India-New Zealand sign landmark trade agreement. Here's what both sides get

India and New Zealand on April 27 sealed a long-pending free trade agreement (FTA), with Prime Minister Christopher Luxon calling it a “once-in-a-generation” deal that unlocks fresh opportunities across goods, services, investment, and labour mobility.

The pact was signed in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay.

The agreement caps a prolonged negotiation journey that began in 2010, paused in 2015 after nine rounds, and was revived in March 2025 before being concluded in December last year — making it one of India’s quickest FTAs to be finalised.

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Union Minister Piyush Goyal said, "...India today works with the rest of the world from a position of strength, full of confidence to engage, expand the relationship..."

Fastest trade deals

The agreement, concluded in December 2025 after negotiations that began in March the same year, is being described as one of India’s fastest trade deals to move from negotiation to signing. 
Strategic pivot beyond trade 

At its core, the India-New Zealand FTA is not just about tariffs — it is about positioning. For India, New Zealand offers a relatively small but high-income market, and more importantly, a gateway into the wider Pacific and Oceania region. 

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The deal builds on steadily improving trade ties. Bilateral merchandise trade has already climbed to about $1.3 billion in 2024-25, while services trade — particularly in IT and travel — continues to grow. 

This effectively removes tariffs across thousands of product categories, making Indian goods significantly more competitive. Sectors expected to benefit the most include textiles, leather, engineering goods, pharmaceuticals, and processed foods — many of which are labour-intensive and export-driven. 

At the same time, India has been careful not to fully open its own market across the board. Roughly 30% of tariff lines have been kept out of the agreement, particularly in sensitive areas like dairy and key agricultural products. 

Investment and jobs angle 

One of the most significant aspects of the agreement is New Zealand’s commitment to invest $20 billion in India over the next 15 years. 

This long-term capital flow is expected to support infrastructure, agriculture, and technology partnerships, while also strengthening supply chains. 

For India’s domestic economy, the biggest gains are expected in employment-heavy sectors. Zero-duty access for industries such as textiles, footwear, and gems and jewellery could translate into higher export volumes and job creation, especially for MSMEs.