New Delhi, Dec 22 (PTI) India and New Zealand on Monday announced the successful conclusion of negotiations for a free trade agreement (FTA), under which Indian goods from sectors such as textiles, footwear, engineering, and marine products will gain duty-free access in New Zealand. India has not offered duty concessions in the dairy sector, a key demand from New Zealand.
The pact, expected to be signed within the next three months and implemented next year, also includes New Zealand’s commitment to invest USD 20 billion into India over the next 15 years. “Elimination of tariffs on 100 per cent of its tariff lines provides duty-free access for all Indian exports,” the Commerce Ministry said, noting that the agreement will enhance the competitiveness of labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles.
India secured commitments in high-value sectors such as IT and IT-enabled services, professional services, education, financial services, tourism, construction, and other business services, opening substantial opportunities for Indian service providers and skilled employment.
The FTA also provides improved entry and stay provisions for Indian professionals, students, and youth, including post-study work pathways, dedicated visa arrangements, and a Working Holiday visa framework. A new Temporary Employment Entry Visa pathway has been introduced for Indian professionals in skilled occupations, with a quota of 5,000 visas at any time and a stay of up to three years. Professions covered include AYUSH practitioners, yoga instructors, Indian chefs, music teachers, and sectors like IT, engineering, healthcare, education, and construction.
Agricultural cooperation is another key focus, with Agri-Technology Action Plans for kiwifruit, apples, and honey to enhance productivity, technology, research collaboration, quality, and value-chain development. The agreement also envisages Centres of Excellence, improved planting material, capacity building for growers, technical support for orchard management, post-harvest practices, supply chain efficiency, and food safety improvements.
Bilateral merchandise trade reached USD 1.3 billion in 2024-25, while total trade in goods and services stood at around USD 2.4 billion, with services trade alone at USD 1.24 billion, driven by travel, IT, and business services. “The FTA provides a stable and predictable framework to unlock the full potential of this relationship,” the Commerce Ministry said.
Negotiations for the pact began in May. Commerce Secretary Rajesh Agrawal noted that while only five formal rounds were held, both sides maintained continuous engagement to finalize the agreement.
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