New Delhi: On the eve of the signing of a Free Trade Agreement (FTA) between the two countries, India’s Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay on Sunday met industry leaders in Agra to outline opportunities for both sides. The outreach underscores efforts to help businesses take advantage of duty-free access and expand trade across key sectors.
The Minister for State Fisheries, Animal Husbandry and Dairying SP Baghel was also part of the engagement. The event brought together leaders from industries including leather and footwear, traditional health systems, medical devices, light engineering and sporting goods, along with small businesses.
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According to the government, the two sides said the FTA is more than just a tariff agreement and that it represents a comprehensive framework covering market access, agricultural productivity, investment, talent mobility, sports cooperation, tourism and people-to-people ties.
The agreement is expected to benefit manufacturers, farmers, micro, small and medium enterprises (MSMEs), businesswomen, students and skilled professionals from both countries.
Agra, which accounts for around 75% of India’s leather footwear production, has been highlighted as a major beneficiary of the pact. The city holds the Geographical Indication (GI) brand for leather footwear and is also the flagship product area under the One District One Product programme.
The FTA, which eliminates tariffs on 100% of Indian exports from entry into force and reduces tariffs on leather and footwear from 5% to zero, is expected to give Indian exporters a significant competitive advantage in the New Zealand market.
Industry representatives said the leather sector has the potential to grow to $50 billion by 2030, driven by a shift from mass production to high-value-added production. In FY25, the turnover of the Indian leather and footwear sector was approximately $24.6 billion, according to the Council for Leather Exports (CLE). This included exports of US$5.5–5.6 billion.
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They also pointed to the complementarity between New Zealand’s raw hide resources and India’s manufacturing capabilities, with both sides expressing interest in tapping into the opportunity.
The pharmaceutical and medical device industry welcomed provisions to expedite regulatory access, including the adoption of Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) inspection reports from comparable international regulatory bodies. The move is expected to reduce the compliance burden and speed up product approvals for Indian manufacturers.
They also welcomed the inclusion of a special chapter on health and traditional medicine in the agreement, the first recognition of ‘Ayush’ or traditional health care systems.
Addressing the gathering, Goyal said the agreement will create significant opportunities in education and talent mobility and urged the industry and stakeholders to actively utilize these provisions. He invited Indian students and professionals to explore the avenues created under the pact and asked businesses to see the agreement as a gateway to a deeper people-centric partnership.
He described the FTA as an opener of both doors and minds and urged industry bodies to ensure that the benefits reach every MSME across sectors.
McClay said India was a strategic priority for New Zealand and described the pact as the highest quality FTA New Zealand had entered into. He encouraged businesses on both sides to pursue joint ventures and highlighted the significant investment opportunities his country’s businesses see in India’s growing economy.
The India-New Zealand Free Trade Agreement was concluded in nine months after negotiations began in March 2025.
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Bilateral merchandise trade between India and New Zealand rose to $1.3 billion in FY25 from $873 million the previous year, according to the Commerce Department. India’s key exports to the country include pharmaceuticals, textiles and garments, engineering goods, leather products and automobile components, while imports from New Zealand include wool, timber, fruits, agricultural products, etc.
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