and significant chapter in the bilateral relationship, reflecting shared ambition, deepening engagement, and a commitment to mutually beneficial growth said Mr. McClay.
Speaking on the signing, Mr. McClay called the India-New Zealand Free Trade Agreement a "once-in-a-generation" opportunity that will boost exports, create jobs, and strengthen bilateral economic ties. He highlighted strong participation from New Zealand businesses at the signing and said the pact will improve market access, reduce trade barriers, and support MSMEs. He also emphasised deep people-to-people links, including the Indian diaspora's contribution in New Zealand, and longstanding cultural and sporting ties. Describing India as a key partner in a changing global landscape, he expressed confidence that the agreement will deepen cooperation and deliver shared prosperity.
Union Minister for Commerce and Industry Shri Piyush Goyal said "The India-New Zealand Free Trade Agreement marks a defining milestone in India's engagement with the developed world. It reflects Prime Minister Narendra Modi's vision of global economic partnerships for our farmers, women, youth, artisans and entrepreneurs. This is India's 9th Agreement in the past few years- with 38 developed countries. At the heart of the agreement is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services. The investment commitment of USD 20 billion from New Zealand signals strong confidence in India's growth story. It places special emphasis on strengthening MSMEs, fostering innovation, and enabling women-led enterprises to thrive in global markets."
Shri Piyush Goyal said the India-New Zealand Free Trade Agreement was concluded in nine months and marks a key milestone in India's engagement with developed economies, aligned with the vision of Viksit Bharat 2047. He noted that India is signing its seventh FTA in the last three and a half years, with plans for agreements with the European Union and the United States, taking the total to nine FTAs with 38 advanced economies, covering nearly 65-70% of global GDP. He also highlighted expected US$20 billion investment inflows under the agreement and said New Zealand has opened access in 118 sectors, with MFN commitments in 139 sectors.
The signing ceremony brought together businesses and industry leaders from both countries, with Trade and Investment Minister Todd McClay leading a cross-party delegation of Members of Parliament and over 30 New Zealand businesses.
The negotiations were officially launched on March 16, 2025 on the eve of the Bilateral meeting of Hon'ble Prime Minister of India, Shri Narendra Modi and the Prime Minister of New Zealand, Rt Hon Christopher Luxon. This agreement is anchored on deep people-to-people connections and a partnership between vibrant democracies for advancing trade, economic cooperation, and strategic engagement across the Indo-Pacific. The merchandise bilateral trade between Oceania and India stood at approximately USD 26 billion in 2024-25. New Zealand is India's second-largest trading partner in the Oceania region, with bilateral trade valued at around USD 1.3 billion. With the coming into force of the India-New Zealand Free Trade Agreement, bilateral trade is expected to witness further growth, supported by enhanced market access, greater trade facilitation, and deeper economic engagement between the two countries.
Through five formal rounds of negotiations and several intersessions, both sides concluded the Agreement on 22 December 2025, just nine months after launch, making it one of the fastest FTAs concluded by India with a developed country.
In a message Commerce Secretary Shri Rajesh Agrawal, said that "The India-New Zealand FTA marks a new era in our economic partnership, one marked by trust and complementary strengths. India now has a level playing field for exports to New Zealand. The FTA broadens its scope to agriculture productivity, organics, services, mobility, Ayush, and pharma access making the opportunities all-inclusive and future-oriented. The agreement gives a strong competitive push to India's labour-intensive sectors. India's exporters now have zero-duty access to New Zealand and the broader regional trade ecosystem. Indian exporters can operate with greater scale, and diversification in the Indo-Pacific. The deal offers predictability in today's uncertain world"
The India-New Zealand Free Trade Agreement was signed under the visionary leadership of Hon'ble Prime Minister Narendra Modi. The India - New Zealand Free Trade Agreement represents a new generation of strategic trade partnership, comprehensive, inclusive, confident, calibrated and rooted in national interest. Under the leadership of Prime Minister Shri Narendra Modi, India is forging partnerships with developed economies that deliver real market access for our labour-intensive sectors and holistic economic partnerships. This FTA stands as a testament to a new approach, where trade will drive jobs, empower youth, women and MSMEs, and align seamlessly with the vision of inclusive growth and economic resilience on the path to Viksit Bharat 2047. The FTA will enter into force after the completion of all domestic procedures and ratification in both countries.
Productivity to Prosperity for People: Tariffs, Talent, Transformation for Viksit Bharat 2047
Trade in Goods: Unprecedented 100% Duty-Free Access to New Zealand Market on entry into force
Calibrated Market access and sensitive Sectors Protected
Advancing Agricultural productivity Partnership, Farmer incomes and Rural Economies
Services: Best-Ever Offer by New Zealand empowers our Youth, Women and Professionals
Opening Skilled Employment Pathways and Global Experiences:
Enhanced Mobility Pathways for Indian Professionals, Students and Youth
Investment: USD 20 Billion Commitment for our innovators, industry and start up ecosystem
Market Entry fast tracked in a developed market for Pharmaceuticals and Medical Devices: Major Breakthrough
Intellectual Property Rights
Boosting MSMEs, Women Entrepreneurs, Incubators and Global Value Chain Integration
Rules of Origin: A Balanced and Robust Framework
Trade Remedies: Safeguarding India's Domestic Industry
Fast track mechanism for imports used for export manufacturing, Customs Procedure and Trade Facilitation:
Smart Regulation for Safe and Seamless Trade: Sanitary and Phytosanitary Measures
Pioneering Economic Cooperation and Technical Partnership
Cultural Trade, Traditional Knowledge and People-to-People Cooperation: A first in FTAs
Organics trade through Mutual Recognition Arrangement: A gateway to the Indo Pacific
Bilateral Trade: Strong Momentum, Vast Potential
From Farms, Fisheries to Factories: Deal power Key Sectors and States
Zero-duty market access will significantly boost India's key export sectors. Textiles and clothing, a cornerstone of exports, will see higher growth and job creation across apparel, home furnishings, fibres, and handloom products. Agriculture and processed foods will become more competitive with tariff elimination on products such as fruits, spices, cereals, coffee, and cocoa. Leather and footwear will gain from the removal of peak duties, strengthening India's global position. At the same time, engineering, manufacturing, and industrial sectors-including machinery, automotive, electronics, chemicals, plastics, and rubber-will benefit from tariff reductions, reinforcing India's diversified export base and deeper integration into global value chains.
At the state level, the India-New Zealand FTA is set to deliver broad-based gains, reflecting the diverse and specialised nature of India's export landscape. Key exporting states-from Gujarat's chemicals and gems, Maharashtra's pharmaceuticals and auto components, and Tamil Nadu's textiles, leather and auto components, Uttar Pradesh's leather, carpets and handicrafts, Punjab's agri products, Karnataka's pharma and electronics, and West Bengal's tea and engineering goods-are poised to benefit from improved price competitiveness. Coastal states like Andhra Pradesh and Kerala are likely to see higher value from marine exports, while the North-East could gain better market access for tea, spices, bamboo, and organic produce. Overall, the agreement is expected to further diversify and deepen India's export profile.
Disclaimer: Curated by HT Syndication.
