- India and New Zealand will sign their Free Trade Agreement on April 27, 2026, in New Delhi
- The FTA was negotiated rapidly, concluding within nine months from March to December 2025
- Over 8,000 Indian products will become duty-free in New Zealand from the FTA's start date
India and New Zealand are set to formally sign their Free Trade Agreement on April 27, 2026, at Bharat Mandapam in New Delhi. The pact will be signed in the presence of Commerce and Industry Minister Piyush Goyal and Todd McClay, New Zealand's Minister for Trade and Investment.
The event will mark the culmination of what has been described as one of India's fastest-ever trade negotiations, the Ministry of Commerce and Industry said.
How It Was Reached
India and New Zealand announced the start of FTA negotiations in March 2025. After multiple rounds of discussions, the agreement was concluded in December 2025 — making it one of India's fastest-concluded FTAs. Commerce Minister Piyush Goyal, who welcomed McClay to New Delhi ahead of the signing, called it a watershed moment, stating: "His visit marks a defining moment in our bilateral journey, reflecting the trust, shared values, and common vision that underpin our partnership for sustainable economic growth, driving prosperity for both our nations."
What India Gets
Under the agreement, all, more than eight thousand products exported from India will become 100% duty-free from the very first day it comes into effect. Currently, New Zealand imposes an average tariff of 2.2 % on Indian goods, with around 450 items — including textiles, ceramics, and automobiles — facing tariffs of up to 10 per cent. Indian professionals in IT, healthcare, and AYUSH sectors are also set to gain easier access to New Zealand and Pacific Island markets.
Additionally, under the services component of the FTA, New Zealand will offer temporary work visas to around 5,000 Indian professionals annually, with stays of up to three years. Sectors such as IT, healthcare, and AYUSH — including yoga instructors and chefs — are among those expected to benefit. The agreement also opens a broader gateway to Oceania and Pacific Island markets for Indian service providers.
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What New Zealand Gets
In return, 70.03% of items — accounting for 95 % of the total import value — entering India from New Zealand will either be exempted from duties or see reductions. New Zealand PM Christopher Luxon has enthusiastically backed the deal, saying it would bring "more jobs, higher wages and more opportunities" for New Zealand.
Sensitive Sectors Kept Out
India has drawn a firm line on agriculture. India has made no concessions on sensitive sectors such as dairy products, onions, sugar, spices, edible oil, and rubber, in order to safeguard domestic farmers and industries, as per the agreement.
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The Bigger Picture
Bilateral merchandise trade between India and New Zealand stood at $1.3 billion in 2024–25, while total trade in goods and services reached about $2.4 billion. The FTA aims to double that. The agreement is also expected to attract nearly $20 billion in investments over the next 15 years, and positions India more firmly within the Indo-Pacific economic architecture. India has now finalised FTAs with three members of the Five Eyes alliance — Australia, the UK, and New Zealand — with negotiations ongoing with the US and Canada.
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