India and New Zealand are set to formalize a Free Trade Agreement (FTA) on April 24 in New Delhi. The pact is expected to grant Indian goods tariff-free entry into the New Zealand market and could draw investments of up to $20 billion over the next 15 years.
The two countries had earlier declared the completion of negotiations for the deal in December last year.
Under the agreement, India is expected to gain zero-duty access for all its exports to New Zealand. In exchange, India will reduce or eliminate tariffs on roughly 95% of New Zealand’s exports, including products such as wool, coal, wood, wine, avocados, and blueberries.
However, India has withheld duty concessions on certain sensitive imports—such as dairy items like milk, cream, whey, yogurt, and cheese, along with onions, sugar, spices, edible oils, and rubber—to safeguard domestic industries.
New Zealand will also receive duty-free access to a range of products, including sheep meat, wool, coal, and most forestry and timber goods.
In the services sector, New Zealand has agreed to introduce a temporary visa program for Indian professionals in skilled categories. This initiative will permit up to 5,000 Indians annually to work in New Zealand for as long as three years.
The arrangement is expected to enhance the mobility of skilled workers and boost services trade between the two countries.
Trade between India and New Zealand remains limited. In 2024–25, merchandise trade totaled $1.3 billion, while overall trade in goods and services reached about $2.4 billion in 2024. Of this, services trade contributed $1.24 billion, driven largely by travel, IT, and business-related services.
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