Agreement Structure and Market Access
The FTA introduces a layered tariff system rather than a one-size-fits-all approach. New Zealand provides 100% duty-free access to all Indian exports across sectors including textiles, leather, engineering goods and manufacturing products. India opens approximately 70% of its tariff lines, accounting for 95% of trade value, with duty removal occurring in stages. Some goods see immediate duty elimination while others follow phased reductions over 3, 5, 7 or 10 years, with a small category receiving partial tariff cuts. The agreement also includes concessional access for inputs such as wooden logs, coking coal and metal scrap.
Services and Professional Mobility
The agreement establishes a detailed services framework where New Zealand commits market access across approximately 118 sectors, including IT, finance, education, telecom, tourism and professional services. The deal unlocks 5,000 annual work visas for Indian professionals, facilitating increased mobility between the two nations.
Investment and Economic Impact
New Zealand has committed $20 billion in investment to India, with focus areas including agriculture, manufacturing, innovation and technology. The agreement is expected to double bilateral trade between the two countries to $5 billion within five years. As of 2024, bilateral trade stood at approximately $2.4 billion, comprising $1.24 billion in services trade led by IT, travel and business services, and $1.3 billion in merchandise trade.
Negotiation Process and Implementation
The agreement was concluded on December 22, 2025, just nine months after launch through five formal rounds of negotiations and several intersessions, making it one of the fastest FTAs concluded by India with a developed country. Implementation is contingent on New Zealand Parliament's approval and approval by India's Cabinet. This marks India's ninth trade agreement in recent years.
Trade Coverage and Current Trade Patterns
India currently exports petroleum products, pharmaceuticals, aviation fuel, readymade garments, machinery to New Zealand. India imports scrap metals, coal, farm-linked inputs, iron and steel, select dairy products, and wood products from New Zealand. The agreement addresses trade across merchandise and services sectors with detailed tariff roadmaps. 
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