Agriculture protected: What India kept out of the New Zealand FTA

As India and New Zealand concluded a landmark Free Trade Agreement, the Centre on Monday underlined that key farm and sensitive products have been kept outside the deal, a move aimed at protecting domestic farmers and vulnerable sectors even as the pact opens wide market access for Indian exports.

Prime Minister Narendra Modi described the agreement as a major step forward in bilateral ties. "An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment! My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement. 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 wrote on X.

In another post, Modi said the partnership would expand rapidly under the pact. "The India-NZ partnership is going to scale newer heights. The FTA sets the stage for doubling bilateral trade in the coming 5 years. India welcomes investment worth over USD 20 billion from New Zealand across diverse sectors." 

What is excluded from FTA 

The Ministry of Commerce said the agreement was "comprehensive, balanced and forward-looking", while making clear that market access has been carefully calibrated to shield farmers and domestic industry. According to the ministry, the FTA excludes dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils and rubber from tariff concessions.

Speaking on the agreement, Commerce and Industry Minister Piyush Goyal said, "Today this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity."

While sensitive farm products have been kept out, New Zealand will eliminate tariffs on 100% of its tariff lines, providing duty-free access for all Indian exports. This is expected to improve competitiveness for labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains.

The agreement also delivers New Zealand's most ambitious services offer in any of its FTAs to date, with India securing commitments across IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening new avenues for Indian service suppliers and high-skill employment.

A key pillar of the pact is mobility. The FTA provides improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework. It also opens skilled employment pathways through a new Temporary Employment Entry Visa, with a quota of 5,000 visas at any given time and stays of up to three years.

New Zealand Prime Minister Christopher Luxon said the deal would significantly expand access for Kiwi exporters. He said exports to India are forecast to increase from USD 1.1 billion to USD 1.3 billion per year over the coming two decades. "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," he said.

The pact also includes dedicated agri-technology action plans on kiwifruit, apples and honey, focused on productivity enhancement, research collaboration, quality improvement and value-chain development, supporting income growth for Indian farmers through Centres of Excellence, improved planting material and technical support.