India and New Zealand Finalise FTA, Slash Tariffs on 95% of Kiwi Exports

India and New Zealand have officially concluded a Free Trade Agreement (FTA), significantly reducing tariffs on a wide range of New Zealand exports, as per news reports.  

The pact was finalised within 9 months and comes after a 10-year gap in trade negotiations between the 2 nations. 

Key Details of the India–New Zealand Free Trade Agreement 

On December 22, 2025, Prime Ministers Narendra Modi and Christopher Luxon announced the India–New Zealand FTA designed to boost bilateral trade. The agreement cuts tariffs on approximately 95% of New Zealand’s exports to India, with over 50% of these becoming duty-free from day one of the implementation. 

India is New Zealand’s 7th major FTA partner in recent years, following similar agreements with the United Kingdom, UAE, Oman, and others. Prime Minister Luxon noted that this FTA could raise New Zealand’s exports to India by $1.1 billion to $1.3 billion annually over the next 20 years. 

Trade Scope and Records Between India and New Zealand 

In FY21, India exported goods worth $486.2 million to New Zealand, whereas imports stood at $381.5 million. Projections for FY26 show Indian exports at $343.5 million and imports at $356.9 million.  

Key Indian exports included drug formulations, cotton fabrics, motor vehicles, and petroleum products. New Zealand’s major exports comprised fresh fruit, iron, steel, wood products, coal, and dairy items. 

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Services, Mobility and Investment Commitments 

The FTA also focuses on services and labour mobility. New Zealand has opened 118 services sectors and offered Most Favoured Nation (MFN) status in 139 sub-sectors such as IT, education, tourism, telecom, and construction.  

Indian students and professionals will benefit from extended post-study work visa durations of up to 3 years for STEM graduates and 4 years for doctoral scholars. 

The agreement includes 5,000 temporary work visas and 1,000 working holiday visas each year for Indian citizens. Leaders of both countries expressed expectations of doubling bilateral trade in the next 5 years alongside New Zealand investing $20 billion in India across different sectors in the next 15 years. 

Conclusion 

The India–New Zealand FTA enables significantly improved market access, reduced tariffs on major Kiwi exports, and broader cooperation in services and skilled workforce mobility. It builds on strengthening economic commitments between both countries. 

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