India and New Zealand have officially concluded a landmark Free Trade Agreement (FTA) aimed at strengthening economic ties, boosting bilateral trade, and opening up new opportunities for businesses, workers, and investors in both countries.
The agreement was announced on December 22, 2025, following nine months of intensive negotiations that began in March 2025. Leaders from both nations described the deal as ambitious, balanced, and forward-looking, and one that will significantly reshape trade relations in the Indo-Pacific region.
📈 What the India-New Zealand FTA Includes
1. Sweeping Tariff Reductions
Under the agreement:
- India will get zero-duty market access for all its exports to New Zealand.
- New Zealand will reduce or eliminate tariffs on about 95 % of its exports to India, with many products becoming duty-free immediately and the rest phased in over time.
This provides a significant boost to exporters on both sides and is expected to expand trade flows over the coming years.
2. Investment and Collaboration
The FTA includes provisions to promote investment and joint ventures, with New Zealand reportedly pledging up to $20 billion in investment into India over the next 15 years.
3. Skilled Work and Mobility Pathways
The agreement opens new pathways for skilled professionals and work visas, including capped annual allocations that aim to support talent mobility between both countries.
4. Sectoral Opportunities
Key industries expected to gain include:
- Textiles, engineering, leather, and marine products from India
- Horticulture, wool, wood products, and seafood from New Zealand
However, some sensitive sectors like dairy remain excluded due to domestic policy considerations.
🤝 Strategic and Economic Impact
Boost to Bilateral Trade
Trade between India and New Zealand, worth around NZ$3.68 billion ($2.4 billion) annually, is expected to grow significantly, with both sides hoping to double trade within five years.
Strengthening Indo-Pacific Ties
The India-New Zealand FTA is seen as a strategic milestone in India’s broader efforts to deepen economic cooperation across the Indo-Pacific region and diversify trade partnerships amid global trade uncertainties.
Rapid Negotiation and High Ambitions
Negotiated faster than most trade pacts with developed economies, the FTA reflects strong political commitment on both sides to unlock commercial and strategic opportunities.
📌 What Happens Next?
Although the FTA has been concluded, formal signing is expected in the first half of 2026 after legal and parliamentary procedures in both countries are completed. Reuters
Once in force, the deal is expected to transform India-New Zealand trade, benefiting exporters, investors, and consumers alike.
