India–New Zealand Free Trade Agreement (FTA) Signed

India and New Zealand have signed a comprehensive Free Trade Agreement at Bharat Mandapam, New Delhi, aimed at enhancing bilateral trade, promoting exports, and strengthening economic ties. The agreement ensures 100% duty-free access for Indian exports to New Zealand and includes provisions for investment, services, agriculture, and talent mobility.

Key Highlights:

Trade & Market Access:

100% duty-free access to New Zealand market for Indian exports.

Covers all tariff lines, benefiting MSMEs and labour-intensive sectors.

India liberalized 70% tariff lines covering 95% trade value.

Sensitive sectors (like dairy, sugar, edible oils) excluded for domestic protection.

Investment & Economy:

New Zealand committed $20 billion investment in India.

Focus areas:

Agriculture

Manufacturing

Infrastructure

Start-ups & emerging technologies

Services & Mobility:

Market access in 118 service sectors.

Most Favoured Nation (MFN) commitments in ~139 sub-sectors.

5,000 annual visa quota for Indian professionals.

Post-study work visas:

3 years (Bachelor’s/Master’s STEM)

4 years (PhD)

Agriculture & Rural Sector:

Centres of Excellence for:

Apples

Kiwifruit

Manuka honey

Focus on productivity, research, and farmer income.

Tariff Rate Quota (TRQ) system introduced for select imports.

Manufacturing & Industry

Duty-free imports of inputs like:

Coking coal

Wooden logs

Metal scrap

Boost to sectors:

Textiles

Leather

Engineering goods

Processed food

AYUSH & Cultural Cooperation

Promotion of Ayurveda, Yoga, and traditional medicine globally.

Collaboration in:

Creative industries

Tourism

Traditional knowledge

Additional Key Facts:

Agreement concluded in 9 months → one of India’s fastest FTAs.

India’s 9th FTA with developed economies, covering ~65–70% of global GDP.

Bilateral trade currently ~$1.3 billion (goods) and ~$2.4 billion (total).

New Zealand is India’s 2nd largest trading partner in Oceania.

Agreement aligns with Viksit Bharat 2047 vision.

Emphasis on:

Women-led enterprises

MSMEs

Skill mobility

Strengthens India’s presence in the Indo-Pacific economic framework.