India and New Zealand FTA: Key Provisions, Benefits and Areas of Cooperation

Explore the proposed India–New Zealand Free Trade Agreement—its key provisions, sectors impacted, and implications for trade, investment, and economic ties between India and New Zealand.

Table of Contents

Context: India and New Zealand are set to sign a landmark FTA marking one of India’s fastest trade negotiations and reflecting growing economic and strategic engagement.

India and New Zealand FTA

Benefits of India and New Zealand FTA

Area	Key Benefits for India
Market Access (Goods)	Zero-duty access on 100% of New Zealand tariff lines (8,284) from entry into force; elimination of ~10% tariffs on ~450 Indian export lines;
Protection of Sensitive Sectors	India has excluded key sectors to protect domestic interests (e.g. dairy products, onions and pulses, sugar, edible oils, metals like copper and aluminium).
Services Trade	New Zealand’s best-ever offer: commitments in 118 services sectors; MFN treatment in 139 sectors
Health & AYUSH	First-ever Health & Traditional Medicine Annex; global promotion of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, Sowa-Rigpa, Homoeopathy); boost to medical value travel and wellness services
Education & Student Mobility	Students allowed 20 hrs/week work during study; protected against future policy changes; extended post-study work visas (STEM Bachelor: 3 yrs; Master’s: up to 3 yrs; Doctorate: up to 4 yrs)
Professional Mobility	5,000 skilled visas (up to 3 years) for Indians in AYUSH, Yoga, Indian cuisine, music, IT, engineering, healthcare, education, and construction
Working Holiday Scheme	1,000 Indian youth annually eligible for multiple-entry stays up to 12 months
Investment	USD 20 billion FDI commitment from New Zealand over 15 years
Regulatory Facilitation	Faster approvals for pharmaceuticals & medical devices; recognition of inspections from US, EU, UK, Canada regulators
Intellectual Property	Binding commitment to amend laws within 18 months for EU-level GI protection for Indian products
Customs & Trade Facilitation	Advance rulings, e-documentation, clearance within 48 hours ( 24 hours for perishables )
Future-Proofing Clause:	Includes provisions ensuring New Zealand gets equal benefits if India offers better terms to other countries in future (e.g. in services or the wine sector)

Overview of the India-New Zealand Relations: Areas of Cooperation

Historical Relation

Early Indian Migration: Indians began arriving in New Zealand in the late 18th century on British East India Company ships.
- Early migrants were primarily from Gujarat and later from Punjab.
- Formation of the Auckland Indian Association in 1920 (centenary celebrated in 2020).
Diplomatic Relations: Both countries became independent in 1947.
- India established diplomatic representation in 1950 with a Trade Commission, later upgraded to a High Commission.
Shared Similarities:
- Commonwealth membership.
- Common law practices.
- Democratic governance focused on diverse communities.

Political, Defence, and Security Cooperation

Parliamentary Engagement: Regular parliamentary delegation visits.
Defence Collaboration: Increased participation in military exercises and staff college exchanges.
- Regular port calls by naval ships (e.g., Tarini at Lyttelton and HMNZS Te Kaha at Mumbai).
- Signing of the India-New Zealand MoU for Defence Cooperation to establish regular bilateral defence engagement.
Maritime Security: NZ sees India as a safe bet to counter China’s assertive rise in the Indo-Pacific region.
- India’s participation in the Combined Maritime Forces and cooperation under Command Task Force 150.

Combined Task Force (CTF)

Combined Task Force (CTF) 150 is a multinational naval task force working under Combined Maritime Forces and is based in Bahrain. Indian Navy has committed a contribution of 5 staff members to the CTF150 battle staff during the period RNZ Navy is leading the CTF150 from January 2025.

New Zealand’s interest in joining the Indo-Pacific Oceans Initiative (IPOI). PM Modi welcomed New Zealand into this partnership with like-minded countries.
Discussions on maritime cooperation at the National Maritime Heritage Complex (NMHC) at Lothal.

Capacity Building: Regular officer training exchanges at Defence Colleges.

Trade, Investment, and Financial Cooperation

India and New Zealand’s merchandise bilateral trade: India’s exports to New Zealand grew 32.1% in 2024-25 to $711.1 million. Imports from New Zealand grew 75.2% to $587.1 million over the same period.
Customs Cooperation:
- Authorized Economic Operators Mutual Recognition Arrangement (AEO-MRA): It facilitates smoother trade by easing the movement of goods between trusted traders.
- Customs Cooperative Arrangement: In August 2024, New Zealand and India signed it to enhance trade ties and intensify collaboration against transnational organized crime
Sectoral Cooperation in Horticulture and Forestry: Memorandum of Cooperation on Horticulture to promote knowledge sharing and research exchanges.
- Development of post-harvest and marketing infrastructure.
- Letter of Intent on Forestry Cooperation for policy dialogues and technical exchanges.
Tourism and Air Connectivity: Recognition of tourism’s role in enhancing economic ties and mutual understanding.
- Update to the India-New Zealand Air Services Agreement to support direct flights.
- Encouragement for airlines to commence non-stop flights between India and New Zealand.

Science, Technology, and Disaster Management

Technology Partnerships: Strengthening collaboration in research, innovation, and commercialisation of technologies.
Climate Change Cooperation:
- New Zealand’s membership in the International Solar Alliance (ISA) (since 2024).
- New Zealand’s membership in the Coalition for Disaster Resilient Infrastructure (CDRI).
Earthquake Mitigation: Work towards an MoU on Earthquake Mitigation to enhance preparedness and response capacity.

Education, Mobility, and People-to-People Ties

Education: India is the 2nd largest source of international students in NZ.
- Signing of a refreshed Education Cooperation Arrangement.
- Expansion of Indian student access to New Zealand education institutions.
Skilled Migration: Agreement to negotiate skilled worker mobility under trade agreement.
- Addressing irregular migration issues.
Sports: MoU on Sports Cooperation in cricket, hockey, and Olympic sports.
- Sporting Unity events in 2026 to celebrate 100 years of sporting ties.
Traditional Medicine: Expert discussions on knowledge exchange and collaboration.
Cultural Ties: Growing New Zealand interest in yoga, Indian music, dance, and festivals.
Promotion of bilateral cultural exchange.