Why Free Trade Agreement Between India and New Zealand Is A Landmark?
India and New Zealand have concluded a comprehensive, balanced and forward-looking Free Trade Agreement (FTA) , marking a major economic and strategic milestone in India’s engagement with the Indo-Pacific region.
The Agreement stands out as one of India’s fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047. The FTA establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, drives trade and investment-led growth, fosters innovation for agricultural productivity, and enhances MSME participation to strengthen long-term economic resilience.
Speaking on the conclusion, Minister for Commerce and Industry Piyush Goyal said, “Today this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our women and for our innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage”
Elimination of tariffs on 100% of its tariff lines, provides duty-free access for all Indian exports. This market access enhances the competitiveness of India’s labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains.
The FTA delivers New Zealand’s best and most ambitious services offer in any of its FTAs to date. India has secured commitments across a wide range of high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment.
Rajesh Agrawal, Commerce Secretary, called it “A new generation trade agreement built on tariffs, agricultural productivity, Investment and Talent with complementarity at the core.”
A future-ready and facilitative mobility framework positions India as a key supplier of skilled and semi-skilled talent.
The FTA provides improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework, strengthening people-to-people ties and expanding global exposure for Indian youth.
The FTA opens Skilled Employment Pathways through a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years.
This pathway covers Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade.
Establishment of dedicated Agri-Technology Action Plans on kiwifruit, apples and honey, focus on productivity enhancement, technology, research collaboration, quality improvement and value-chain development, will strengthen domestic capabilities and support income growth for Indian farmers. Projects for apple cultivators and sustainable beekeeping practices will enhance production and quality standards.