India-New Zealand FTA: Why Kiwi Politicians Are Unhappy With ‘Historic Free Trade Agreement’ | India News

India and New Zealand signed a historic Free Trade Agreement on December 22, reflecting the common desire to deepen economic ties between the two countries. Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon held a phone call on December 22 and announced that the landmark Free Trade agreement between the two countries was signed within nine months.

Both leaders agreed that the FTA would create greater trade, investment, innovation and joint opportunities between the two countries. The India-New Zealand FTA ensures bilateral trade will double in the next five years and $20 billion will be invested from New Zealand into India over the next 15 years.

Even though New Zealand Leader and New Zealand Foreign Minister Winston Peters opposes the Free Trade Agreement. In a ‘x’ post, the leader opposed the India-New Zealand FTA and wrote: ‘New Zealand First unfortunately opposes the India Free Trade Agreement announced today. He said the India-New Zealand Free Trade Agreement was neither free nor fair.

Why is FTA opposed?

Especially New Zealand’s largest industry is dairy products and the same is one of India’s largest sources of income. To protest farmers’ interests, India excluded its dairy sector from the scope of the FTA, and Kiwi politicians are now protesting this and other clauses.

“We think the India-New Zealand Free Trade Agreement is neither free nor fair… Unfortunately, it’s a bad deal for New Zealand. It gives too much away, especially on immigration, and doesn’t get enough money in return for New Zealanders, including dairy products… While New Zealand is opening its market fully to Indian products under this agreement, India is not reducing the significant tariff barriers currently facing our major dairy products. This is not a good deal for New Zealand farmers and it’s impossible to defend our rural communities. India FTA is New Zealand’s milk, cheese “The first trade deal, which excluded our major dairy products, including butter and butter, by November 2025 New Zealand’s exports of these products were worth approximately $24 billion, or 30% of our total goods exports.” he said.

New Zealand First unfortunately opposes the India Free Trade Agreement announced today.

We think the India-New Zealand Free Trade Agreement is neither free nor fair.

Unfortunately this is a bad deal for New Zealand. It gives a lot of information, especially on immigration… — Winston Peters (@winstonpeters) December 22, 2025

He also said New Zealand had made significant concessions to India in areas that had nothing to do with two-way trade but rather with promoting the movement of people from India to New Zealand and New Zealand’s investment in India. Peters said New Zealand ‘offers India far greater access to our labor market than Australia or the UK offer to secure their own free trade agreements’ and that this is ‘extremely unwise’.


“New Zealand First looks at all proposed changes to immigration from the same perspective: Do they protect the integrity of our immigration system as well as the ability of New Zealanders to find meaningful employment? The India deal fails that test. By creating a new work visa specifically for Indian citizens, it will likely generate much more interest in Indian immigration to New Zealand at a time when we have a very tight labor market,” he said.