India, New Zealand sign Free Trade Agreement to boost economic ties

New Delhi, Dec 22 (BVI) In a significant development,  India and New Zealand have concluded a Free Trade Agreement (FTA), which includes elimination of tariffs on 100% of its tariff lines and provides duty-free access for all Indian exports in the Kiwi nation which committed to facilitate USD 20 billion investment in this country over the next 15 years.

The FTA establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, drives trade and investment-led growth, fosters innovation for agricultural productivity, and enhances MSME participation to strengthen long-term economic resilience, Commerce Minister Piyush Goyal said while briefing the media persons here today.

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.

The FTA delivers New Zealand’s best and most ambitious services offer in any of its FTAs to date. India has secured commitments across a wide range of 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.

The pact provides improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework, strengthening people-to-people ties and expanding global exposure for Indian youth.

It 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, according to the government.

This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade, it said.

It also entails establishment of dedicated Agri-Technology Action Plans on kiwifruit, apples and honey, focus on productivity enhancement, technology, research collaboration, quality improvement and value-chain development, to strengthen domestic capabilities and supporting income growth for Indian farmers.

The cooperation includes the establishment of Centres of Excellence, improved planting material, capacity building for growers and technical support for orchard management, post-harvest practices, supply chain performance, and food safety.

Projects for apple cultivators and sustainable beekeeping practices will enhance production and quality standards.

The Agreement significantly strengthens the investment partnership between the two countries.

New Zealand has committed to facilitate investments of USD 20 billion into India over the next fifteen years, thereby supporting manufacturing, infrastructure, services, innovation and employment under India’s Make in India vision, Goyal said.

Indian enterprises are also expected to benefit from their presence in New Zealand and access the wider Pacific Island markets, he said.

Boost to Pharma and Medical Devices through faster regulatory Access by enabling acceptance of GMP and GCP inspection reports from comparable regulators, including approvals by the US FDA, EMA, UK MHRA, and other comparable regulators.

This will reduce duplicative inspections, lower compliance costs, and expedite product approvals, thereby facilitating the growth of India’s pharmaceutical and medical devices exports to New Zealand.

Commitment has been extended on Geographical Indications, including amendment of its law to facilitate the registration of India’s wines, spirits and ‘other goods’, a benefit that was accorded to the EU by New Zealand- to be completed under defined timelines.

Cooperation has been agreed in AYUSH, culture, fisheries, audio visual tourism, forestry, horticulture and traditional knowledge systems. The FTA promotes India’s AYUSH systems internationally, encourages medical value travel, and positions India as a global wellness hub.

Apart from tariff liberalisation, the FTA includes provisions to address non-tariff barriers through enhanced regulatory cooperation, transparency, and streamlined customs, Sanitary and Phyto-sanitary (SPS) measures and Technical Barriers to Trade disciplines. All systemic facilitations and fast-track mechanisms for imports that serve as inputs for our manufactured exports ensure that tariff concessions translate into effective and meaningful market access.

India–New Zealand economic engagement has shown steady momentum.

Bilateral merchandise trade reached USD 1.3 billion in 2024–25, while total trade in goods and services stood at approximately USD 2.4 billion in 2024, with services trade alone reaching USD 1.24 billion, led by travel, IT and business services.

The FTA provides a stable and predictable framework to unlock the full potential of this relationship, the government said. (BVI)