Commerce minister Goyal to meet exporters, industry associations on April 27

India is all set to sign a Free Trade Agreement (FTA) with New Zealand tomorrow at Bharat Mandapam in New Delhi, over 13 months after negotiations were commenced on 16th March 2025 during a meeting between India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. With the signing of the FTA with New Zealand, India will now have trade pacts with all members of the RCEP (Regional Comprehensive Economic Partnership) except China.

The FTA will offer zero duty market access on 100% of India’s exports to New Zealand, while India has offered tariff liberalisation in 70% lines covering 95% of bilateral trade. Dairy, coffee, milk, cream, cheese, yoghurts, whey, caseins, onions, sugar, spices, edible oils, and rubber have been excluded from the FTA due to sensitivities on India’s side, while duty-free access has been given to inputs for India’s Manufacturing Sector like Wooden logs, coking coal, metal scrap and waste.

In December 2025, both the countries had announced conclusion of a trade agreement which opens skilled employment pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years. This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction to strengthen workforce mobility and services trade between India and New Zealand.

India’s Commerce Ministry said that the “best-ever market access and services offer” by New Zealand covers 118 services sectors and will boost student mobility through post-study work visas and professional pathways in New Zealand with no numerical caps. The mobility will provide post-study work rights of up to 3 years for STEM Bachelor’s and Master’s graduates and up to 4 years for doctoral scholars, with a dedicated quota of Temporary Employment Entry visa for 5,000 professionals and

1,000 Work and Holiday Visas. While Agricultural Productivity Partnerships through Centres of Excellence for Apples, Kiwifruit, and Honey are expected to boost productivity and farmer incomes, market access curbs for apples, kiwifruit and

honey are linked to quotas and minimum import prices with safeguards for domestic producers.

Under the FTA, New Zealand has committed to facilitate investments of $20 billion into

India over the next fifteen years to support manufacturing, infrastructure, services, innovation, and employment. Indian enterprises are expected to benefit from their presence in New Zealand and access to the wider Pacific Island markets. India’s bilateral merchandise trade with New Zealand stood at $1.3 billion in FY 2024-25, registering a growth of nearly 49% over the previous year. The FTA is expected to further boost trade flows, promote investment linkages, strengthen supply chain resilience, and create a predictable framework for businesses in both countries.

First Published: 

Apr 26, 2026 10:56 AM

IST