India-New Zealand FTA: New Zealand Prime Minister Christopher Luxon on Saturday hailed the country's recently-inked the Free Trade Agreement with India, saying it will benefit 1.4 billion Indians.
In a post on X, Luxon said that the India-New Zealand FTA will generate more jobs and higher income, apart from benefitting 1.4 billion Indian consumers through more exports.
“We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers. Fixing the Basics. Building the Future,” Luxon said in a post on X.
India-New Zealand FTA
India and New Zealand announced a free trade agreement on 22 December, concluding the comprehensive, balanced and forward-looking trade deal, marking one of New Delhi's most successful economic and strategic milestone in its engagement with the Indo-Pacific region.
The India-New Zealand FTA, which was announced in March this year, stands out as one of the fastest-concluded trade deals in the country's history.
The trade deal provides “unprecedented duty-free access for Indian exports to New Zealand while safeguarding India’s sensitive sectors, strengthening economic resilience, and promoting inclusive growth aligned with India’s national priorities.”
What does the India-New Zealand FTA seek to do?
The negotiations were formally launched on March 16, 2025 during the meeting between Minister of Commerce and Industry Piyush Goyal and Minister for Trade and Investment of New Zealand Todd McClay.
The economic partnership between India and New Zealand will promote employment, facilitate skill development, drive growth led by trade and investment, foster innovation for agricultural productivity, and enhance MSME participation to strengthen long-term economic resilience.
What are the advantages for India?
The India-New Zealand trade deal eliminates all tariffs on 100% Indian exports, with which they will enjoy duty free access.
This market access enhances the competitiveness of India's labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains, according to the commerce ministry.
New Zealand has also offered its commitment across 118 services sectors, with Most-Favoured Nation (MFN) treatment in 139 sectors.
These include high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment, according to the commerce ministry.
The FTA Opens Skilled Employment Pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years.
