India and New Zealand Implement Comprehensive Free Trade Agreement
India and New Zealand have launched a Free Trade Agreement providing duty-free export access and facilitating $20 billion in investment over 15 years.
The Government of India and the New Zealand Government have implemented a Free Trade Agreement designed to expand bilateral trade, investment, and strategic cooperation. Under the terms, New Zealand provides immediate 100% duty-free access for all Indian exports, specifically benefiting the pharmaceuticals, textiles, engineering goods, and gems and jewellery sectors. In exchange, India has granted market access on 70.03% of its tariff lines and established Tariff Rate Quotas for Manuka honey, kiwifruit, and apples.
The agreement extends beyond merchandise to include labor and financial integration. New Zealand will facilitate the movement of up to 5,000 Indian healthcare and IT professionals and expand post-study and work rights for Indian students. Additionally, New Zealand committed to facilitating $20 billion in investment over the next 15 years. Prime Minister Narendra Modi also announced the integration of India's Unified Payments Interface (UPI) with the payment system of New Zealand.
To support long-term growth, the two nations established the Agriculture Productivity Partnership to modernize Indian farming practices. The strategic framework targets an increase in merchandise trade to approximately $3 billion by 2030, building on data from the Ministry of Commerce and Industry showing trade had already reached $1.2 billion in FY26.
