India-New Zealand FTA: Expanded market access, high-value opportunities — Here's how our services sector benefits
According to the Centre, this deal offers the best-ever market access and services offer by New Zealand, unlocking high-value opportunities for skilled professionals, startups and enterprises across 118 service sectors.
India-New Zealand free trade agreement: India and New Zealand today signed the FTA which the government said encompasses “artisans, farmers, MSMEs, tariffs, talent, women and youth”. In a series of posts on social media platform X (formerly Twitter), Union Commerce Minister Piyush Goyal highlighted how the deal provides new opportunities for the services and mobility sectors.
An official release from the Ministry of Commerce & Industry said the deal provides the “best-ever market access and services offer by New Zealand, unlocking high-value opportunities for skilled professionals, startups and service-led enterprises, covering 118 service sectors”.
‘Empowerment for exports, skills, investment and services’
Goyal in his posts added that the deal “marks a defining milestone in India’s engagement with the developed world” and that at its heart, the agreement is “empowerment for exports, agricultural productivity, student mobility, skills, investment and services”.
“The investment commitment of $20 billion from New Zealand signals strong confidence in India’s growth story. It places special emphasis on strengthening MSMEs, fostering innovation, and enabling women-led enterprises to thrive in global markets,” he added.
Key sectors of interests to benefit
As per the statement, when it comes to services, the India-New Zealand FTA provides the “best-ever offer” from the southern country to empower Indian “youth, women and professionals”.
- Market access commitments to India in New Zealand in about 118 services sectors.
- This includes key sectors of interest to India: Audio visual services, computer related services, construction services, distribution services, education services, environmental services, financial services, other business services, professional services, telecommunication services, tourism and travel related services, etc.
- The FTA also provides India with most-favoured nation commitment in about 139 sub-sectors which include major interests' areas of India.
Bilateral trade: strong momentum, vast potential
The statement noted that total trade in goods and services between India and New Zealand reached $2.4 billion in 2024 and has shown strong bilateral growth in recent years. Bilateral merchandise trade in FY2024-25 stood at $1.3 billion registering a growth of 49% over the trade in previous year.
"With the FTA now signed, eliminating tariffs, enhancing services access, securing “20 billion in investment, and establishing robust institutional frameworks, the India-New Zealand FTA is expected to boost bilateral trade significantly in the coming years, create employment opportunities, expand exports, and strengthen a deeper and more resilient economic partnership between the two countries,” it added.
‘Once in a generation opportunity’
Todd McClay, Minister for Trade and Investment for New Zealand called the deal a “once-in-a-generation” opportunity to boost exports, create jobs, and strengthen bilateral economic ties.
Overall, the deal covers all tariff lines, or product categories, and is expected to significantly boost MSMEs and employment. It is also likely to enhance competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods. Notably, New Zealand had earlier maintained peak tariffs of up to 10% on key Indian exports, including ceramics, carpets, automobiles, and auto components.
The newly signed India-New Zealand pact will come into force on a date agreed upon by both sides.