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India–New Zealand FTA 2025: Zero-Duty Exports, USD 20B Investment & Big Boost for Jobs, Students and MSMEs
Summary: India has sealed a historic Free Trade Agreement with New Zealand, unlocking 100% duty-free access for Indian exports, a USD 20 billion investment pipeline, expanded student and professional mobility, and strong cooperation in agriculture, AYUSH and services. The pact positions India as a key economic partner in Oceania and accelerates the vision of Viksit Bharat 2047.
On 22 December 2025 : India has taken another decisive leap in global trade diplomacy by concluding a landmark Free Trade Agreement (FTA) with New Zealand. Finalised within months of launch, the India–New Zealand FTA stands out as one of India’s fastest-concluded and most comprehensive trade agreements to date.
Coming shortly after India’s CEPA with Oman and trade agreements with the UK and EFTA nations, this FTA strengthens India’s expanding economic footprint across Oceania and the Pacific region.
Why the India–New Zealand FTA Is a Game-Changer
The agreement is designed to deliver direct economic benefits to Indian exporters, farmers, MSMEs, students and skilled professionals while safeguarding sensitive domestic sectors.
Key objectives include:
- Zero-duty access for Indian goods
- Long-term investment and job creation
- Secure mobility pathways for youth
- Agricultural productivity enhancement
- Strong services and AYUSH cooperation
- The FTA creates a transparent, predictable and future-ready trade framework, reducing costs and uncertainty for businesses on both sides.
India–New Zealand Trade: A Rapidly Growing Partnership
India and New Zealand already share robust people-to-people ties, strengthened by a vibrant Indian diaspora.
Key Trade Highlights
- New Zealand is India’s 2nd largest trading partner in Oceania
- Around 3 lakh Indians and NRIs live in New Zealand
- Merchandise trade jumped 49% from USD 873 million (2023–24) to USD 1.3 billion (2024–25)
- Indian exports grew 32%, maintaining a positive trade balance
- India’s services exports reached USD 634 million, led by IT, travel and business services
100% Duty-Free Access: Biggest Win for Indian Exporters
Under the FTA, New Zealand will eliminate import duties on all 8,284 tariff lines for Indian goods from the date of implementation.
Earlier tariffs of up to 10% on key Indian products will now drop to zero, giving Indian exporters a decisive price advantage.
Major Beneficiary Sectors
- Textiles & apparel
- Leather & footwear
- Engineering & auto components
- Pharmaceuticals
- Plastics & rubber
- Processed foods
- Agriculture & marine products
This zero-duty access is expected to boost exports, expand MSMEs and create large-scale employment.
USD 20 Billion Investment Commitment
New Zealand has committed to investing USD 20 billion in India over the next 15 years, supporting:
- Manufacturing
- Technology & innovation
- Infrastructure
- Services and startups
This long-term investment strengthens strategic economic cooperation and boosts India’s growth momentum.
Agriculture & Farmer-Centric Growth
A standout feature of the FTA is the Agricultural Productivity Partnership, focused on technology transfer rather than unchecked imports.
What Farmers Gain
- Centres of Excellence for apples, kiwifruit and honey
- Improved planting material & orchard management
- Post-harvest and cold-chain support
- Sustainable beekeeping practices
Balanced Market Access
Limited imports of apples, kiwifruit and Manuka honey will be allowed through Tariff Rate Quotas (TRQs) with:
- Minimum Import Prices
- Seasonal controls
- Continuous monitoring
This ensures consumer choice without harming Indian farmers.
MSMEs & Labour-Intensive Sectors Get a Major Push
The FTA gives a strong boost to India’s job-creating sectors:
- Textiles and garments
- Leather and footwear
- Gems & jewellery
- Engineering goods
- Processed food products
By integrating MSMEs into global value chains, the agreement supports Make in India and Atmanirbhar Bharat goals.
Sector-Wise Export Opportunities
Agriculture
- 1,379 tariff lines
- Tariffs up to 5% eliminated
- Strong demand for Indian spices, tea, coffee, fruits, cereals
Marine Products
- Zero-duty access
- Enhanced competitiveness in NZ’s import market
Textiles & Clothing
- Earlier tariffs up to 10% now zero
- Access to NZ’s USD 1.9 billion textile import market
Engineering Goods
- 1,396 tariff lines
- Zero duty on machinery, electronics, auto parts
- NZ engineering imports worth USD 11 billion
Pharmaceuticals
- Zero duty on 90 tariff lines
- Faster regulatory approvals
Services, AYUSH & Knowledge Economy
New Zealand has offered its best-ever services package, covering:
- 118 committed sectors
- MFN treatment across 139 sectors
- Historic AYUSH Breakthrough
For the first time, New Zealand has signed a Traditional Medicine & Wellness Annex, recognising:
- Ayurveda
- Yoga & Naturopathy
- Siddha, Unani, Sowa-Rigpa, Homoeopathy
This promotes India as a global wellness and medical value travel hub, alongside collaboration with Maori health systems.
Student & Professional Mobility: Biggest Youth Opportunity
Students
- Work 20 hours/week guaranteed
- Extended post-study visas:
- STEM Bachelor: 3 years
- Master’s: up to 3 years
- PhD: up to 4 years
Skilled Professionals
- 5,000 visas for Indian professionals
- Includes AYUSH practitioners, yoga instructors, chefs, musicians
- IT, healthcare, engineering, education and construction sectors covered
Working Holiday Visa
- 1,000 young Indians annually
- 12 months multiple-entry stay
Regulatory Ease & Trade Facilitation
- Customs clearance within 48 hours (24 hours for perishables)
- Electronic documentation & advance rulings
- Strong Rules of Origin to prevent misuse
- EU-level GI protection within 18 months
What Lies Ahead
The FTA text will be published after a joint announcement. The agreement is expected to be signed after domestic approvals and enter into force next year, unlocking immediate benefits for Indian exporters and professionals.
Final Word
The India–New Zealand FTA is more than a trade deal - it is a strategic economic partnership that strengthens India’s role in global value chains. With zero-duty exports, mobility opportunities, investment inflows and agricultural cooperation, the agreement delivers inclusive, future-ready growth.
From farmers and MSMEs to students and skilled professionals, the FTA reinforces India’s rise as a trusted, confident and globally integrated economy, powering the vision of Viksit Bharat 2047.
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