New Delhi: In a major move to deepen its Indo-Pacific footprint, India on Monday announced the conclusion of a landmark Free Trade Agreement (FTA) with New Zealand. The agreement, described as one of India’s fastest-concluded trade deals with a developed nation, was finalized within nine months of its March 2025 launch.
Zero-Duty Access & Defensive Interests
The pact provides zero-duty market access for 100% of India’s exports, offering a massive boost to labor-intensive sectors such as textiles, leather, gems and jewellery, and engineering goods. Conversely, India has offered tariff liberalization on 70% of its lines, covering 95% of bilateral trade.
Crucially, the Indian government has maintained its “red lines” on sensitive agricultural products. To protect domestic farmers, the agreement excludes dairy, coffee, sugar, spices, and edible oils from market access. Limited access for apples, kiwifruit, and honey will be managed through strict quotas and minimum import prices.
The ‘Talent & Mobility’ Pillar
A standout feature of the deal is the focus on “talent mobility”. New Zealand has offered its best-ever services and mobility package to India, including:
- Post-Study Work Rights: Up to 3 years for STEM Bachelor’s and Master’s graduates, and 4 years for Doctoral scholars.
- Professional Quotas: A dedicated quota of 5,000 Temporary Employment Entry visas for Indian professionals, including AYUSH practitioners, IT experts, and healthcare workers.
- Holiday Visas: 1,000 Work and Holiday visas for Indian youth
New Zealand has committed to facilitating USD 20 billion in investment into India over the next 15 years, targeting infrastructure and manufacturing under the ‘Make in India’ initiative.
The agreement also moves beyond traditional trade by establishing Centers of Excellence for apples, kiwifruit, and honey to boost Indian agricultural productivity and farmer incomes through technology transfer.
”Today this FTA is about building trade around people and launching opportunities—for our farmers, entrepreneurs, and students,” said Piyush Goyal, Minister for Commerce and Industry, noting the deal’s alignment with the ‘Viksit Bharat 2047’ vision.