India and New Zealand finalized a comprehensive free trade agreement on April 27, 2026, in New Delhi, marking one of the fastest FTA negotiations between India and a developed nation. The agreement was signed by Indian Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay under Prime Minister Narendra Modi’s leadership.
The deal grants India 100% duty-free access to New Zealand’s market across all tariff lines from the moment it takes effect, eliminating peak tariffs of up to 10% previously applied to ceramics, carpets, automobiles, and auto components. In exchange, India offered tariff liberalization on 70% of tariff lines covering 95% of New Zealand’s bilateral trade, while excluding 30% to protect sensitive domestic sectors including dairy, onions, chickpeas, sugar, edible oils, and gems and jewellery.
New Zealand committed to facilitating $20 billion in investment into India to support agriculture, manufacturing, infrastructure, startups, and emerging technologies. The agreement provides market access in 118 service sectors, including IT, professional services, telecommunications, and tourism, with Most-Favoured Nation commitments in 139 sub-sectors.
A landmark provision establishes a new Temporary Employment Entry Visa pathway for 5,000 Indian professionals at any given time, allowing stays up to three years in skilled occupations. For the first time in any New Zealand trade agreement, the deal removes numerical caps on Indian students and provides post-study work visas of up to three years for STEM graduates and four years for doctorate holders.
The agreement was negotiated in just nine months after launching in March 2025. Bilateral merchandise trade between the two nations stood at $1.3 billion in fiscal year 2024-25, representing 49% growth over the previous year.
Read Article: India’s FDI Surge Sets Stage for $90 Billion Milestone by FY26 Close
