India- New Zealand signs FTA

A free trade agreement (FTA) announced in March 2025 was concluded on Monday between India and New Zealand that will help double bilateral trade to $5 billion in the next five years, give India tariff-free access to the island nation’s markets and bring in $20 billion in investments over 15 years. This deal will remove about 95 per cent of tariffs on New Zealand’s exports to India, but New Delhi has prioritized interests of its farmers and made no concessions on the import of dairy, onions, sugar, spices, edible oils, and rubber. Rice, wheat, dairy, soya and several other agricultural products have not been opened up with any access. New Zealand will offer temporary visas to skilled Indian professionals with a quota of 5,000 visas annually and a stay of up to three years under the proposed agreement. Presently, New Zealand is India’s second-largest trading partner in Oceania. Around 300,000 people of Indian origin and NRIs live in New Zealand, which makes up about 5% of New Zealand’s population.

Key Takeaways from the FTA

1. The FTA eliminates duty on 100% of Indian exports to New Zealand.
2. It will bring in $20 billion in investments over 15 years.
3. The FTA collaborates with farmers to boost productivity and integrate them in the global value chains through Agricultural Productivity Partnership.
4. The FTA will boost MSMEs and Jobs through Zero-duty access for labour-intensive sectors.
5. India has offered market access in 70.03% of the tariff lines while keeping 29.97 % tariff lines in exclusion.
6. Agricultural and dairy products are excluded, such as animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils, Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils etc.), Aluminium ,articles thereof (Ingots, billets, wire bars) among others and  Dairy (milk, cream, whey, yoghurt, cheese etc.).

Amid trade uncertainties with USA, this deal shows that the Indian market is open for other countries as well and that India doesn’t depend on any one particular country for its trade. The FTA with New Zealandaligns with India’s vision of a globally integrated Viksit Bharat 2047. The Agreement delivers wide-ranging benefits across the Indian economy.