India and New Zealand just inked a major trade deal
India and New Zealand have concluded a Free Trade Agreement (FTA) that gives a significant portion of Indian exports zero-duty access to the Kiwi market.
Finalized in December 2025, the FTA covers key sectors including textiles and gems, pharma, and engineering services—setting the stage for a big boost in trade between the two countries.
What's in it for both sides?
New Zealand will invest $20 billion in India over 15 years, focusing on skill-building, technology transfer, and services across a broad range of sectors including education.
In exchange, India is dropping tariffs on 95% of New Zealand goods.
There are also smoother pathways for IT pros, engineers, and students—think 20-hour work permits and post-study visas.
Why does this matter?
The deal opens up New Zealand's high-income market to Indian businesses while helping create more jobs back home through new value chains.
Negotiated in just nine months, it aims to double current trade—even with global headwinds like US tariff hikes.
MSMEs get a push; farmers stay protected
The FTA supports small businesses across sectors like healthcare and construction but leaves out dairy and agriculture.
This move is meant to shield Indian farmers from tough overseas competition while still letting local industries tap into new opportunities.