Historic India–New Zealand Free Trade Agreement Concluded — A New Chapter in Bilateral Trade

In a landmark development for global trade, India and New Zealand have successfully concluded negotiations on a comprehensive Free Trade Agreement (FTA), marking a major milestone in bilateral economic cooperation. The announcement was made on 22 December 2025 by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon following a strategic telephonic discussion between the two leaders.

What the FTA Means for Trade and Market Access

The newly agreed FTA is expected to transform economic ties between India and New Zealand, with key provisions aimed at expanding trade, boosting investments, and enhancing people-to-people engagement:

Zero-Duty Access for Indian Exports

India is set to gain zero-duty market access for 100% of its exports to New Zealand, providing an enormous boost to Indian exporters across sectors such as textiles, engineering goods, leather, marine products, and pharmaceuticals. 

Expanded Market Opportunity for New Zealand

The deal will also reduce or eliminate tariffs on about 95 % of New Zealand’s exports to India. This is projected to increase Kiwi exports by roughly NZ$1.1 billion to NZ$1.3 billion annually, particularly benefiting agricultural and horticultural products. 

Trade Expansion Goals

Officials anticipate that bilateral trade could double within the next five years, strengthening opportunities for businesses and investors on both sides.

Strategic & Long-Term Benefits

The India–New Zealand FTA goes beyond tariff elimination:

Investment Flow — New Zealand has committed to significant investment commitments (around US$20 billion) in the Indian market, underscoring long-term economic cooperation. 

Skilled Mobility & People-to-People Ties — The agreement includes provisions that expand work visa options and student mobility, facilitating closer engagement between Indian professionals and New Zealand institutions. This could help bridge skill gaps and promote international collaboration. 

Future-Ready Partnership — Negotiators have designed the pact to support growing sectors such as services, education, renewable energy, and digital trade, signaling a forward-looking approach to economic integration.

Timeline & Next Steps

Negotiations concluded: 22 December 2025

Signing of the Agreement: Expected in the first half of 2026, following parliamentary ratifications and formal procedures.

Why This Matters Now

This FTA is India’s 18th free trade arrangement, reflecting its strategic push toward diversifying export markets, enhancing global supply chain integration, and attracting sustained foreign investment.