Context:

• India and New Zealand signed a historic Free Trade Agreement (FTA) on 27 April 2026 in New Delhi.

Key Points:

• Announcement of FTA: 16 March 2025
• Record: Completed in just 9 months, the fastest FTA concluded by India
• New Zealand is India’s second-largest trading partner in Oceania
• With a per capita income of USD 49,380, New Zealand is a high-income economy
• In 2024, New Zealand’s imports were USD 47 billion and exports USD 42 billion
• New Zealand invests ~8% of its GDP abroad annually; total overseas investment reached USD 422.6 billion (March 2025)
• Around 300,000 people of Indian origin live in New Zealand (~5% of population)

Trade Statistics:

• Merchandise Trade: Increased from USD 873 million (2023–24) to USD 1.3 billion (2024–25), a growth of 49%
• Exports to New Zealand: Rose to USD 711 million (2024–25), up by 32%
• Services Trade: India’s service exports grew by 13% to USD 634 million (2024) (travel, IT, professional services)
• Bilateral Trade: Increased from USD 855 million (2015–16) to USD 1298 million (2024–25); exports grew by 130%, imports by 7.21%

Key Features of the FTA:

• 100% tariff elimination on Indian exports to New Zealand
• Commitment of USD 20 billion investment over 15 years
• India offered market access on 70.03% tariff lines; 29.97% excluded (covering 95% of NZ trade)
• Excluded items: dairy products, most animal products, select crops (onion, pulses, maize, almonds), sugar, oils, arms & ammunition, gems & jewellery, copper, aluminium, etc.
• 30% tariff lines: Immediate duty elimination (wood, wool, sheep meat, raw hides)
• 35.6% tariff lines: Phased elimination over 3, 5, 7, 10 years (petroleum oils, vegetable oils, machinery, etc.)
• 4.37% products: Tariff reduction (alcohol, medicines, polymers, metals)
• 0.06% products under tariff-rate quota (Manuka honey, apples, kiwifruit, albumin)

Benefits to India:

• Duty-free access boosts MSMEs and employment
• Enhanced competitiveness in textiles, leather, gems & jewellery, engineering goods, processed food
• Duty-free inputs (wood logs, coking coal, scrap metals) reduce production costs
• Strengthened integration into global value chains
• Improved regulatory certainty and reduced trade barriers
• Structured MSME support: export readiness, market access, startup and women/youth-led enterprises

Agriculture & Technology Cooperation:

• Joint action plans to improve productivity and quality of kiwi, apple, and honey production

Services Sector:

• Best-ever offer from New Zealand: commitments in 118 sectors; MFN status in 139 sectors
• First-time facilitation of Ayurveda, Yoga, and traditional medicine services

Mobility & Education:

• Students can work 20 hours/week; extended post-study work visas (STEM: 3 years, PG: 3 years, PhD: 4 years)
• Temporary Employment Entry (TEE): 5,000 visas for skilled Indians (up to 3 years)
• Working Holiday Visa: 1,000 युवाओं को 12 महीने का मल्टी-एंट्री वीजा

India’s Sector-wise Exports:

Agriculture:

• Global exports: USD 51.8 billion (2024–25)
• Exports to New Zealand: USD 108.21 million

Marine:

• Global exports: USD 7.0 billion (2025)
• Exports to New Zealand: USD 1589 million

Textiles & Apparel:

• Global exports: USD 36.9 billion
• Exports to New Zealand: USD 103.14 million

Engineering:

• Global exports: USD 153.4 billion
• Exports to New Zealand: USD 136.34 million

Leather:

• Global exports: USD 3.08 billion
• Exports to New Zealand: USD 6.23 million

Footwear:

• Global exports: USD 2.5 billion
• Exports to New Zealand: USD 2.28 million

Sports Goods:

• Global exports: USD 571 million
• Exports to New Zealand: USD 4.2 million

Pharmaceuticals:

• Global exports: USD 24.5 billion
• Exports to New Zealand: USD 57.51 million

Plastics:

• Global exports: USD 8.16 billion
• Exports to New Zealand: USD 13.48 million

Gems & Jewellery:

• Global exports: USD 29.96 billion
• Exports to New Zealand: USD 16.91 million

Electronics & Electrical:

• Global exports: USD 77.53 billion
• Exports to New Zealand: USD 68.26 million

Chemicals:

• Global exports: USD 64.04 billion
• Exports to New Zealand: USD 95.79 million

State-wise Benefits under FTA: