Trade deal to boost IT, education, tourism sectors
In a significant step to strengthen global trade ties, India and New Zealand signed a landmark Free Trade Agreement (FTA) on April 27, 2026, aimed at boosting trade in goods and services while enhancing bilateral investments.
The agreement provides for the removal of tariffs on 100% of Indian exports to New Zealand, marking a major win for Indian businesses. Union Commerce Minister Piyush Goyal described the pact as a “win-win” for both nations, highlighting that India is steadily expanding its trade network and will soon have nine such agreements with 38 advanced economies.
Drawing a cricket analogy, Goyal said both countries “love cricket” and will similarly build a strong and lasting partnership in business. New Zealand Prime Minister Christopher Luxon termed the deal a “once-in-a-generation agreement,” underlining its long-term economic significance.
Under the FTA, several imported goods in India — including wine, seafood like mussels and salmon, kiwifruit, apples, honey, wood, wool, vegetable oil, and medicines — are expected to become gradually cheaper as duties are reduced over periods ranging from 7 to 10 years.
Duties on metals such as iron, steel, and aluminium scrap will also be eliminated in phases. However, India has protected sensitive sectors by excluding products like dairy, sugar, key vegetables, and certain metals to safeguard farmers and MSMEs.
The agreement also brings major benefits in the services sector, granting Indian professionals access to high-value industries such as IT, education, healthcare, construction, and tourism. A special provision allows 5,000 skilled Indian professionals to work in New Zealand annually for up to three years under a new visa pathway. Additionally, Indian wines and spirits will gain duty-free access to the New Zealand market.
In a major investment boost, New Zealand has committed $20 billion (₹1.88 lakh crore) to India over the next 15 years across sectors like IT, education, tourism, and infrastructure. The bilateral trade between the two nations currently stands at $2.4 billion, and the FTA is expected to significantly expand this figure in the coming years.
