New Delhi: Union commerce minister Piyush Goyal and New Zealand’s minister for trade & investment Todd McClay officially signed the landmark India-New Zealand Free Trade Agreement (FTA) at Bharat Mandapam in New Delhi on Monday.
This marks the start of a “new generation” pact that was revived in March 2025 and concluded in record time. The deal is to double bilateral trade to $5 billion within five years, and a $20 billion investment commitment into India.
Goyal highlighted the deep-rooted synergy between the two nations after the signing ceremony. Addressing the India-New Zealand Business Forum, Goyal noted that the “strong participation and ideas shared by business leaders” show a vast potential for innovation-led collaboration.
India’s vast market and manufacturing strengths “complement New Zealand’s expertise in agri-tech, clean energy, and fintech”, he emphasised, expressing his commitment to unlocking the full potential of the #IndiaNZFTA to create fresh opportunities for businesses and further deepen the economic partnership between the two democracies, as per Republic TV.
McClay described the bilateral bond as being at an all-time high. “This once-in-a-generation agreement gives our exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world. With so much global unrest, a trade agreement with India has never been more important for New Zealand’s prosperity.”
India is a “strategic priority”, he said and hinted at the future launch of direct flights as a “catalyst for tourism” and closer people-to-people ties.
What the FTA Includes:
1. $20 Billion Investment
New Zealand has committed to facilitating USD 20 billion in investments into India over the next 15 years, primarily targeting manufacturing and infrastructure under the Make in India initiative.
2. 100% Duty-Free Access
In a massive win for Indian exporters, New Zealand has granted Zero Duty access to 100% of Indian goods (8,284 product lines). This provides an immediate boost to:
Textiles & Apparel: Garments and handloom products.
Leather & Footwear: Immediate tariff elimination to position India as a global hub.
Gems & Jewellery: Expected to see a significant surge in export volume.
Automobiles & Engineering Goods.
3. 5,000-Visa
The deal includes a first-of-its-kind professional mobility pathway: 5,000 Annual Visas: A dedicated quota for Indian professionals (IT, Engineering, Healthcare).
Special Categories: Guaranteed slots for Yoga instructors, Indian chefs, and AYUSH practitioners.
Student Rights:
No caps on student numbers, with 3 years of post-study work rights for STEM graduates and 4 years for Doctoral scholars.
4. Safeguards for Farmers
To protect domestic interests, India successfully negotiated the total exclusion of sensitive sectors:
Dairy Products (Milk, cheese, yoghurt).
Sugar, Onions, and Edible Oils.
