India and New Zealand Set to Sign Landmark Free Trade Agreement

Significant Trade Deal on the Horizon

New Delhi: A Free Trade Agreement (FTA) between India and New Zealand is anticipated to be finalized on April 24, providing Indian exporters with tariff-free access to the New Zealand market. This agreement is projected to attract an investment of USD 20 billion over the next 15 years, according to official sources.

The conclusion of negotiations for this trade deal was announced on December 22 of the previous year, with the goal of increasing bilateral trade to USD 5 billion within the next five years.

The signing of the agreement is expected to take place at Bharat Mandapam on April 24.

India will benefit from zero-duty access for all its exports, while New Zealand will see tariffs eliminated or reduced on 95% of its exports to India, which includes products like wool, coal, wood, wine, avocados, and blueberries.

However, India has opted not to make any duty concessions on dairy imports such as milk, cream, whey, yogurt, and cheese, as well as onions, sugar, spices, edible oils, and rubber, in order to safeguard its farmers and domestic industries.

In return, New Zealand will gain duty-free access for goods including sheep meat, wool, coal, and over 95% of forestry and wood products.

Regarding the services sector, New Zealand will introduce a temporary employment visa pathway for Indian professionals in skilled jobs, allowing for 5,000 visas annually with a maximum stay of three years.

This visa pathway will cater to various Indian professions, including AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand fields such as IT, engineering, healthcare, education, and construction, thereby enhancing workforce mobility and services trade.

In the fiscal year 2024-25, bilateral merchandise trade was valued at USD 1.3 billion. The total trade in goods and services reached approximately USD 2.4 billion in 2024, with services trade alone accounting for USD 1.24 billion, primarily driven by travel, IT, and business services.