India-New Zealand FTA Signed: What the ‘Once-in-a-Generation’ Deal Offers

India and New Zealand finally signed their long-awaited free trade agreement (FTA) today, which Prime Minister Christopher Luxon has called a “once-in-a-generation” deal. Commerce and Industry Minister Piyush Goyal and his New Zealand counterpart, Todd McClay, conducted the signing ceremony.

The FTA was launched on March 16, 2025, and concluded on December 22, 2025. The pact will require domestic ratification in both countries before formally entering into force, which is expected later in 2026.

"The fact that we are making businesses easier to set up, easier to work in India working towards reducing the compliance burden, ensuring simplicity in operations, ensuring a business climate that is trusting, that encourages investment, and also making sure that as a nation, we provide an environment that is business friendly, that is very inviting, and that it help you both grow and enjoy good profits in India," Goyal said.

What's In the Deal

While India will get zero-duty market access on 100% of its exports, the agreement aims to eliminate or reduce tariffs on 95% of New Zealand's exports to India, including items ranging from wool, coal, wood, wine, to avocados and blueberries.

However, New Delhi has made no duty concessions on imports of dairy products like milk, cream, whey, yoghurt, and cheese; onions, sugar, spices, edible oils, and rubber to protect farmers and the domestic industry.

Regarding the services sector, New Zealand will give a temporary employment entry visa pathway for Indian professionals in skilled occupations with a quota of 5,000 visas annually and a stay of up to three years.

India’s bilateral trade with New Zealand stood at $2.1bn in FY2025. Both sides now aim to more than double this figure over the next five years.

A statement by the New Zealand government last year claimed to be the first country to secure preferential access for apples in any Indian trade pact.