India, New Zealand to Ink Free Trade Pact on Monday

According to the commerce ministry, the agreement will be signed at the Bharat Mandapam in the presence of Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay.

The deal will also provide India with more temporary work visas and easier access to medicines and medical devices.

While the deal will eliminate or reduce tariffs on 95 percent of New Zealand’s exports to India, such as wool, coal, wood, wine, avocados and blueberries, New Delhi has made no concessions on allowing imports of dairy products, onions, sugar, spices, edible oils and rubber to protect farmers and domestic industry.

New Zealand, which has committed to investing US$ 20 billion in manufacturing, infrastructure, services, innovation and employment creation in India over the next 15 years, will also make quota-based tariff cuts on kiwi and apple exports.

The agreement aims to double bilateral trade to $5 billion within five years. The agreement will help Indian exporters diversify their shipments in the Oceania region, which are under the influence of global uncertainties, including the West Asian crisis. India has already signed a trade agreement with Australia.

Under the agreement, New Zealand will gain duty-free access to products such as sheepmeat, wool, coal and more than 95 percent of forestry and wood products.

It will also receive duty relief on a range of products including kiwi, wine, some seafood, cherries, avocados, dates, bulk baby food, Manuka honey and dairy albumins.

To protect the interests of domestic farmers and MSMEs, India will not grant any concessions in the politically sensitive dairy sector such as milk, cream, whey, yoghurt and cheese.

Other products that will not be covered by the agreement include plant products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, weapons and ammunition, precious stones and jewellery, copper and its products and aluminum and articles.

Regarding the services sector, New Zealand will offer a temporary employment entry visa route to Indian professionals working in skilled trades, with an annual quota of 5,000 visas and a stay of up to three years.

This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers, as well as high-demand sectors such as IT, engineering, healthcare, education and construction, strengthening workforce mobility and trade in services.

Under the agreement, New Zealand will create a dedicated Agricultural Technology Action Plan on kiwi, apple and honey to help Indian farmers increase productivity and quality.

The collaboration includes the establishment of centers of excellence, improvement of planting materials, capacity building for growers and technical support for orchard management, post-harvest practices, supply chain performance and food safety.

New Zealand’s commitment to Geographical Indications (GIs) has been expanded, including changes to its law to facilitate the registration of Indian wines and spirits.

In addition to tariff liberalization, the agreement includes provisions to address non-tariff barriers through enhanced regulatory cooperation and technical barriers to streamlined customs, sanitary and phytosanitary measures, and trade disciplines.

India’s pharmaceutical and medical device sector will get a boost through faster access to legislation in New Zealand, enabling acceptance of GMP (Good Manufacturing Practice) and GCP (Good Clinical Practice) inspection reports by similar regulatory bodies, including approvals by the US Food and Drug Administration (FDA), the EU’s European Medicines Agency (EMA), the UK’s Medicines and Healthcare products Regulatory Agency (MHRA).

This will reduce duplicate inspections, reduce compliance costs and accelerate product approvals, thereby facilitating the growth of India’s pharmaceutical and medical device exports to New Zealand.

The NDA government has so far signed agreements with the UAE (implemented in May 2022), Australia (implemented in December 2022), the United Kingdom (signed in July 2025), the EFTA bloc (implemented in October 2025), Oman (signed in December 2025), the European Union (announced closure of negotiations in January 2026) and Mauritius (effective from April). ended the FTA. 2021).

India has so far completed free trade agreements with three members of the Five Eyes (FVEY) alliance – Australia, UK and New Zealand. The five countries of the intelligence sharing network are Australia, Canada, New Zealand, the UK and the USA. Negotiations for a trade agreement with the USA and Canada are ongoing.

Bilateral trade in goods between India and New Zealand stood at US$ 1.3 billion in 2024-25, while total trade in goods and services reached approximately US$ 2.4 billion in 2024; Trade in services alone reached US$1.24 billion, led by travel, IT and business services.