India and New Zealand are expected to sign a long-awaited Free Trade Agreement (FTA) on April 24 at Bharat Mandapam, marking a major step toward strengthening economic ties between the two nations.
According to an official, the agreement is expected to provide tariff-free access for Indian exporters to the New Zealand market and attract nearly $20 billion in investment into India over the next 15 years.
The two countries had earlier announced the conclusion of negotiations for the trade pact on December 22 last year, with the goal of doubling bilateral trade to $5 billion within five years.
Tariff Benefits For Both Countries Under The Agreement
Under the proposed agreement, India will receive zero-duty market access on 100% of its exports to New Zealand, giving Indian businesses a significant boost in accessing the island nation’s markets.
Meanwhile, the deal will eliminate or reduce tariffs on about 95% of New Zealand’s exports to India. These include a wide range of products such as:
- Wool
- Coal
- Wood and forestry products
- Wine
- Avocados
- Blueberries
However, India has withheld duty concessions on several sensitive agricultural products to safeguard domestic farmers and industries.
These protected categories include:
- Dairy products such as milk, cream, whey, yoghurt, and cheese
- Onions
- Sugar
- Spices
- Edible oils
- Rubber
At the same time, New Zealand is expected to receive duty-free access for goods such as sheep meat, wool, coal, and more than 95% of forestry and wood-based products.
Employment Opportunities For Indian Professionals
The agreement also includes provisions aimed at boosting services trade and professional mobility.
Under the services component, New Zealand will introduce a temporary employment entry visa pathway for Indian professionals. The scheme will allow:
- Up to 5,000 visas annually
- Stay duration of up to three years
The visa pathway will benefit professionals across several sectors, including:
- AYUSH practitioners
- Yoga instructors
- Indian chefs
- Music teachers
- Information Technology (IT)
- Engineering
- Healthcare
- Education
- Construction
This move is expected to strengthen workforce mobility and enhance cooperation in services between the two countries.
Growing Trade Ties Between India And New Zealand
Trade between India and New Zealand has been steadily increasing in recent years.
According to available data:
- Bilateral merchandise trade stood at $1.3 billion in 2024–25
- Total trade in goods and services reached about $2.4 billion in 2024
- Services trade alone touched $1.24 billion, led primarily by travel, IT, and business services
The upcoming FTA is expected to accelerate this growth trajectory and deepen economic engagement between the two nations.