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Informist, Monday, Dec. 22, 2025

 

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--New Zealand PM: Spoke to PM Modi after conclusion of FTA with India 
--New Zealand PM: FTA with India reduces tariffs on 95% of exports to India 
--New Zealand PM:Exports to India to rise $1.1 bln-$1.3 bln/yr over 2 decades 
--New Zealand PM:FTA gives our businesses access to 1.4 bln Indian consumers 
--Govt: PM Modi, New Zealand PM Luxon Mon announced conclusion of FTA 
--Govt: India-New Zealand FTA to deepen econ engagement, enhance mkt access 
--Govt: India-New Zealand to double bilateral trade over 5 years 
--Govt: New Zealand to invest $20 bln in India over next 15 years 
--Govt: India-New Zealand FTA to promote investment flows 
--Govt:New Zealand FTA to give zero duty mkt access on 100% of India exports 
--Govt: India offered tariff liberalisation in 70% lines in New Zealand FTA 
--Govt:Offered tariff liberalisation on 95% of India-New Zealand trade in FTA 
--Govt: FTA delivers New Zealand's best services offer in any of its FTAs 
--Govt: Secured commitments across IT, fincl services under New Zealand FTA 
--Govt:New Zealand FTA to have quota of 5,000 visas for Indian professionals 
--Govt: New Zealand FTA to have 5,000 visas quota for Indians of up to 3 yrs 
--Govt: New Zealand FTA to address non-tariff barriers 
--Govt: New Zealand FTA to give faster regulatory access to medical devices 
--Govt: Market access under New Zealand FTA excludes dairy, coffee, cheese 
--Govt: Market access under New Zealand FTA excludes onions, sugar, spices 
--Govt: Market access under New Zealand FTA excludes edible oils, rubber

 

NEW DELHI – India and New Zealand have concluded a free trade agreement, nine months after restarting talks, the two countries announced Monday. Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon Monday announced the conclusion of the trade pact and expressed confidence in doubling bilateral trade over the next five years.

Under the agreement, India will get zero-duty market access on 100% of its exports to New Zealand. The pact will also lower tariffs on 95% of New Zealand's exports to India, covering 70% tariff lines, the commerce ministry said in a release.

 

New Zealand will also invest $20 billion in India over the next 15 years under the agreement. To ensure $20 billion of foreign direct investment from New Zealand, the trade deal also has provision for India to withdraw some benefits under the FTA, if the latter does not fulfil its investment commitment, Commerce Minister Piyush Goyal told reporters in New Delhi.   

 

"Launched on March 16th 2025, the fastest with a Developed Country FTA concludes the year on a high note for all Indian exports including textiles, pharmaceuticals, leather, Engineering Goods, Agricultural products," the commerce ministry said in a release. 

 

Luxon said that exports to India could increase $1.1 billion to $1.3 billion per year over the coming two decades because of the trade agreement. "The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," Luxon said on X, formerly Twitter, after his discussions with PM Modi. 

 

India and New Zealand had bilateral merchandise trade of $1.3 billion in 2024–25 (Apr-Mar), up 49% on year. India's exports to New Zealand were $711.10 million in FY25. The Oceanic nation had exported goods worth $587.13 billion to India in FY25.

 

The now concluded trade agreement ensures enhanced market access, deeper investment flows, and provides opportunities for innovators, entrepreneurs, farmers, micro, small, and medium Enterprises, students, and youth. To ensure protection for farmers and the domestic industry, New Delhi has not given market access to dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils, and rubber, the commerce ministry said. 

 

But New Delhi is open to discussions with New Zealand on granting market access to the dairy sector if India allows access to any other economy comparable with that of New Zealand--where per capita GDP is similar, Goyal said. "A. India is never going to open up dairy, so that concern really doesn't matter. B. It's only a consultation, no commitment," Goyal added. 

 

"Incidentally, we have also done an agreement to promote greater investment that they should bring their raw materials or ingredients to India, process them and create high-quality dairy products in India. And 100% of that will be re-exported from India," the minister said. "That way, this will not only help us increase exports to New Zealand, but their investments will help us become a dairy exporter to other parts of the world." 

 

Another highlight of the trade deal is that it will enable faster regulatory access to Indian medical devices in New Zealand. Wellington will accept the Good Manufacturing Practices and Good Clinical Practices inspection report on medical devices from not just New Zealand's regulatory authority but also key comparable bodies like the US Food and Drug Administration, the European Medicines Agency and the UK Medicines and Healthcare products Regulatory Agency. "This will reduce duplicative inspections, lower compliance costs, and expedite product approvals, thereby facilitating the growth of India's pharmaceutical and medical devices exports to New Zealand," the commerce ministry said.

 

To boost services trade, the FTA has opened doors to Indian professionals in New Zealand through a new temporary employment entry visa pathway with a quota of 5,000 visas at any given time and a stay of up to three years. This pathway covers Indian professions in engineering, information technology, healthcare, education, and construction, among others. The bilateral services trade between the two nations was $1.24 billion in 2024, according to the commerce ministry.

 

The FTA delivers New Zealand's best and most ambitious services offer in any of its FTAs to date, the commerce ministry said in its release. "India has secured commitments across a wide range of high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment," the release added.

 

In a post on X, PM Modi said, this is an important moment for India-New Zealand relations, with a strong push for bilateral trade and investment. "Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries," Modi said.

 

This is the third free trade agreement that India has signed this calendar year, after the UK and Oman. India and New Zealand re-started talks for a trade agreement in March, a decade after the first round of negotiations fell through. The two countries had started working on the agreement in April 2010, but the talks got stalled in February 2015 due to disagreements over market access and trade priorities.  End

 

US$1 = INR 89.53

 

Reported by Krity Ambey and Shubham Rana

Edited by Tanima Banerjee

 

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