New Delhi, December 22, 2025 – India and New Zealand officially concluded negotiations for a landmark Free Trade Agreement (FTA) today, marking India’s third major trade deal of 2025. The agreement, finalized in a record nine months, follows similar pacts with the United Kingdom and Oman earlier this year, underscoring New Delhi’s aggressive push for global economic integration. The deal was announced following a high-level dialogue between Indian officials and New Zealand’s Trade Minister Todd McClay. Aimed at doubling bilateral trade within the next five years, the agreement covers a wide spectrum of goods, services, and investment frameworks. Key Highlights of the Agreement Zero-Duty Access for India: New Zealand will provide 100% duty-free market access for Indian exports. This is expected to provide a massive boost to labor-intensive sectors such as textiles, apparel, leather, footwear, engineering goods, and pharmaceuticals. Tariff Liberalization for New Zealand: India will liberalize tariffs on approximately 70% of its tariff lines, covering 95% of the current bilateral trade value. New Zealand secured historic access for high-value products like apples, kiwifruit, and honey—marking the first time India has granted such access in an FTA. $20 Billion Investment Commitment: New Zealand has committed to facilitating $20 billion in investments into India over the next 15 years, targeting infrastructure, manufacturing, and innovation under the “Make in India” initiative. Professional and Student Mobility: The “new-generation” pact includes a dedicated visa pathway for 5,000 Indian professionals at any given time, including IT experts, engineers, and healthcare workers, as well as traditional practitioners like yoga instructors and Ayurveda professionals. Additionally, STEM graduates will benefit from post-study work visas of up to three years. Strategic Safeguards Reflecting India’s commitment to protecting its domestic agriculture, the deal excludes sensitive sectors such as dairy (milk, cheese, yogurt), certain meats, and sugar. This allows India to benefit from New Zealand’s technological expertise in “Centres of Excellence” for agricultural productivity without exposing local dairy farmers to direct competition. A Milestone Year for Trade With the New Zealand deal, 2025 has become a defining year for Indian trade diplomacy. United Kingdom: A comprehensive deal signed in July focused on high-end services and manufacturing. Oman: A CEPA signed earlier this month to secure energy ties and Gulf market access. New Zealand: The current pact, described as “people-centric and innovation-driven.” “Today’s agreement is about building trade around people,” said Union Minister of Commerce and Industry Piyush Goyal. “It gives our youth the choice to learn and work on a global stage while driving modern agricultural productivity for our farmers.” The formal signing of the India–New Zealand FTA is expected in the first quarter of 2026 following legal scrubbing.
