Calling it a “historic milestone” in India–New Zealand relations, External Affairs Minister Subrahmanyam Jaishankar said the newly concluded Free Trade Agreement (FTA) between the two countries would significantly deepen economic cooperation, strengthen strategic trust, and create fresh opportunities for businesses, professionals, and young people. The agreement, finalised on April 27 after years of negotiations, is being seen as a major breakthrough in bilateral trade relations between India and New Zealand. Under the pact, all Indian exports to New Zealand will receive duty-free access, while tariffs on 95 per cent of New Zealand goods entering the Indian market will either be removed or sharply reduced.
The agreement was signed in the presence of Union Commerce Minister Piyush Goyal and New Zealand Commerce Minister Todd McClay. Reacting to the development, Jaishankar said the agreement would pave the way for stronger economic engagement and expand opportunities across several sectors. In a message posted on social media platform X, he described the FTA as a landmark step that would encourage investment flows, improve market access, and support innovation-driven growth in both countries.
“The signing of India-New Zealand Free Trade Agreement today is a landmark for our ties. The FTA will forge stronger economic partnerships, boost investments and enhance market access for our exporters. It will also unlock new opportunities for innovators, entrepreneurs, farmers, MSMEs, women and youth,” Jaishankar said. According to details shared by the minister, the agreement includes a major investment commitment from New Zealand, which is expected to invest nearly $20 billion in India over the next 15 years. Officials believe the investment inflow could support infrastructure development, technology partnerships, and expansion in manufacturing and service sectors.
The deal is also expected to provide a major boost to Indian exports, especially in sectors such as textiles, pharmaceuticals, engineering goods, and small-scale manufacturing. Industry experts say duty-free access to the New Zealand market could improve the competitiveness of Indian products and help exporters expand their presence in the Pacific region.
Another important feature of the agreement is the mobility provision for skilled workers. The pact provides for 5,000 annual visas for skilled professionals, opening opportunities for Indians working in sectors such as information technology, healthcare, engineering, and related services. The move is expected to strengthen people-to-people ties while helping businesses address skilled workforce demands.
The agreement is also likely to benefit Indian students studying in New Zealand. At present, around 8,000 Indian students are enrolled in educational institutions there. Officials said the FTA would ease post-study work visa norms, allowing graduates greater flexibility to gain professional experience after completing their studies.
Jaishankar said the agreement was concluded in record time under the leadership of Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon. He added that bilateral economic ties between the two countries are currently at their strongest phase.