India-New Zealand FTA opens market access, visa routes

India and New Zealand signed a free trade agreement Monday, opening market access for goods ranging from sheep meat and wine to pharmaceuticals, and creating new visa pathways for Indian professionals, in a deal both governments said would significantly expand a bilateral trade relationship currently valued at around $1.3 billion a year.

Commerce minister Piyush Goyal and New Zealand trade and investment minister Todd McClay signed the India-New Zealand Free Trade Agreement at Bharat Mandapam in New Delhi, with New Zealand Prime Minister Christopher Luxon welcoming the pact in a message.

Negotiations were launched in March 2025 and concluded on 22 December 2025, making it one of the fastest FTAs India has concluded with a developed country.

The 20-chapter agreement covers trade in goods, services, investment, trade remedies and dispute settlement.

Under its terms, tariffs on 95% of New Zealand exports to India will be eliminated or substantially reduced once fully implemented, with 57% of exports gaining duty-free access immediately, rising to 82% over time.

Indian exporters receive 100% duty-free access to New Zealand’s market from the date of entry into force. New Zealand has opened 118 service sectors, with most-favored-nation commitments across 139 sectors.

Key New Zealand export sectors covered include sheep meat, wool, wine, seafood, horticulture, forestry and manuka honey, though several products will be subject to quotas or phased tariff reductions.

The agreement includes a most-favored-nation clause under which New Zealand would automatically receive any improved market access India subsequently grants the European Union in areas such as wine and services, provided the India-New Zealand deal enters into force first.

Luxon said that clause alone would generate tens of millions of dollars in additional exports.

On mobility, India secured 5,000 three-year work visas annually for Indian professionals and 1,000 Work-and-Holiday visas. Officials said the agreement is expected to attract up to $20 billion in investment inflows into India.

Bilateral merchandise trade between the two countries reached $1.3 billion in fiscal 2024-25, a 49% year-on-year increase. New Zealand is India’s second-largest trading partner in Oceania, where India’s total merchandise trade stood at roughly $26 billion in 2024-25.

Goyal said the deal was India’s seventh major trade agreement in three-and-a-half years, with FTA negotiations with the European Union and the United States also advancing, which he said would take India’s total to nine agreements with 38 advanced economies covering roughly 65-70% of global GDP.

McClay called the agreement a “once-in-a-generation” opportunity that would boost exports, create jobs and strengthen bilateral economic ties.

New Zealand First leader Winston Peters, whose party is a coalition partner in the Luxon government, described the deal as a “disgraceful sellout,” citing concerns over investment and immigration settings.

The Labour Party characterized it as “high risk,” warning that New Zealand could face clawback provisions if it failed to meet implementation thresholds to India’s satisfaction.

The agreement requires ratification by both countries before it can take effect.

The FTA text and a National Interest Analysis were tabled in the New Zealand Parliament on Tuesday and referred to the Foreign Affairs, Defence and Trade Committee for public and parliamentary scrutiny, a process expected to take a minimum of six months. India is expected to complete ratification through executive approval.