India-NZ FTA: Zero-duty access, $20B investment pledge
India-NZ FTA: Zero-duty access, $20B investment pledge
India offers zero-duty market access on 100% of exports to New Zealand, with tariff liberalisation on 70% of lines covering 95% of bilateral trade and a $20 billion investment pledge.
Negotiations for the India-New Zealand Free Trade Agreement concluded on December 22, 2025, paving the way for a pact that could be signed within about three months and implemented next year. The package includes zero-duty market access on 100% of India's exports to New Zealand, and tariff liberalisation on 70% of lines covering 95% of bilateral trade, a move set to boost labour-intensive sectors like textiles, apparel, leather goods, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
New Delhi describes this as the fastest FTA with a developed country in terms of timeline, launched March 16, 2025. As part of the agreement, New Zealand commits to facilitating investment of $20 billion into India over 15 years, with collaborations in agriculture productivity partnerships for apples, kiwifruit, and honey to boost productivity. The pact also includes duty-free inputs for India's manufacturing sector such as wooden logs, coking coal, and scraps of metal. There will be enhanced regulatory cooperation to tackle non-tariff barriers, and cooperation across AYUSH, culture, fisheries, audiovisual tourism, forestry, horticulture, and traditional knowledge systems.
Trade in 2024-25 saw bilateral merchandise trade of about $1.3 billion, with total goods and services trade around $2.4 billion and services alone reaching about $1.24 billion. Officials say the FTA will boost employment, enable greater mobility of professionals, and spur growth through a more integrated trade and investment framework.
