India and New Zealand signed a Free Trade Agreement (FTA) on April 27, 2026, providing Indian exporters with full market access to New Zealand. Earlier, in March 2025, the two countries had announced the launch of negotiations for the agreement, which were concluded swiftly by December 2025, marking one of India’s fastest-negotiated FTAs. The agreement reflects a shared intent to deepen economic ties and deliver commercially meaningful outcomes within a short timeframe.
For foreign entities, the India–New Zealand FTA enhances market access and tariff preferences, positioning New Zealand as a strategic entry point into the wider Oceania and Pacific Island markets. Beyond goods trade, the agreement signals growing opportunities in services and skilled mobility, reinforcing India’s role as a reliable source of talent across priority sectors.
The FTA also lays the foundation for future collaboration in emerging and specialised areas, including AYUSH, wellness, and services such as Yoga instruction, culinary expertise, and creative professions. Collectively, it underscores India’s evolving trade strategy, one that aligns market access with services, skills, and long-term economic cooperation.
Tracing Growth in India-New Zealand Trade Relations
India and New Zealand have developed a steadily deepening trade relationship, positioning New Zealand as India’s second-largest trading partner in Oceania and 11th-largest two-way trading partner globally. While bilateral trade remains selective in scale, its strategic importance has grown alongside stronger commercial and demographic linkages between the two economies.
In 2023–24, total bilateral trade reached USD 1.75 billion, reflecting sustained engagement across goods and services. This growth is reinforced by New Zealand’s profile as a high-income, globally integrated economy, with a per capita income of USD 49,380 and total imports and exports of USD 47 billion and USD 42 billion, respectively, in 2024. For foreign enterprises, this underscores New Zealand’s role as a stable and sophisticated market within the Oceania region.
New Zealand’s strong outward investment orientation further strengthens the bilateral dynamic. With nearly 8 per cent of GDP invested overseas annually and total offshore investments valued at USD 422.6 billion as of March 2025, the country represents a meaningful source of global capital and long-term partnerships for emerging markets such as India.
Complementing trade and investment flows, a 300,000-strong Indian diaspora, accounting for nearly 5 per cent of New Zealand’s population, acts as a durable economic and cultural bridge. This community supports demand for Indian goods and services while facilitating business continuity, talent mobility, and cross-border collaboration, providing a robust foundation upon which the FTA builds.
Key Benefits of India-New Zealand FTA
The India–New Zealand Free Trade Agreement delivers a large set of advantages designed to deepen trade, facilitate services, and support cross-border investment. The elements of the FTA not only improve predictability but also improve access, long-term operating viability across both markets. The benefits outlined below frame the core outcomes of the FTA:
Tariff Liberalisation
The India–New Zealand FTA establishes a calibrated tariff framework that balances full export access with domestic safeguards. From Entry into Force, 100 % of Indian exports receive duty-free access into New Zealand, providing immediate certainty and competitiveness for Indian manufacturers and exporters.
India, in turn, has offered market access across 70.03% of its tariff lines, while 29.97% remain in the exclusion list to protect sensitive sectors. Of the liberalised lines, 30% will see immediate duty elimination, covering products such as wood, wool, sheep meat, and raw leather hides. A further 35.60% of tariff lines will be phased out over 3, 5, 7, and 10 years, including petroleum oils, malt extracts, vegetable oils, selected electrical and mechanical machinery, and peptones. An additional 4.37% of products will be subject to tariff reductions, spanning wine, pharmaceutical products, polymers, aluminium, and iron and steel articles, while 0.06% will fall under tariff rate quotas, including honey, apples, kiwi fruit, and albumins such as milk albumin.
India has expressly excluded key sensitive products, including dairy and dairy derivatives, most animal products, select agricultural commodities, sugar, fats and oils, arms and ammunition, gems and jewellery, and certain copper and aluminium products. For foreign enterprises, this structure delivers clear timelines, predictable access, and a balanced liberalisation pathway aligned with long-term trade and sourcing strategies.
Mobility and Education
The FTA introduces a structured and predictable framework for talent mobility, with direct relevance for companies seeking access to skilled and globally mobile professionals. For the first time, New Zealand has signed an Annexe on Student Mobility and Post-Study Work Visas, providing long-term policy certainty. Indian students are permitted to work up to 20 hours per week during studies, with assured post-study work options of up to three years for STEM bachelor’s and master’s graduates and up to four years for doctoral graduates, strengthening the future talent pipeline for employers.
In parallel, the agreement establishes dedicated professional pathways, including a quota of 5,000 visas for skilled Indian professionals for stays of up to three years across priority sectors such as IT, engineering, healthcare, education, and construction, alongside recognised Indian professions including AYUSH practitioners, yoga instructors, chefs, and music teachers. Additionally, a Working Holiday Visa quota of 1,000 places annually enables short-term mobility and early-career exposure. Collectively, these provisions enhance workforce planning flexibility and support cross-border talent strategies for enterprises operating across India and New Zealand.
Services
The FTA delivers New Zealand’s most comprehensive services market access offer to date, reinforcing the agreement’s relevance for services-led enterprises. Commitments have been undertaken across 118 service sectors, providing enhanced certainty and non-discriminatory treatment for Indian service providers. In addition, Most-Favoured Nation treatment has been extended across 139 sectors, ensuring that any future liberalisation offered to other trading partners is automatically available to India.
Investment and Market Access Gains
The FTA is anchored by a long-term investment commitment, with New Zealand set to invest USD 20 billion in India over a 15-year period, reinforcing confidence in India’s growth trajectory and operating environment. For foreign enterprises, this commitment signals deeper capital integration and expanded opportunities across manufacturing, infrastructure, and services-led sectors.
On market access, New Zealand has offered immediate zero-duty access on 100 per cent of its tariff lines (8,284 lines) from Entry into Force, materially improving competitiveness for Indian exporters. Tariffs of around 10 per cent previously applied on approximately 450 key export lines, including textiles and apparel, leather and headgear, ceramics, carpets, automobiles, and auto components, will be eliminated, with New Zealand’s average applied tariff of 2.2% reducing to zero. Collectively, these measures enhance trade efficiency, improve margins, and support scalable cross-border expansion for businesses operating between India and New Zealand.
Gains for Agro-Tech
The FTA introduces targeted agri-technology cooperation, with New Zealand agreeing to focused Action Plans for kiwifruit, apples, and honey aimed at improving productivity, quality, and grower capabilities in India. Cooperation includes Centres of Excellence, access to improved planting material, grower training, and technical support across orchard management, post-harvest practices, supply chains, and food safety.
These initiatives are aligned with controlled market access for select New Zealand agricultural products, including apples, kiwifruit, and Manuka honey, through a Tariff Rate Quota framework supported by minimum import prices and seasonal restrictions. Oversight by a Joint Agriculture Productivity Council ensures that technology transfer and market access progress in tandem, balancing consumer choice with protection of sensitive domestic agricultural sectors.
Need Expert Guidance?
Get professional support to simplify your business decisions.
Conclusion
The India–New Zealand Free Trade Agreement marks a strategically significant step in India’s evolving trade architecture, delivering clear and commercially relevant outcomes across goods, services, investment, and mobility. For foreign business leaders, the agreement provides improved market access, reduced tariff barriers, and a predictable operating framework that supports long-term planning and cross-border expansion.
By combining full duty elimination on Indian exports with calibrated domestic protections and forward-looking cooperation in priority sectors, the FTA strengthens India’s position as a competitive manufacturing base, services hub, and talent partner. As implementation progresses, the agreement is poised to deepen bilateral integration, enhance supply chain linkages, and create sustained opportunities for enterprises engaging with both the Indian and New Zealand markets.
