• India and New Zealand have concluded talks on a free trade agreement, granting India tariff-free access to New Zealand’s market, attracting $20 billion in investment over 15 years, and aiming to double bilateral trade to $5 billion within five years. 
• The FTA will be formally signed in the first half of 2026.

India–New Zealand Bilateral Relations

• India and New Zealand established diplomatic relations in 1952 and share enduring ties rooted in Commonwealth membership, common law traditions, and democratic governance. 
• Sporting links—especially cricket, hockey, and mountaineering—and tourism have long fostered goodwill between the two societies.

1. Strategic Vision and Policy Frameworks

• New Zealand has identified India as a priority partner through initiatives such as “Opening Doors to India” (2011) and the NZ Inc. India Strategy. 
• This was further deepened by the “India–NZ 2025: Investing in the Relationship” strategy, envisioning a more enduring strategic partnership across political, economic, and people-centric domains.

2. Trade and Economic Ties

• New Zealand is India’s 11th largest two-way trading partner.
• India-New Zealand total trade in 2023-24 was valued at US$ 1.75 billion.
• Key trade sectors: Education, tourism, dairy, food processing, pharmaceuticals, renewable energy, and critical minerals.
• Indian exports to NZ: Pharmaceuticals, precious metals & gems, textiles, motor vehicles, and non-knitted apparel.
• Indian imports from NZ: Logs, forestry products, wool, edible fruit & nuts.

3. Defence and Maritime Cooperation

          Defence ties are expanding steadily:

• Regular naval visits and port calls by Indian Navy ships.
• High-level naval leadership exchanges.
• Cooperation under Combined Task Force-150, with Indian Navy personnel contributing while NZ leads the task force.
• These engagements support maritime security and Indo-Pacific stability.

4. Education and Knowledge Partnerships

• India is the second-largest source of international students in NZ (≈8,000 students).
• Collaboration through:

1. NZ Centre at IIT Delhi
2. Joint research projects in cancer, robotics, cybersecurity, waste management, and medical technology
3. Education cooperation agreements with GIFT City and IIM Ahmedabad

       5. People-to-People and Cultural Ties

• Indian-origin population in NZ: ~292,000, with Hindi as the fifth most spoken language.
• Vibrant celebration of Indian festivals and strong presence of Indian cultural institutions.
• Deep sporting connections, including shared mountaineering heritage linked to Sir Edmund Hillary.

India–New Zealand Free Trade Agreement: A New Phase in Bilateral Ties

• India and New Zealand have concluded a Free Trade Agreement (FTA), ending negotiations that began in March 2025.
• FTA talks were launched during Luxon’s visit to India, and the deal was finalised in a record nine months, reflecting strong political commitment and a shared goal of deepening bilateral relations.

Key Trade & Investment Highlights

The FTA is expected to double bilateral trade within five years, deepen economic engagement, and strengthen cooperation beyond trade—covering defence, education, sports, innovation, and people-to-people ties.

• Zero-Duty Market Access: New Zealand will grant 100% duty-free access (across 8,284 tariff lines) for Indian exports from the date the agreement enters into force.
• India’s Tariff Liberalization: India will liberalize duties on approximately 70% of its tariff lines, covering about 95% of bilateral trade by value.
• Investment Commitment: New Zealand has committed to facilitating $20 billion in investment into India over the next 15 years, targeting manufacturing, infrastructure, and innovation.
• Trade Growth Target: The agreement aims to double bilateral trade from the current ~$2.4 billion to nearly $5 billion within five years.
• 5,000 temporary employment visas annually for Indian professionals, valid up to three years.
• India gains market access across 118 services sectors and MFN status in 139 sectors, expanding opportunities for Indian professionals.
• Most Favoured Nation (MFN) status is a key WTO principle that requires countries to treat all WTO members equally in trade.
• Coverage includes IT, engineering, healthcare, education, construction, and niche roles like AYUSH practitioners, yoga instructors, chefs, and music teachers—strengthening services trade and workforce mobility

Sensitive Sector Safeguards

• Dairy Protection: India successfully excluded the dairy sector (milk, cream, cheese, etc.) from tariff concessions to protect domestic farmers.
• Agricultural Exclusions: Other sensitive products kept in exclusion include sugar, onions, almonds, and several vegetable products.
• Tariff-Rate Quotas (TRQs): For some agricultural products like apples, kiwifruit, and honey, India will allow managed access through a TRQ system linked to productivity-enhancing "Action Plans".

Conclusion of the Agreement

• The agreement serves as a strategic milestone in India’s engagement with the Indo-Pacific, marking its third major trade deal in 2025 following pacts with the UK and Oman. By finalizing this agreement, both nations have signaled a reset in their economic relationship, moving toward a future-ready partnership focused on high-skill mobility, integrated supply chains, and investment-led growth.
• Next Phase: The agreement is expected to be formally signed in early 2026, with implementation anticipated to begin later that year after parliamentary ratification.