- India and New Zealand signed a landmark FTA on April 27, 2026, eliminating duties on 100% of Indian exports.
- The agreement secures a $20 billion investment commitment from New Zealand into India over the next 15 years.
- A new visa pathway allows 5,000 Indian skilled professionals to work in New Zealand for up to three years.
(INDIA, NEW ZEALAND) — India and New Zealand signed a comprehensive Free Trade Agreement on April 27, 2026, giving Indian exporters 100% duty-free access to the New Zealand market and securing a New Zealand commitment to facilitate $20 Bn investment into India over the next 15 years.
Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay signed the pact in New Delhi. Negotiations had concluded in December 2025, capping what the two sides described as one of India’s fastest trade negotiations at nine months.
The agreement grants duty-free access for all Indian exports to New Zealand, covering 8,284 export items across all tariff lines. That covers labour-intensive sectors including textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.
Indian wine and spirits also receive duty-free access under the deal. New Zealand wines will enter India at concessional rates, with tariffs reduced gradually over 10 years.
The import side of the agreement gives India duty-free access to raw materials including wooden logs, coking coal, and metal scrap. The stated aim is to reduce manufacturing costs and improve the global competitiveness of Indian industry.
Services form another large part of the pact. India secured market access commitments in information technology, IT-enabled services, professional services, education, financial services, tourism, and construction.
Mobility provisions also appear in the agreement. A Temporary Employment Entry Visa pathway will allow up to 5,000 Indian professionals in skilled occupations to work in New Zealand for up to three years at any given time.
The investment commitment stands out alongside the tariff concessions. New Zealand committed to facilitate $20 billion in investments into India over the next 15 years, with the money directed toward agriculture, manufacturing, infrastructure, startups, and emerging technologies.
The pact includes a rebalancing clause tied to those investment goals. It is intended to ensure accountability in delivering the promised inflows.
The agreement spans 20 chapters covering trade in goods, services, investment, dispute settlement, and legal provisions. Its structure places tariff cuts, market access, investment commitments, and enforcement provisions in a single framework rather than separate arrangements.
India opened 70% of its tariff lines to New Zealand under the deal. Within that, 30% of tariff lines receive immediate duty elimination on selected products including wood, wool, sheep meat, and leather-raw hides.
Another 35.60% of tariff lines will see duties eliminated in stages over 3, 5, 7, and 10 years. That phased schedule gives the agreement a staggered tariff structure rather than a single deadline for all products.
The trade package arrives from a low base in overall bilateral commerce. Current bilateral trade between India and New Zealand stood at $2.4 billion in 2024.
That makes the market-opening language central to the pact. India obtained 100% duty-free access for every export line it ships to New Zealand, while New Zealand secured access across most Indian tariff lines, though with a mix of immediate and phased reductions.
The sector mix also shows where both governments expect movement. On the Indian export side, the emphasis falls on labour-intensive manufacturing and processed goods, while the import provisions target industrial inputs and raw materials used by domestic producers.
The services commitments add another layer by covering high-value segments where Indian companies already compete abroad, including IT and IT-enabled services. Education, financial services, tourism, construction, and professional services also form part of the market access package.
The visa pathway gives that services agenda a practical route into the labor market. Up to 5,000 Indian professionals in skilled occupations will be able to work in New Zealand for as long as three years at any one time under the Temporary Employment Entry Visa arrangement.
Investment language in trade agreements often draws close attention from businesses because promised capital can take years to materialize. Here, the New Zealand side committed to facilitate $20 billion over 15 years, and the rebalancing clause places that pledge inside the agreement itself.
Indian manufacturers also stand to benefit from cheaper access to wooden logs, coking coal, and metal scrap. Those are basic industrial inputs, and the deal links their duty-free entry to lower production costs and stronger export competitiveness.
New Zealand exporters, meanwhile, gain immediate tariff elimination on some goods and staged cuts on others. Products named for immediate duty elimination include wood, wool, sheep meat, and leather-raw hides.
The wine terms show the asymmetry and balance built into the pact. Indian wine and spirits receive duty-free access into New Zealand, while New Zealand wines enter India at concessional rates that will fall gradually across a 10-year period.
The pace of the talks also gives the agreement political weight. Negotiations concluded in December 2025, and the signing followed on April 27, 2026, completing the process in nine months.
By the time Goyal and McClay signed in New Delhi, the two sides had assembled a trade package that combines tariff elimination, services access, worker mobility, and long-term investment commitments in a single Free Trade Agreement. With bilateral trade at $2.4 billion in 2024, the deal sets out an expansion plan built on 100% duty-free access, access to industrial inputs, and a promised $20 Bn investment pipeline into India.
