India and New Zealand to Sign Long-Pending Free Trade Agreement

India and New Zealand are set to sign their long-pending Free Trade Agreement (FTA) on Monday at Bharat Mandapam, in the presence of Union commerce and industry minister Piyush Goyal and New Zealand’s minister for trade and investment Todd McClay. The agreement, finalised in December 2025 after negotiations that began in March the same year, is aimed at boosting trade ties and expanding economic engagement between the two countries. The agreement is expected to come into force in the coming months, with Goyal noting that it would serve as a catalyst for expanding trade ties.

"In a few months, it will be a means of increasing trade between India and New Zealand," Goyal said. Speaking on the relationship, McClay said that ties between the two countries are at their strongest. "It's very strong. In fact, it's probably the strongest relationship that I have ever known. We, as a government of New Zealand, have said that we want to make our relationship with India and its government a strategic priority...I think we will see direct flights between India and New Zealand. Many more people can come and visit for tourism. .. we're about to sign a free trade agreement."

Duty-free access and trade expansion: The agreement is expected to provide duty-free access for Indian exports to New Zealand, opening up significant opportunities for domestic industries. "Goods exported from India to New Zealand will go without any tax, creating significant opportunities, including for Agra's leather industry and other sectors," Piyush Goyal said. Approximately 70% of goods from India to New Zealand are expected to face no import duty.

Boost for MSMEs and traditional sectors: The deal is likely to benefit several labour-intensive and MSME-driven sectors, particularly in export-oriented clusters such as Agra, known for its leather and footwear industry. "We will get new opportunities for our Agra leather business and Uttar Pradesh handloom and handicrafts... to our one district one product... to our carpenters who make the goods to the handcarvers and many more opportunities," Goyal said.

Services, visas and workforce mobility: The agreement includes provisions to facilitate services trade, including a temporary employment visa pathway for Indian professionals. This will allow up to 5,000 visas annually, with a stay of up to three years, covering sectors such as IT, engineering, healthcare, education and construction. It also includes professionals such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers.

Regulatory easing and sectoral cooperation: The FTA is expected to streamline regulatory processes and reduce non-tariff barriers. It includes faster access for Indian pharmaceuticals and medical devices by recognising international inspection standards. In agriculture, New Zealand will work with India on an Agri-Technology Action Plan focused on kiwifruit, apples and honey.

Investment and trade: The pact aims to double bilateral trade to $5 billion within five years. New Zealand has committed to investing $20 billion in India over the next 15 years across sectors such as manufacturing, infrastructure, services and innovation.

What New Zealand gains: New Zealand will receive tariff reductions or elimination on 95% of its exports to India, including wool, coal, wood, wine, avocados and blueberries. India has excluded sensitive sectors, including dairy products, onions, sugar, spices, edible oils and rubber, to protect domestic farmers.

Goyal and McClay visited the Taj Mahal ahead of the signing. Goyal held discussions with local industry representatives and noted that plans are being explored to establish a new industrial park near Agra.