India, New Zealand conclude Free Trade Agreement talks

Negotiations were formally launched on March 16, 2025, during a meeting between Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, and were concluded after five formal rounds along with several in-person and virtual inter-sessional discussions. Goyal said the agreement was about “building trade around people and launching opportunities—for our farmers, entrepreneurs, students, women and innovators.” He added that the pact would boost agricultural productivity and farmer incomes, open doors for Indian businesses in the region and provide Indian youth with global learning and employment opportunities.With 100 per cent duty-free access, labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles are expected to see a sharp rise in exports, directly benefiting workers, artisans, women, youth and MSMEs through deeper integration into international value chains. To protect farmers and domestic industry, market access excludes dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils and rubber.The FTA delivers New Zealand’s most ambitious services commitments in any trade agreement to date, with India securing market access in high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services. It also includes a future-ready mobility framework with improved entry and stay provisions for Indian professionals, students and youth. A new Temporary Employment Entry Visa pathway will allow up to 5,000 Indian professionals at any given time to work in New Zealand for up to three years, covering professions such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education and construction.Commerce Secretary Rajesh Agrawal described the pact as “a new-generation trade agreement built on tariffs, agricultural productivity, investment and talent,” noting that India’s strengths in exports and services would support labour-intensive growth while New Zealand would gain predictable access to India’s large and expanding market. On agriculture, dedicated agri-technology action plans for kiwifruit, apples and honey will focus on productivity enhancement, research collaboration, quality improvement and value-chain development, strengthening domestic capabilities and supporting income growth for Indian farmers.Bilateral merchandise trade between India and New Zealand stood at $1.3 billion in 2024-25, while total trade in goods and services reached about $2.4 billion in 2024.



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