What is in India-New Zealand FTA agreement and trade

Recently both the countries concluded India–New Zealand Free Trade Agreement (FTA) within nine months’ time, the formal discussion started in March 2025 and was concluded on 22nd December 2025.

The agreement is structured in a way to boost bilateral trade and will have duty free access that is Zero duty for all Indian exports cargo

• Tariff liberalization covering approximately 95% of bilateral trade

Key take aways from the agreement

• Zero duty for exports of India originating cargo.

• Commitment of USD 20 billion investment in India by New Zealand in 15 years

• New Zealand signs for the Health and Traditional Medicine Services for the first time.

• India commitment across 118 services sectors, with Most-Favoured Nation (MFN) treatment in 139 sectors to New Zealand.

Zero Duty Access: A Game Changer for Exports

New Zealand will remove tariffs on 100% of Indian exports cargo, giving Indian exporters immediate or phased duty-free access to a range of products.

This will make a positive impact on below industries in India -

• Textiles and apparel

• Leather and footwear

• Gems and jewellery

• Marine products and handicrafts

• Engineering goods and automobiles

The duty-free exports will give boost to MSME- Micro, Small and Medium Enterprises exports and make them more competitive with the investment commitments.

This will be a support to the Indian exports market after high tariff from America.

Investment Inflows and Long-Term plan

An important clause of the agreement is the commitment of USD 20 billion of investment in India by New Zealand in 15 years. These inflows will be in multiple sectors like manufacturing, infrastructure, services, and employment generation etc.

Trade increase in last 10 years between the two countries

The exports from India has increased exponentially in last 10 years after the change in the ruling party in India

Merchandise Exports to New Zealand: Rose to USD 711 million in 2024–25, showing a positive trend of 32%.

India and New Zealand merchandise bilateral trade increased from USD 855 Million in 2015-2016 to USD 1298 Million in 2024-2025.