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India-New Zealand FTA finalised: How it boosts bilateral trade & investment

India and New Zealand have finalized a landmark Free Trade Agreement (FTA), announced by PMs Modi and Luxon. This deal reduces tariffs on 95% of NZ exports to India, unlocking market access for businesses to 1.4 billion consumers. It aims to double bilateral trade within five years, fostering economic growth, investment, and strategic cooperation between both nations.

India-New Zealand Free Trade Deal finalised
India-New Zealand Free Trade Deal finalised Credit:Salman Ali/HT via Getty Images
India-New Zealand Free Trade Deal finalised
India-New Zealand Free Trade Deal finalised Credit:Salman Ali/HT via Getty Images
| Updated on: Dec 22, 2025 | 12:41 PM

New Delhi: India and New Zealand have finalised the deals for a Free Trade Agreement. Prime Minister Narendra Modi and New Zealand PM Christopher Luxon on Monday announced the landmark India-New Zealand Free Trade Agreement. Both the leaders held a telephone conversation and jointly announced the trade deal.

The free trade agreement (FTA) with New Zealand reduces or removes tariffs on 95 per cent of our exports to India, Luxon confirmed.

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"I've just spoken with India's Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement," he added.

"The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," the Prime Minister said.

Key Benefits of India-New Zealand Free Trade Agreement

Both PM Modi and his New Zealand counterpart agreed that the FTA would serve as a catalyst for greater trade, investment, innovation and shared opportunities between both the nations. The leaders prased the progress made in the bilateral cooperation including defence, sports, education and people-to-people ties.

The trade discussions kickstarted during PM Luxon’s visit to India in March 2025. With the FTA deal finalised in nine months, the two leaders agreed that the conclusion of the FTA in a record time reflects the shared ambition and political will to further deepen ties between the two countries.

India-New Zealand Economic Ties

“The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors,” a press release stated.

PM Modi and Luxon expressed confidence in increasing the trade between India and New Zealand and aimed to double bilateral trade over the next five years as well as an investment of USD 20 billion in India from New Zealand over the next 15 years.

India-New Zealand trade deal Highlights

  • Zero Duty market access on 100 per cent of India’s exports.
  • India has offered tariff liberalisation in 70 per cent lines covering 95 per cent of New Zealand India Bilateral trade.
  • Dedicated quota of Temporary Employment Entry visa for 5,000 professionals and 1,000 Work and Holiday Visas.
  • New Zealand assured facilitation investments of USD 20 billion into India over the next 15 years.
  • Agricultural Productivity Partnerships will be established through Centres of Excellence by New Zealand for Apples, Kiwifruit, and Honey to increase productivity.
  • The FTA deal insures duty free inputs for India's Manufacturing Sector.
  • Both the countries agreed to cooperate in forestry, horticulture AYUSH, culture, fisheries, traditional knowledge systems and audio visual tourism.
  • India-New Zealand Bilateral merchandise trade stood at USD 1.3 billion in 2024–25
  • Total trade in goods and services at approximately USD 2.4 billion in 2024
  • Services trade between the two nations alone reached USD 1.24 billion.
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