India-New Zealand Free Trade Agreement (FTA)
Context:
India and New Zealand have concluded negotiations for a Free Trade Agreement (FTA) in a record time of just nine months.
The deal is expected to be signed in the first half of 2026 and aims to double bilateral trade to USD 5 billion within the next five years.
This FTA enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets.
Key Highlights of the Agreement
The deal will eliminate duties on 100% of Indian exports to New Zealand.
In return, India will remove or cut tariffs on 95% of New Zealand’s exports (including timber, wool, coal, and fruits like kiwi and avocados)
Through Agricultural Productivity Partnership, the FTA collaborates with farmers to boost productivity and integrate them in the global value chains
The agreement includes a commitment of USD 20 billion in investments from New Zealand into India over the next 15 years.
New Zealand will provide a new visa pathway for 5,000 Indian professionals annually in skilled occupations (including STEM graduates, IT, and healthcare) with a stay of up to three years.
It also covers AYUSH practitioners, yoga instructors, and Indian chefs.
Protection of Sensitive Sectors:
Safeguarding the interests of Indian farmers, no concessions were made in sensitive sectors.
Key agricultural products (like dairy, wheat, rice, sugar, onions, spices, and natural rubber) have been kept out of the ambit of tariff cuts.
Gains from import to support domestic industries: wooden logs, coking coal, waste and scrap of ferrous, non-ferrous metals.
Significance:
It will provide a major fillip to India's exports for labour-intensive sectors such as textiles, leather, footwear, and apparel.
The pact helps Indian exporters diversify shipments in the Oceania region
This is especially important given the rising tariff barriers in other global markets.