India-New Zealand FTA to be signed on Monday, says PM Christopher Luxon
Also read: India announces strong FTA calendar: UK, Oman and New Zealand agreements next
This marks one of the fastest trade deals signed by New Delhi, which was launched in March 2025 and concluded within nine months. Prime Minister Narendra Modi and Luxon jointly announced the agreement and described it as comprehensive, balanced and future-oriented.
The trade agreement could provide duty-free access to Indian goods in the New Zealand market and attract investment of up to $20 billion over the next 15 years, an official quoted by PTI said.
Earlier in December, Luzon said the FTA with India would translate into more jobs, higher income and a sharp increase in exports, a promise made during his government’s first term as it opened up New Zealand businesses to India’s large consumer base.
In his post on X with the slogan “Fixing the Foundations. Building the Future”, he said, “We said in our first term that we would sign a Free Trade Agreement with India, and we did it. This landmark agreement opens the door to 1.4 billion Indian consumers, meaning more jobs, higher incomes and more exports.”
India-New Zealand FTA: What’s in it?
Under the trade deal, New Zealand is said to provide zero-duty access to all India’s exports, providing significant opportunities for key sectors such as textiles and ready-made garments, leather and footwear, engineering products, pharmaceuticals and agricultural products. India will liberalize tariffs on around 70 per cent of its tariffs, covering around 95 per cent of bilateral trade with the Kiwis. The trade agreement is not limited to trade in goods, with New Zealand providing market access in 118 service sectors and expanded MFN application in 139 sub-sectors, including IT, professional services, telecommunications, construction, tourism and education.
For Indian students wishing to study abroad, the trade agreement promises that students will not face any numerical caps, with post-study work rights of up to three years for STEM graduates and four years for PhD academics.
The India-NZ Free Trade Agreement also provides Temporary Employment Entry Visas to 5,000 Indian professionals in fields such as IT, engineering, healthcare, education and construction, as well as special categories for AYUSH practitioners, yoga instructors, chefs and music teachers. In addition, the government will also issue 1,000 work and holiday visas per year.
On the investment front, the New Zealand government has pledged to facilitate investments worth $20 billion into India over the next 15 years. The trade agreement also includes cooperation in agriculture through Centers of Excellence for honey, apples and kiwifruit; It protects sensitive sectors by excluding products such as dairy products, sugar, spices and edible oils from market access commitments.
The trade agreement also includes production support measures, including duty-free access to key inputs such as wood logs, coking coal, metal waste and scrap.
Pharmaceutical and medical device companies will also benefit from faster regulatory approvals through the acceptance of global inspection reports by regulators such as the US FDA, EMA and the UK MHRA.
