India-New Zealand Free Trade Agreement signed

India and New Zealand have on 27 April 2026 signed a Free Trade Agreement (FTA). The negotiations were officially launched on 16 March 2025 and after five formal rounds of negotiations and several intersessions, the Agreement was concluded on 22 December 2025. It will enter into force after the completion of all domestic procedures and ratification in both countries. 

According to the Press Release by the Ministry of Commerce, New Zealand is India’s second-largest trading partner in the Oceania region, with bilateral trade valued at around USD 1.3 billion. It is stated that with the coming into force of the India-New Zealand FTA, bilateral trade is expected to witness further growth, supported by enhanced market access, greater trade facilitation, and deeper economic engagement between the two countries. 

Key highlights of the Agreement are listed below. 
 

• Commitment of investment of USD 20 billion by New Zealand.
• Duty-free access for 100% of India’s exports to New Zealand from date of enforcement of Agreement. New Zealand at present has peak tariffs of up to 10% on various Indian exports including ceramics, carpets, automobiles, and auto components.
• India provides tariff cuts on 70.03% of tariff lines covering 95% of bilateral trade value. 30% of tariff lines will have immediate duty elimination, covering wood, wool, sheep meat, leather-raw hides etc.
• Duty-free inputs (imports into India) for manufacturing sector, including wooden logs, coking coal, and waste and scraps of metals.
• Tariff Rate Quotas for import of Apples, Kiwifruit and Manuka. 
• Market access commitments to India in New Zealand in about 118 services sectors.
• Temporary Employment Entry (TEE) Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas and stay of up to 3 years.
• Dedicated pathway on Student Mobility and Post Study Work Visas. Minimum of 20 hours per week of work during study and extended post-study work opportunities-up to three/four years. 
• Multiple-entry Working Holiday Visas for 1,000 young Indians annually.
• Pharmaceuticals and medical devices exports streamlined by enabling acceptance of GMP and GCP inspection reports from comparable regulators.
• Geographical Indications – New Zealand commits to amend its domestic law within 18 months to enable registration of India’s ‘other goods’, other than wines and spirits which can already be registered.
• Bilateral safeguard mechanism provided and can be invoked in case of surge in imports.