New Delhi: India and New Zealand are all set to ink a Free Trade Agreement (FTA) to boost goods and services exports while deepening economic cooperation between both countries. This marks the seventh major FTA for India in recent years, after Oman, the UK, the UAE, the European Free Trade Association (EFTA) bloc, Australia and Mauritius.
According to the FTA, New Zealand will allow low tariffs on agricultural exports from India for fruits and vegetables, coffee, spices, cereals and processed foods, while India will allow import of New Zealand’s apples, kiwifruit, manuka honey and milk albumin, subject to seasonal restrictions.
New Zealand has also committed to allowing Indian exports of IT and IT-enabled services, along with the elimination of tariffs on labour-intensive sectors like textiles, leather, footwear, marine products, engineering products and automobiles.
The negotiations for the agreement started on March 16, 2025 during the meeting between Minister of Commerce and Industry Shri Piyush Goyal and Hon’ble Minister for Trade and Investment of New Zealand Mr. Todd McClay. The Agreement has been one of India’s fastest for FTAs, aligning with PM Modi’s Viksit Bharat 2047 vision.
Under the guidance and leadership of PM @NarendraModi ji and NZ PM @ChrisLuxonMP, and with the close & collaborative engagement of my friend and counterpart Minister Todd McClay, India and New Zealand have successfully concluded a landmark Free Trade Agreement in a record nine… https://t.co/ZlAA8Wfpdd pic.twitter.com/ace3nzINaD
— Piyush Goyal (@PiyushGoyal) December 22, 2025
“Today this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage” Shri Piyush Goel, Minister for Trade and Investment, said at the conclusion of the discussions.
“A new generation trade agreement built on tariffs, agricultural productivity, Investment and Talent with complementarity at the core. India’s strengths expand exports, support labour-intensive growth and power services. New Zealand gains deeper, more predictable access to India’s large and growing economy. The movement of people-students, professionals, and skilled workers converges these strengths.” Rajesh Agrawal, Commerce Secretary, added.
