India and New Zealand have formally concluded a landmark Free Trade Agreement (FTA) in just nine months, signalling a new era in economic collaboration between the two nations.
The agreement, announced by Union Minister Piyush Goyal, comes under the leadership of Prime Minister Narendra Modi and New Zealand PM Chris Luxon, with active engagement from Minister Todd McClay.
The #IndiaNZFTA ensures zero customs duties on 100% of India’s exports to New Zealand, covering all tariff lines.
This will benefit farmers, micro, small, and medium enterprises (MSMEs), artisans, women-led businesses, and young people. Key sectors poised to gain include textiles, apparel, leather, footwear, engineering, manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals, and chemicals.
Labour-intensive industries stand to benefit significantly, creating employment opportunities and driving sustainable growth.
New Zealand has pledged $20 billion in foreign direct investment (FDI) in India over the next 15 years, with a focus on manufacturing, infrastructure, services, innovation, and job creation.
This infusion will further strengthen India’s industrial and economic landscape and deepen bilateral ties.
Empowering Farmers & Agri-Exports
The FTA opens new avenues for Indian agricultural exports such as fruits, vegetables, coffee, spices, cereals, and processed foods.
Farmers can enhance productivity and incomes through initiatives like the Agricultural Productivity Partnership and Centres of Excellence. They will also benefit from access to New Zealand’s advanced agri-technologies.
Special attention to horticultural products, including honey, kiwifruit, and apples, supports sustainable growth while safeguarding domestic interests.
India’s services sector, spanning IT, finance, education, tourism, and construction, will gain new opportunities.
For the first time, New Zealand has included annexes on health, traditional medicine, student mobility, and post-study work, providing unprecedented avenues for Indian professionals and students.
Additional provisions include working holiday visas, post-study work pathways, and 5,000 temporary employment visas for skilled Indian workers.
The agreement strengthens India-New Zealand economic cooperation and aligns with India’s long-term vision of Viksit Bharat 2047, promoting inclusive growth, investment, and international collaboration.
