India and New Zealand have concluded a landmark Free Trade Agreement (FTA), described by officials as the first women-led FTA and among India’s fastest trade deals with a developed economy. The agreement was finalised in just nine months, underscoring both sides’ intent to deepen economic engagement.
Negotiations for the pact were formally launched on March 16, 2025, following discussions between India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay. The deal was wrapped up after five formal negotiation rounds, supported by several in-person and virtual meetings.
Describing the agreement as people-centric, Piyush Goyal said the FTA is designed to create opportunities for farmers, entrepreneurs, students, women and innovators, while strengthening India’s global trade footprint.
What Makes the India–New Zealand FTA Distinctive?
1. First Women-Led Free Trade Agreement
The most notable feature of the pact is its women-led negotiation process. Women negotiators played a leading role in drafting, negotiating and finalising the agreement. The government has positioned this as a step towards more inclusive trade policymaking, with greater representation of women in shaping global economic frameworks.
2. Unprecedented Market Access for Indian Exports
New Zealand has agreed to eliminate tariffs on 100% of its tariff lines, providing duty-free access to all Indian exports. India, in turn, will reduce tariffs on 70% of tariff lines, covering 95% of bilateral trade.
The move is expected to significantly benefit labour-intensive and export-driven sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
In services, India has secured what officials describe as the widest access New Zealand has ever offered under an FTA. Commitments cover 118 services sectors, including IT and IT-enabled services, education, professional services, financial services, tourism, construction, telecom and audio-visual services. New Zealand has also extended Most-Favoured Nation treatment across 139 sub-sectors, opening new avenues for Indian service providers.
3. Strong Focus on Mobility, Investment and Agriculture
The third major speciality of the agreement lies in its emphasis on mobility, investment and agricultural cooperation.
Indian students will benefit from post-study work visas with no numerical caps, allowing up to three years of work rights for STEM bachelor’s and master’s graduates, and up to four years for doctoral students. The deal also sets aside 5,000 Temporary Employment Entry visas and 1,000 work-and-holiday visas for Indian professionals and youth.
In agriculture, the FTA introduces productivity partnerships through Centres of Excellence for apples, kiwifruit and honey, focusing on research, training and technology sharing. To protect domestic farmers, market access for these products will be regulated through quotas and minimum import prices, while sensitive items such as dairy, milk, cheese, onions, sugar, spices, edible oils, coffee and rubber are excluded from tariff concessions.
Investment, Regulatory Cooperation and Trade Outlook
Commerce Secretary Rajesh Agrawal described the pact as a new-generation trade agreement combining tariffs, agricultural productivity, investment and talent mobility.
New Zealand has committed to facilitate investments worth USD 20 billion in India over the next 15 years, supporting manufacturing, infrastructure, services and innovation. Indian firms are also expected to gain improved access to New Zealand and Pacific Island markets.
The agreement addresses non-tariff barriers through enhanced regulatory cooperation, faster customs procedures and streamlined sanitary and technical standards. Notably, New Zealand will accept pharmaceutical and medical device inspection reports from regulators such as the US FDA, EMA and UK MHRA, reducing approval timelines and costs for Indian exporters.
Bilateral merchandise trade between India and New Zealand stood at USD 1.3 billion in 2024–25, while total trade in goods and services was around USD 2.4 billion. Officials believe the FTA provides a stable framework to unlock long-term trade growth and deepen economic ties.
The India–New Zealand FTA is the third trade agreement concluded by India this year and is being positioned as a forward-looking pact aligned with India’s broader vision of Viksit Bharat 2047.
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