Winning Bizness Desk
Mumbai. India and New Zealand on Monday signed a long-awaited Free Trade Agreement, signalling a major shift in bilateral economic relations. The pact is expected to ease trade flows, reduce tariffs and deepen engagement across goods and services sectors.
New Zealand Prime Minister Christopher Luxon described the deal as a “once-in-a-generation” agreement, while Commerce and Industry Minister Piyush Goyal termed it the beginning of a new chapter in economic cooperation.
Duty-free access to boost key sectors
Under the agreement, Indian exports such as leather products, textiles, plastics and engineering goods will face zero export duty in the New Zealand market. These labour-intensive sectors are expected to benefit significantly from improved competitiveness and expanded market access.
Key trade benefits:
- Zero export duty on major Indian goods
- Boost to labour-intensive industries
- Greater access to Oceania markets
Investment and trade expansion outlook
The agreement aims to double bilateral trade and attract large-scale foreign investment into India. New Zealand is expected to invest around 20 billion dollars, approximately ₹1.8 lakh crore, over the next 15 years.
Goyal said the deal reflects shared values and a commitment to sustainable economic growth, adding that it would act as a gateway for India into Oceania and Pacific Island markets.
Opportunities for Indian professionals
The services sector stands to gain significantly, with India securing market access in high-value segments such as information technology, education, financial services, construction and tourism.
Key mobility provisions:
- 5,000 Indian skilled professionals eligible annually
- Up to three years of work opportunity in New Zealand
- Sectors include engineering, healthcare and education
Additionally, avenues will open for AYUSH practitioners, yoga instructors, Indian chefs and music teachers.
Tariff concessions with safeguards
India has opened nearly 70 percent of its tariff lines for New Zealand, offering concessions on agricultural products like apples, kiwifruit and manuka honey, subject to quotas and minimum import price conditions.
New Zealand will receive immediate zero-duty access on over 54 percent of its exports to India, including sheep meat, wool, coal and forestry products. Tariffs on seafood, metals and aluminium scrap will be phased out over the next decade.
However, India has excluded sensitive sectors such as dairy products, onions, pulses, sugar, arms and certain metals to safeguard domestic interests.
Long negotiation process concludes
Negotiations for the agreement began in 2010 and saw nine rounds before being paused in 2015. Talks resumed in March 2025, culminating in a successful conclusion announced on December 22, 2025.
The agreement comprises 20 chapters covering goods, services, rules of origin, technical barriers and customs procedures. Authorities say the final impact will unfold as implementation begins and trade volumes respond.
