India–New Zealand FTA Explained: Zero tariffs, services access, 5,000 work visas, firm farm safeguards

 

India and New Zealand have successfully concluded a landmark free trade agreement after just nine months of negotiations, marking a major step forward in bilateral economic ties. The deal was announced following a conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, with Commerce and Industry Minister Piyush Goyal calling it a significant milestone aligned with India’s long-term growth ambitions.

What the India–New Zealand FTA delivers

The agreement spans goods, services, investment, agriculture and workforce mobility, while carefully protecting sensitive domestic sectors. Here are the five core pillars of the India–New Zealand FTA, as outlined by the commerce minister:

1. Zero-duty access for Indian exports

Once the agreement enters into force, India will receive zero customs duty on 100% of its exports to New Zealand, with tariff elimination across all tariff lines. Labour-intensive sectors, such as textiles, apparel, leather, and footwear, are expected to benefit, alongside engineering, manufacturing, automobiles, electronics, machinery, pharmaceuticals, and chemicals. The pact is positioned to support farmers, MSMEs, artisans, women-led enterprises and youth employment.

2. $20 billion investment commitment from New Zealand

The FTA includes a major investment push, with New Zealand committing to facilitating $20 billion in foreign direct investment into India over 15 years. The investment focus spans manufacturing, infrastructure, services, innovation and job creation, reinforcing India’s broader industrial and economic expansion goals.

3. New opportunities for Indian agriculture

The agreement opens pathways for Indian agricultural products, including fruits, vegetables, cereals, spices, coffee and processed foods, to access New Zealand’s markets. Through agri-productivity partnerships, Centres of Excellence and access to advanced New Zealand farming technologies, the deal aims to boost productivity, quality and farm incomes. Targeted initiatives also cover horticultural products such as honey, kiwifruit and apples.

4. Strong safeguards for sensitive sectors

Recognising domestic sensitivities, India has fully safeguarded agriculture and allied sectors, including dairy, sugar, edible oils, coffee, spices, precious metals, copper cathodes and rubber-based products. These protections ensure that farmers, MSMEs and domestic industries remain shielded from import surges and market disruptions.

5. Services, visas and mobility at the core

Services form a central pillar of the pact, with India securing access in 118 service categories, including IT & ITeS, finance, education, tourism and construction. New Zealand has also introduced its first-ever annexes on health, traditional medicine, student mobility and post-study work. The agreement provides 5,000 temporary work visas for skilled Indian professionals and expands working holiday visas and post-study employment pathways, opening new global opportunities for Indian talent.