India-New Zealand FTA explained: Zero tariffs, $20B investment, 5,000 visas
What's the story
India and New Zealand are set to sign a Free Trade Agreement (FTA) today at Bharat Mandapam in New Delhi. The deal will be signed by Union Commerce and Industry Minister Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McClay. The agreement was launched on March 16, 2025, and concluded on December 22, 2025, making it one of India's fastest trade deals from negotiation to signing.
Implementation timeline
Duty-free access for Indian products
The FTA will need domestic ratification in both countries before it can officially come into effect, which is expected later in 2026. Under the agreement, all 8,284 Indian export products will get duty-free access to the New Zealand market from day one. This is a major shift from New Zealand's previous average tariff of 2.2% on Indian goods across about 450 product categories such as textiles, ceramics, and automobiles.
Sector benefits
Pharmaceuticals, medical devices get faster regulatory access
The FTA gives immediate duty-free status to textiles and apparel, including garments, home textiles, man-made fibers, handloom products, and furnishings. The leather and footwear sector will see tariffs cut from 5% to zero. India's pharmaceutical and medical devices sector will get faster regulatory access in New Zealand under the agreement. The New Zealand government will accept Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) inspection reports from similar regulators of other countries like the US FDA.
Agricultural cooperation
Dedicated Agri-Technology Action Plan
The FTA also includes a dedicated New Zealand Agri-Technology Action Plan to assist Indian farmers with technical know-how in kiwi, apple, and honey production. India has offered market access on 70% of its tariff lines, covering 95% of the total bilateral import value from New Zealand. Major export categories that will benefit include wool, wine, wood, coal and fresh fruits such as avocados and blueberries.
Exclusions
Politically sensitive products excluded from FTA
India has kept 29.97% of its tariff lines representing 5% of bilateral import value outside the scope of the agreement. No duty concessions have been made in politically sensitive sectors to protect domestic farmers and industries. Excluded products include dairy products, vegetable products like onions and peas, sugar and artificial honey, animal vegetable and microbial fats and oils including edible oils, arms and ammunition as well as gems and jewelry.
Visa provisions
Mobility front and foreign direct investment (FDI) commitments
On the mobility front, New Zealand will open a temporary employment visa pathway for Indian professionals with 1,667 visas issued annually for an initial three-year period. The cap will be 5,000 such visa holders in New Zealand at any given time. New Zealand has also committed to facilitating $20 billion in Foreign Direct Investment into India over the next 15 years.