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India Signs Comprehensive FTA with New Zealand

  • 28 Apr 2026

On 27th April 2026, India and New Zealand signed a landmark comprehensive Free Trade Agreement (FTA) at Bharat Mandapam, New Delhi, significantly expanding bilateral trade, services, investment, and mobility while strengthening India’s global economic partnerships.

Key Points

  • 100% Duty-Free Access for Indian Exports: New Zealand will provide complete duty-free access to all Indian exports from the date of implementation, benefiting textiles, automobiles, engineering goods, carpets, and more.
  • Boost to Labour-Intensive Sectors: Indian sectors such as textiles, leather, footwear, gems and jewellery, and processed foods are expected to see significant export growth and job creation.
  • India’s Calibrated Liberalisation: India opened 70.03% of tariff lines covering 95% of bilateral trade value while protecting sensitive sectors like dairy, sugar, edible oils, onions, and spices.
  • Agriculture Safeguards: Products like apples, kiwifruit, and Mānuka honey will enter under tariff rate quotas and minimum import prices to protect Indian farmers.
  • Services Sector Expansion: New Zealand opened 118 service sectors for India, including IT, healthcare, education, tourism, and telecommunications.
  • Mobility and Visa Provisions: Up to 5,000 Indian professionals annually can work in New Zealand under a Temporary Employment Entry visa, alongside expanded student and working holiday opportunities.
  • Investment Commitment: New Zealand committed USD 20 billion in investments across Indian agriculture, infrastructure, manufacturing, startups, and emerging technologies.
  • Pharma and Medical Benefits: Fast-track regulatory recognition for Indian pharmaceuticals and medical devices will reduce compliance barriers.
  • GI and Cultural Cooperation: New Zealand will strengthen Geographical Indications protections and promote AYUSH, yoga, tourism, and traditional knowledge cooperation.
  • Trade Facilitation: Cargo clearance reforms, paperless systems, and single-window processes aim to lower costs and improve efficiency.
  • Strategic Significance: The FTA enhances India’s Indo-Pacific economic presence, resilient supply chains, and trade diversification strategy.