Zero-duty market access to Indian exports, pledge to invest $20 billion, and more: Highlights of India-New Zealand free trade agreement

The following are the highlights of the India-New Zealand free trade agreement, closure of negotiations for which was announced on Monday (December 22, 2025).

The pact is likely to be signed in three months and it is expected to be implemented next year.

• Zero Duty market access on 100% of India’s exports. India has offered tariff liberalisation in 70% lines covering 95% of New Zealand India Bilateral trade.

• 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.

• Launched on March 16th 2025, the fastest with a Developed Country FTA concludes the year on a high note for all Indian exports including textiles, pharmaceuticals, leather, Engineering Goods, Agricultural products

• Dedicated quota of Temporary Employment Entry visa for 5,000 professionals and 1,000 Work and Holiday Visas.

• New Zealand has committed to facilitate investments of $20 billion into India over the next fifteen years.

• Establishment of Agricultural Productivity Partnerships through Centres of Excellence by New Zealand for Apples, Kiwifruit, and Honey to boost productivity.

• Duty free inputs for India’s Manufacturing Sector: Wooden logs, coking coal, waste and scraps of metals.

• Cooperation has been agreed in AYUSH, culture, fisheries, audio visual tourism, forestry, horticulture and traditional knowledge systems.

• Apart from tariff liberalisation, the FTA includes provisions to address non-tariff barriers through enhanced regulatory cooperation.

• Bilateral merchandise trade reached $1.3 billion in 2024–25, while total trade in goods and services stood at approximately $2.4 billion in 2024, with services trade alone reaching $ 1.24 billion.