India-New Zealand Free Trade Agreement: India and New Zealand today signed a free trade agreement that the government says includes “artisans, farmers, small and medium enterprises, customs, talent, women and youth”. In a series of posts on social media platform X (formerly Twitter), Union Commerce Minister Piyush Goyal highlighted how the agreement provides new opportunities for the services and mobility industries.
An official release from the Department of Trade and Industry said the deal provides “the best market and service access New Zealand has to offer, opening up high-value opportunities for skilled professionals, start-ups and service-led businesses spanning 118 service sectors”.
“Enhancing Exports, Skills, Investments and Services”
In his remarks, Goyal added that the agreement “marks a defining milestone in India’s engagement with the developed world” and that at its core is “boosting exports, agricultural productivity, student mobility, skills, investment and services”.
“New Zealand’s investment commitment of $20 billion signals strong confidence in India’s growth story. It places particular emphasis on empowering SMEs, supporting innovation and enabling women-led businesses to thrive in global markets,” he added.
Key areas of interest to capitalize on
In terms of services, the India-New Zealand FTA provides “the best offer” from the southern country to empower India’s “youth, women and professionals”, according to the statement.
Bilateral trade: strong dynamics, huge potential
The statement said total trade in goods and services between India and New Zealand will reach $2.4 billion in 2024 and has shown strong bilateral growth in recent years. Bilateral trade in goods in FY 2024-25 stood at $1.3 billion, registering a growth of 49% over the previous year’s trade.
“With the FTA now signed, eliminating tariffs, improving access to services, securing `20 billion in investment and establishing robust institutional frameworks, the India-New Zealand FTA is expected to significantly boost bilateral trade, create jobs, expand exports and foster a deeper and more resilient economic partnership between the two countries in the coming years,” he added.
“Once in a Generation Opportunity”
Todd McClay, New Zealand’s trade and investment minister, called the deal a “once in a generation” opportunity to boost exports, create jobs and strengthen bilateral economic ties.
Overall, the agreement covers all tariff items or product categories and is expected to significantly boost SMEs and employment. It is also likely to enhance competitiveness in labour-intensive sectors such as textiles, clothing, leather, footwear, gems and jewellery, engineering goods and processed food. Notably, New Zealand previously maintained peak tariffs of up to 10% on key Indian exports, including ceramics, carpets, automobiles and auto components.
The newly signed pact between India and New Zealand will come into force on a date agreed upon by both parties.
