India–New Zealand Free Trade Agreement Signed

Why in the News?
India and New Zealand signed the India–New Zealand Free Trade Agreement on 23 April 2026 at Bharat Mandapam, Delhi marking a major step in bilateral economic cooperation.

About the Agreement
The FTA was signed by Piyush Goyal and Todd McClay. It is part of India’s expanding trade network and is among several recent agreements with developed economies. The agreement aims to enhance trade in goods, services, and investment while promoting economic integration.

Key Features
The agreement provides duty-free access for 100% of India’s exports to New Zealand, covering all tariff lines, which is expected to boost MSMEs and labour-intensive sectors. India has offered tariff liberalisation on about 70% of tariff lines (covering 95% of trade value), while keeping nearly 30% of sensitive sectors—such as dairy, animal products, and certain agricultural goods—outside the agreement. Selected New Zealand agricultural products like apples, kiwifruit, and mānuka honey will enter India through a Tariff Rate Quota system with safeguards.

Services and Mobility
India has secured market access in around 118 services sectors in New Zealand, along with Most-Favoured Nation commitments in 139 sub-sectors. A key innovation is the Temporary Employment Entry (TEE) visa pathway, allowing up to 5,000 Indian professionals to work in New Zealand for up to three years. The agreement also introduces a dedicated framework for student mobility and post-study work opportunities.

Investment and Economic Impact
The FTA includes a commitment to facilitate significant bilateral investments, including a target of around USD 20 billion. It is expected to enhance competitiveness, create employment, strengthen supply chains, and deepen economic ties between the two countries.

Concerns / Challenges
Despite its benefits, concerns remain regarding the protection of sensitive sectors such as dairy and agriculture. Ensuring that safeguards like tariff rate quotas are effectively implemented will be crucial. Additionally, the success of the agreement will depend on how well MSMEs adapt to increased competition and leverage new market opportunities.

Source: PIB