• Source:JND

India-New Zealand Free Trade Agreement: Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon announced the conclusion of negotiations for a free trade agreement on Monday, December 22, during a telephone conversation. The deal is set to strengthen economic ties, with officials projecting that bilateral trade will double within five years. Additionally, New Zealand has committed to facilitating investments of USD 20 billion in investments into India over the next 15 years.

The FTA was concluded nine months after negotiations began during Luxon’s visit to India in March. The pact is expected to be officially signed within the next three months, with implementation likely next year.

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India-New Zealand Free Trade Agreement: What To Expect

- Under the India-New Zealand Free Trade Agreement, New Zealand will grant zero-duty market access on 100 per cent of Indian exports.

- New Zealand has committed to facilitating USD 20 billion in investments into India over the next 15 years.

- India has offered tariff concessions on 70 per cent of its product lines, covering 95 per cent of India-New Zealand bilateral trade, news agency PTI reported.

- The deal significantly boosts India's labour-intensive sectors, including textiles, apparel, leather, footwear, and marine products.

- The pact enhances the global reach of Indian gems and jewellery, handicrafts, engineering goods, and automobiles.

- Launched on March 16, 2025, the FTA concluded as India’s fastest FTA ever signed with a developed country, providing a major end-of-year boost for Indian pharmaceutical and agricultural exports, the report added.

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- A dedicated quota has been established for Temporary Employment Entry visas for 5,000 Indian professionals and 1,000 Work and Holiday visas.

- Dedicated Centres of Excellence will be established by New Zealand for apples, kiwifruit, and honey to share advanced technology and boost agricultural yields.

- To lower the cost for the Indian manufacturing industry, duty-free access to raw materials like wooden logs, coking coal, and metal scrap.

- Both nations have agreed to deepen ties across diverse sectors, including AYUSH, fisheries, forestry, horticulture, and traditional knowledge systems.

- Apart from tariff liberalisation, the FTA establishes a framework for regulatory cooperation to identify and remove non-tariff barriers that slow down trade.

- The agreement acknowledges the growing importance of the services sector, which already accounts for USD 1.24 billion of the total bilateral exchange.

(With PTI Inputs)


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