India–New Zealand Conclude Comprehensive Free Trade Agreement

Why in News:
India and New Zealand have concluded a comprehensive, balanced and forward-looking Free Trade Agreement (FTA), marking one of India’s fastest-concluded FTAs. Negotiations were formally launched on 16 March 2025.

Key Features of the India–New Zealand FTA

Market Access & Trade

• New Zealand eliminates tariffs on 100% of its tariff lines, granting duty-free access for all Indian exports.
• This significantly enhances the competitiveness of India’s labour-intensive sectors.
• The agreement is expected to deepen goods and services trade between the two countries.

Services, Mobility & People-to-People Ties

• Improved entry and stay provisions for:
  • Indian professionals
  • Students and youth (including work opportunities during studies)
• Introduction of a Temporary Employment Entry Visa pathway:
  • Quota: 5,000 visas at any given time
  • Duration: Up to 3 years
  • Coverage:
    • AYUSH practitioners
    • Yoga instructors
    • Indian chefs
    • Music teachers
    • High-demand sectors such as IT, engineering, healthcare, education and construction
• This strengthens workforce mobility and services trade.

Investment Commitments

• New Zealand has committed to facilitate investments worth USD 20 billion in India over the next 15 years.

India–New Zealand Economic Relations: Snapshot

• Bilateral merchandise trade: USD 1.3 billion (2024–25)
• Total trade in goods and services: ~USD 2.4 billion (2024)
• Services trade: USD 1.24 billion, led by:
  • Travel
  • IT services
  • Business services

Broader Context

• This is the third FTA concluded by India in 2025.
• Earlier FTAs in 2025:
  • United Kingdom – May 2025
  • Oman – December 2025