India and New Zealand Sign Landmark Free Trade Agreement

India and New Zealand signed a comprehensive Free Trade Agreement (FTA) on April 27, 2026, at Bharat Mandapam in New Delhi. The pact aims to double bilateral trade to $5 billion within five years and involves a commitment from New Zealand to promote $20 billion in investment into India over the next 15 to 25 years. Under the terms, New Zealand will provide 100% duty-free access for all Indian exports, while India will liberalize approximately 70% of its tariff lines, covering 95% of bilateral trade. To protect domestic farmers, India excluded sensitive sectors such as dairy, sugar, and edible oils from the concessions.

Narendra Modi and Christopher Luxon characterized the deal as a historic milestone. The agreement includes mobility provisions for 5,000 Indian professionals annually and 1,000 working holiday visas. To expedite investment, India agreed to establish a special single desk for New Zealanders. The deal also includes a first-of-its-kind recognition of India's AYUSH traditional medicine alongside Māori health practices.

The agreement faced domestic opposition in New Zealand from the New Zealand First party and the Labour Party over immigration and the nature of the investment clause. However, the New Zealand Parliament passed the deal after Labour provided the necessary votes. In India, some politicians criticized the reduced import duties on New Zealand apples, arguing it would hurt growers in hill states like Himachal Pradesh. The FTA is expected to enter into force by the end of 2026, pending final approvals from the Indian Union Cabinet and New Zealand's parliamentary review process.