India–New Zealand FTA Finalised: Landmark Deal to Double Trade, Unlock $20 Billion Investment.

Zero-Duty Access, $20bn Investment as India–NZ Sign FTA.

India and New Zealand have finalised a landmark Free Trade Agreement (FTA), signalling a major boost to bilateral trade, investment and strategic cooperation between the two countries. Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon jointly announced the deal after a telephonic conversation on Monday, calling it a decisive step towards deepening economic and people-to-people ties. 

Under the agreement, tariffs will be reduced or eliminated on 95 per cent of New Zealand’s exports to India, while India will gain zero-duty market access for 100 per cent of its exports to New Zealand. India has also offered tariff liberalisation across 70 per cent of tariff lines covering 95 per cent of bilateral trade. Concluded in a record nine months after talks began during PM Luxon’s India visit in March 2025, the FTA reflects strong political will on both sides to expand cooperation beyond trade into defence, education, sports, innovation and culture.

The agreement aims to double bilateral trade within five years and facilitate New Zealand investments worth USD 20 billion in India over the next 15 years. It provides major gains for services and mobility, including a dedicated quota of 5,000 temporary employment visas for professionals and 1,000 work-and-holiday visas annually.

The pact also strengthens India’s manufacturing sector through duty-free access to key inputs, while boosting agricultural collaboration via Centres of Excellence for apples, kiwifruit and honey to enhance productivity. Cooperation will expand into forestry, horticulture, fisheries, AYUSH, traditional knowledge systems, culture and audiovisual tourism. With bilateral merchandise trade at USD 1.3 billion and total goods and services trade at USD 2.4 billion in 2024–25, the FTA is expected to unlock new opportunities for businesses, MSMEs, farmers, students and youth, firmly positioning the India–New Zealand partnership for accelerated growth in the Indo-Pacific region.