India and New Zealand signed a Free Trade Agreement (FTA) on 27 April 2026 in New Delhi. The agreement was signed by India’s Commerce Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.
Free Trade Agreement
A Free Trade Agreement is a pact between two or more countries that reduces or removes customs duties on specified goods and services. FTAs are used to expand market access, lower trade barriers, and set rules on trade-related matters such as customs procedures and investment.
Goods Trade Provisions
- The FTA provides immediate duty-free access for 100% of India’s exports to New Zealand.
- The covered Indian export sectors include textiles, leather, ceramics, automotive components, and engineering goods.
- Tariffs on 95% of New Zealand’s current imports to India will be reduced or eliminated.
- Products such as apples, kiwifruit, Manuka honey, and wine are among the items covered by the tariff concessions.
Investment And Mobility Provisions
- New Zealand has committed to invest $20 billion in India over 15 years.
- India received $89 million in Foreign Direct Investment from New Zealand between April 2000 and December 2025.
- The agreement provides a Temporary Employment Entry Visa pathway for skilled Indian professionals with a quota of 5,000 visas for up to three years.
- The pact also includes a Working Holiday Visa scheme for 1,000 young Indians every year.
Negotiation Timeline And Exclusions
The FTA negotiations were launched in March 2025 and concluded by December 2025. India excluded all dairy products, specific animal and vegetable products, arms and ammunition, and certain metal products from the agreement.
India-New Zealand Trade Context
India and New Zealand are members of the Commonwealth and the World Trade Organization. New Zealand Prime Minister Christopher Luxon described the pact as a “once-in-a-generation agreement” for access to India’s 1.4 billion people market.
Last Modified: April 27, 2026