Historic milestone! New Zealand commits to an investment worth USD 20 billion in India under the India-New Zealand Free Trade Agreement

Under the guidance and leadership of PM Narendra Modi and NZ PM Christopher Luxon and with the close & collaborative engagement between Union Minister of Commerce and Industry Piyush Goyal and his counterpart, Minister Todd McClay, India and New Zealand have successfully concluded a landmark Free Trade Agreement in a record nine months.

India=New Zealand FTA Key Outcome 1

The FTA marks a decisive shift in bilateral economic engagement, dismantling tariffs on 95% of New Zealand’s exports, while granting Indian exporters unfettered, zero-duty access across the New Zealand market, which include textiles, apparel, leather, footwear, marine products, gems and jewelry, handicrafts, engineering goods and automobiles. The agreement opens a wide corridor of opportunity for Indian industry and signals a new chapter in trade-led growth between the two nations.

India=New Zealand FTA Key Outcome 2

Under the India-New Zealand Free Trade Agreement, India will eliminate tariffs on sheep meat, wool, coal, and nearly all forestry  and wood exports. India will also allow duty-free access for dairy and other food ingredients for re-exports. However, to ensure protection for Indian farmers and the domestic dairy-agro industry, this market access excludes dairy, coffee, milk, cream, cheese, yoghurt, whey,
caseins, onions, sugar, spices, edible oils, and rubber.

India’s Signed FTA In 5-Years.

This Free Trade Agreement marks India’s third FTA sign-up this year, following a free trade agreement with the UK in July 2025 and free trade agreement with Oman earlier this week of December 2025.

Free Trade Agreement’s key outcome

India=New Zealand FTA Key Outcome 3

1. Upon entry into force, the India New Zealand Free Trade Agreement will ensure Zero duty on 100% of India’s exports, with tariff elimination across all tariff lines. It will benefit farmers, MSMEs, workers, artisans, women-led enterprises, and youth, while providing immense opportunities for labour-intensive sectors such as textiles, apparel, leather, and footwear. Sectors like engineering & manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals & chemicals will also stand to benefit.
2. India New Zealand Free Trade Agreement provides a significant boost to investments, with New Zealand committing to facilitating $20 billion in FDI into India over 15 years, targeting manufacturing, infrastructure, services, innovation and job creation domain.
3. With a focus on empowering farmers, the FTA opens new opportunities for Indian agricultural products in New Zealand’s markets, including fruits, vegetables, coffee, spices, cereals, and processed foods. Through the Agricultural Productivity Partnership, Centres of Excellence, and access to New Zealand’s advanced agri-technologies, farmers will significantly benefit from higher productivity, improved quality, and higher incomes. Targeted initiatives for horticultural products such as honey, kiwi fruit, and apples further strengthen the sector and support sustainable growth.
4. In view of domestic sensitivities, India has safeguarded agriculture and allied products, including dairy, sugar, coffee, spices, edible oils, precious metals (gold and silver), precious-metal scrap, copper cathodes, and rubber-based products, thereby ensuring the protection of farmers, MSMEs, and domestic industries.
5. The FTA creates new opportunities for India’s services sector, spanning IT & ITeS, finance, education, tourism, construction, and other areas. New Zealand’s first-ever annexes on health, traditional medicine, student mobility, and post-study work open up unprecedented avenues for Indian professionals and students. In addition, enhanced mobility provisions, including working holiday visas, post-study work pathways, and a dedicated quota of 5,000 temporary employment visas for skilled Indian professionals, will enable Indian talent to access better global opportunities.

India=New Zealand FTA Key Outcome 4

India currently ranks as New Zealand’s 12th largest export market overall, accounting for roughly 1.5 percent of exports. This mutually beneficial agreement will further strengthen the India-New Zealand economic partnership and advance India’s journey towards the vision of Viksit Bharat 2047.

On India-New Zealand FTA deal, India’s Prime minister Narendra Modi tweeted –

An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment!

My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement.

Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries.

India PM Narendra Modi With New Zealand Prime Minister Christopher Luxon During Initiation Of India-NZ Trade Talk.

The India-NZ partnership is going to scale newer heights. The FTA sets the stage for doubling bilateral trade in the coming 5 years.

India welcomes investment worth over USD 20 billion from New Zealand across diverse sectors. Our talented youth, vibrant startup ecosystem and reform-driven economy offer a strong foundation for innovation, growth and long-term partnership.

At the same time, we continue to strengthen cooperation in other areas like sports, education and cultural linkages.

This FTA ensures:

Enhanced market access. Deeper investment flows. Numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth.

Tagging New Zealand PM Christopher Luxon.