India - Newzealand Free Trade Agreement

Friends,According to the media reports,On December 22, 2025, India and New Zealand announced the successful conclusion of negotiations for a landmark Free Trade Agreement (FTA). This deal, finalized in a record nine months, aims to double bilateral trade to $5 billion within five years. 

Key Trade Terms

Indian Exports: New Zealand will provide zero-duty access for 100% of Indian goods from day one, benefiting labor-intensive sectors like textiles, leather, gems and jewelry, and engineering.

New Zealand Exports: India will eliminate or significantly reduce tariffs on 95% of New Zealand’s exports.

Immediate duty-free access: Includes wool, coal, sheep meat, and forestry products.

Preferential access: For the first time in an Indian FTA, New Zealand secured preferential access for apples, kiwifruit, and mānuka honey (often via quotas or phased reductions).

Exclusions: To protect domestic farmers, India has excluded major dairy products (milk, cheese, butter), as well as onions, sugar, and edible oils from tariff cuts. 

Investment and Services

Investment Commitment: New Zealand has pledged to facilitate $20 billion (₹1.8 lakh crore) in foreign direct investment into India over the next 15 years.

Market Access: India secured access to 118 services sectors in New Zealand, including IT, finance, and construction.

Professional Mobility:

Work Visas: A new pathway for up to 5,000 skilled Indian professionals at any time, focusing on priority sectors like healthcare and engineering.

Student Visas: STEM graduates can work for up to three years post-graduation, while doctoral scholars can work for four years.

Working Holiday Scheme: Expanded to 1,000 places annually for Indian youth. 

Status and Implementation

Signing: The agreement is expected to be formally signed in the first quarter of 2026 following a legal scrubbing process.

Implementation: It is slated to take effect in 2026, pending legislative approval in New Zealand.

Opposition: The deal faces criticism in New Zealand from the New Zealand First party, a coalition partner that has vowed to vote against it, citing concerns over immigration concessions and the exclusion of dairy.Thanks for connecting business Khabri.