India and New Zealand concluded a comprehensive Free Trade Agreement (FTA) on December 22, marking a major milestone in India’s economic engagement with the Indo-Pacific region. New Zealand Prime Minister Christopher Luxon described the deal as “landmark,” highlighting its potential to generate more jobs, higher incomes, and boost exports to the Indian market.
Negotiations for the FTA began on March 16, 2025, and were concluded after five formal rounds, including in-person and virtual discussions. The agreement establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, strengthens MSME participation, and fosters trade and investment-led growth.
Under the FTA, India gains duty-free access on 100 percent of tariff lines, enhancing the competitiveness of labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles. The deal is expected to directly benefit Indian workers, artisans, women, youth, and MSMEs, integrating them deeper into global value chains.
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The agreement also provides New Zealand’s most ambitious service commitments in any FTA, covering IT and IT-enabled services, professional services, education, tourism, financial services, and construction. A new Temporary Employment Entry Visa pathway will allow up to 5,000 Indian professionals in high-demand sectors, including AYUSH, IT, healthcare, engineering, and education, to work in New Zealand for up to three years.
Apart from tariff liberalisation, the FTA addresses non-tariff barriers through enhanced regulatory cooperation, streamlined customs, and technical measures to ensure effective market access. Bilateral trade has shown steady growth, with merchandise trade reaching USD 1.3 billion in 2024-25 and total trade in goods and services at USD 2.4 billion, creating a stable framework to unlock the full potential of the India-New Zealand economic relationship.
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