India–New Zealand FTA To Grant Duty-Free Access, $20 Billion Investment Commitment

India and New Zealand are set to sign a Free Trade Agreement (FTA) on April 27, 2026, in New Delhi, enabling 100% duty-free access for Indian exports and outlining investment and mobility provisions, according to the Ministry of Commerce.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The agreement, finalised on December 22, 2025, after being launched on March 16, 2025, will come into force after ratification by both countries, expected later in 2026.

Duty-Free Access For Indian Exports

Under the pact, all 8,284 Indian export items will receive zero-duty access to New Zealand from the date of implementation, as per the Ministry of Commerce factsheet. Before the agreement, New Zealand imposed an average tariff of 2.2% on Indian goods, with some categories facing duties of up to 10%, according to Business Standard.

Sectors gaining immediate duty-free access include textiles, apparel, leather, footwear, engineering goods, electronics, chemicals, and agricultural products such as fruits, vegetables, coffee, cocoa, spices, and cereals, the factsheet stated.

In the pharmaceutical sector, New Zealand will accept inspection reports under Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) issued by regulators such as the U.S. Food and Drug Administration, European Medicines Agency, and the UK Medicines and Healthcare products Regulatory Agency, reducing compliance requirements, according to the Ministry of Commerce.

Market Access For New Zealand

India will provide tariff concessions on 70.03% of tariff lines, covering 95% of bilateral import value from New Zealand, as per official data. New Zealand's most important exports are wool, wine, wood, coal, and fresh fruits like avocados and blueberries.

The agreement also includes cooperation in sectors such as horticulture, forestry, fisheries, livestock, and apiculture, along with a dedicated agri-technology action plan.

Sensitive Sectors Excluded

India has excluded 29.97% of tariff lines, representing 5% of bilateral imports, from the agreement, according to Business Standard. These include dairy products, edible oils, vegetables such as onions and pulses, sugar, gems and jewellery, metals including copper and aluminium, and arms and ammunition.

Mobility And Visa Provisions

New Zealand will introduce a temporary employment visa pathway for Indian professionals, issuing 1,667 visas annually for an initial three-year period, with a cap of 5,000 visa holders at any given time, according to the Ministry of Commerce.

Investment And Services Commitments

Under the pact, there is an assurance of $20 billion worth of foreign direct investment into India by New Zealand over the next 15 years, with investments being made in sectors like infrastructure, renewable energy, agriculture, and technology, according to the Ministry of Commerce and Business Standard.

In addition, the pact grants Most Favored Nation status in about 139 sub-sectors of services such as financial services, tourism, digital services, and the creative industry.

Trade Baseline And Target

In 2024–25, the value of bilateral trade between India and New Zealand was around $1.3 billion, and the objective of the pact was to reach a level of $5 billion within five years, as per Business Today.

This represents a comprehensive agreement on expanding economic collaboration between India and New Zealand with regards to trade, investments, and mobility.