A key highlight of the agreement is the complete elimination of tariffs on Indian exports to New Zealand across all tariff lines. Labour-intensive sectors such as textiles, apparel, leather and footwear are expected to benefit significantly, generating employment and boosting export competitiveness.
Manufacturing sectors including engineering goods, automobiles, electronics, machinery, pharmaceuticals, chemicals and plastics are also set to gain. The FTA aims to double bilateral trade over the next five years, reinforcing India’s position as a reliable manufacturing and export hub.
Strong Focus on MSMEs, Farmers and Women Entrepreneurs
The agreement places special emphasis on MSMEs, artisans, women-led enterprises and youth-led startups. Improved market access and reduced trade barriers are expected to help Indian small businesses integrate into global value chains.
Agriculture is another major beneficiary. Indian farmers will gain improved access to New Zealand’s market for fruits, vegetables, cereals, coffee, spices and processed foods. Initiatives such as agricultural productivity partnerships, centres of excellence and access to advanced New Zealand technologies are expected to raise farm productivity and incomes.
Protection of Sensitive Domestic Sectors
While opening new markets, India has safeguarded sensitive domestic sectors. Products such as dairy, sugar, edible oils, precious metals including gold and silver, rubber-based goods and select agricultural products have been excluded to protect domestic farmers and industries.
This balanced approach ensures that the benefits of trade liberalisation do not come at the cost of domestic economic stability or livelihoods.
Major Gains in Services, Education and Mobility
Services and mobility form a central pillar of the India–New Zealand FTA. New Zealand has offered market access in 118 services sectors and MFN treatment in 139 sectors, while India has reciprocated with access in over 100 services sectors.
For the first time, New Zealand has signed a dedicated annex on student mobility and post-study work visas. Indian students will be allowed to work 20 hours per week, with post-study work visas of up to three years for STEM graduates and up to four years for doctoral degree holders.
Investment Commitments and Employment Pathways
New Zealand has committed to investing nearly $20 billion in India over a 15-year period, targeting manufacturing, infrastructure, innovation and job creation. A new temporary employment visa pathway will allow up to 5,000 Indian professionals to work in New Zealand for up to three years.
Professions such as IT experts, engineers, healthcare workers, teachers, yoga instructors, AYUSH practitioners and chefs are among the eligible categories, strengthening India’s skilled workforce footprint abroad.
Strengthening Strategic and Economic Ties
Bilateral merchandise trade between India and New Zealand stood at approximately $1.3 billion in FY 2024–25, with total trade in goods and services touching nearly $2.4 billion. The FTA is expected to substantially raise these figures in the coming years.
The agreement reflects India’s broader strategy of securing high-quality trade partnerships while promoting domestic growth, employment and global integration.