India, New Zealand Set to Sign ‘Once-in-a-Generation’ FTA — Here’s What to Expect

In a significant boost to India’s bilateral relations, New Delhi is set to sign a free trade agreement (FTA) with New Zealand on Monday. The pact will include a commitment by Wellington to invest $20 billion in India over the next 15 years, boost exports, and accelerate growth in India’s highly skilled sectors.

Union Commerce Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay met in Agra on Sunday to hold discussions ahead of the signing.

Ahead of the agreement, New Zealand Prime Minister Christopher Luxon wrote on X, describing the pact as a “once-in-a-generation agreement” that would give New Zealand exporters unprecedented access to 1.4 billion people.

“It means more jobs on farms and orchards, it means more money coming into local communities, and it means more opportunities for your family to get ahead,” Luxon wrote, highlighting the socio-economic significance of the pact for New Zealanders.

The India–New Zealand agreement was concluded in December 2025 after months of negotiations that began in March. Once signed, the agreement will take a few months to come into effect, as it requires ratification by both countries.

Significant Boost to Indian Exports

With duty-free access to the New Zealand market, the India–New Zealand FTA can be seen as an agreement where India has maximised gains for its export sector while maintaining protection for sensitive sectors such as dairy and agriculture. The FTA is expected to boost labour-intensive sectors such as handlooms, textiles, leather, and handicrafts.

“In a few months, it will be a means of increasing trade between India and New Zealand,” Piyush Goyal said.

$20 Billion Investment

The agreement also includes a $20 billion investment commitment, which is likely to support India’s infrastructure, manufacturing, and technology sectors. Bilateral merchandise trade stood at nearly $1.3 billion in 2024–25, with services trade—particularly IT and travel—expected to grow steadily.

According to reports, the biggest beneficiaries of the agreement are likely to be India’s employment-intensive sectors, especially micro, small, and medium enterprises (MSMEs).

Social Mobility

Beyond trade in goods, the agreement places strong emphasis on mobility. Indian students in New Zealand will be allowed to work up to 20 hours a week during their studies, with post-study work visa provisions extended up to four years depending on qualifications.

A quota of 5,000 visas will cover sectors such as IT, healthcare, and engineering, as well as professions like Indian chefs and yoga instructors. Separately, a working holiday visa scheme will allow nearly 1,000 young Indians each year to live and work in New Zealand for up to a year.

“Today, this Free Trade Agreement is about building trade around people and launching opportunities—for our farmers, entrepreneurs, students, women, and innovators. By boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated exports and gives our youth choices to learn, work, and grow on a global stage,” Goyal said.