India-New Zealand FTA Sealed, Zero Duty on All Goods Exports

• India-NZ FTA: Zero duty on 100% Indian exports
• NZ commits $20B investment over 15 years
• Services access in 118 sectors; 5K professional visas

Following a telephone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, India and New Zealand have agreed on a comprehensive Free Trade Agreement (FTA) after the negotiations. The agreement, which was described as a "historic milestone" achieved in a record time of nine months since the talks were launched in March 2025, provides New Zealand with a 100% duty, free access to Indian exports, while India opens its market with tariff reductions on about 70% of tariff lines, which account for almost 95% of the trade value between the two countries.

Among the vital changes are duty, free imports into India for manufacturing inputs such as wooden logs, coking coal, and metal scrap, together with the pairings for sensitive agricultural products like dairy, edible oils, sugar, onions, and spices to ensure the protection of domestic producers. The Indian exporters of engineering goods, automobiles, textiles, leather, pharmaceuticals, and medical devices will be the main beneficiaries of the agreement, with the pharma and devices sectors getting regulatory relief through acceptance of GMP/GCP reports by global regulatory bodies like US FDA and EMA.

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India has obtained liberal market access to a total of 118 services sub, sectors, such as IT, professional services, construction, and education, with most, favored, nation treatment being granted in 139 areas. The mobility provisions outline a 5, 000, visa quota for professionals, 1, 000 work, and, holiday visas, and post, study work rights of up to four years for doctoral scholars. New Zealand has made a pledge to facilitate investments worth $20 billion over 15 years in the areas of manufacturing, infrastructure, and innovation, supported by a rebalancing mechanism.

The current bilateral merchandise trade is valued at $1.3 billion, while the total trade in goods and services is at $2.4 billion; the FTA is designed to double the trade volume within five years. The officials described it as a people, oriented agreement that would stimulate jobs, MSMEs, and the exchange of talent, thus being in line with India's Viksit Bharat 2047 vision. The signing is anticipated in early 2026, and the implementation will take place shortly thereafter.