India–New Zealand
India and New Zealand concluded negotiations on a comprehensive Free Trade Agreement (FTA) after just nine months. The agreement, to be signed in H1 2026, aims to double bilateral trade to USD 5 billion within five years.
Core Highlights
Tariffs:
• New Zealand to eliminate duties on 100% of Indian exports.
• India to offer concessions on ~70% product lines, covering 95% of bilateral trade value.
Investment:
• USD 20 billion FDI over 15 years from New Zealand into manufacturing, infrastructure, and innovation.
Mobility:
• 5,000 annual work visas for skilled Indian professionals (IT, engineering, healthcare) with up to 3-year stay.
Education:
• Post-study work visas extended to 3 years (STEM bachelor’s/master’s) and 4 years (PhD).
Traditional Medicine:
• First-ever Health & Traditional Medicine annex, enabling trade in AYUSH (Ayurveda, Yoga, etc.).
Sensitive Sectors & Safeguards
• Dairy fully excluded to protect Indian farmers.
• No tariff cuts on sugar, edible oils, onions, wheat, rice.
• Limited access for NZ apples, kiwifruit, honey via Tariff Rate Quotas (TRQs).
Trade Snapshot (FY 2024–25)
• Merchandise trade: USD 1.3 billion (≈49% annual growth).
• India exports exports: Pharmaceuticals, gems & jewellery, textiles, machinery.
• NZ exports: Wool, forestry products, apples, kiwifruit, industrial goods.
