The India-New Zealand Free Trade Agreement (IN-NZ FTA), signed on April 27, 2026, represents a “new-generation” trade deal aimed at strategic economic integration in the Indo-Pacific. It is India’s 9th agreement with a developed partner in recent years and was concluded in a record nine months.

I. Key Trade Figures & Investment

• Bilateral Trade: Reached USD 2.4 billion (goods & services) in 2024.
• Investment Commitment: New Zealand has committed USD 20 billion to India for sectors like manufacturing, infrastructure, and startups.
• Oceania Context: New Zealand is India’s second-largest trading partner in the Oceania region.

II. Trade in Goods (Market Access)

• India’s Gains (100% Duty-Free): India secured zero-duty access for 100% of its tariff lines. This benefits labor-intensive sectors such as textiles, apparel, leather, footwear, gems & jewelry, and engineering goods.
• India’s Offer (70% Liberalization): India offered tariff elimination/reduction on 70.03% of tariff lines (covering 95% of bilateral trade value).
• Sensitive Sectors (Exclusions): Approximately 30% of lines are excluded to protect domestic industry. Key exclusions include Dairy (milk, cheese, yogurt), certain Agri-products (onions, sugar, pulses), and Gems & Jewelry.
• Phased Liberalization: While some duties are eliminated immediately, others (petroleum, machinery) will see phased removal over 3–10 years.

III. Services, Talent & Education

• Service Sectors: Covers 118 sectors, including IT, professional services, and telecommunications.
• Mobility (Work Visas): * A dedicated quota of 5,000 Temporary Employment Entry visas for Indian professionals.
  • Post-study work rights: Up to 3 years for STEM graduates and 4 years for Doctoral scholars.
• AYUSH & Traditional Knowledge: A landmark first where New Zealand recognizes/collaborates on Ayurveda, Yoga, and Indian Geographical Indications (GIs).

IV. Agricultural Productivity & Innovation

• Centres of Excellence: Focus on high-value items like apples, kiwifruit, and Mānuka honey to improve Indian farmer productivity and knowledge transfer.
• Organic Products: Mutual Recognition Agreement (MRA) for organic exports (e.g., Basmati rice, flax seeds).
• Tariff Rate Quotas (TRQ): Limited access for specific NZ products like Mānuka honey and kiwi fruit to balance trade with domestic protection.

V. Regulatory & Safeguard Mechanisms

• Rules of Origin (RoO): Robust Product Specific Rules (PSRs) and a verification mechanism to prevent trade circumvention (e.g., stopping non-NZ products from using the FTA benefits).
• Bilateral Safeguard Mechanism: Allows India to temporarily suspend duty reductions if an import surge threatens domestic industry injury.
• Customs Facilitation: Commitment to clear standard cargo within 48 hours and perishables within 24 hours.