India and New Zealand are set to sign a historic Free Trade Agreement (FTA) on April 24, 2026, at Bharat Mandapam in New Delhi. This agreement, which follows the conclusion of negotiations in December 2025, is expected to catalyze a $20 billion investment boost into India over the next 15 years and aims to double bilateral trade to $5 billion within five years.
Key Highlights of the Agreement
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Zero-Duty Market Access: India will receive 100% duty-free access for all its exports to New Zealand immediately upon the pact’s entry into force.
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Tariff Reductions for New Zealand: India will eliminate or reduce tariffs on approximately 95% of New Zealand’s exports, including coal, wool, wood, wine, avocados, and blueberries.
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Skilled Professional Visas: A major win for India’s services sector is the creation of a dedicated visa pathway. New Zealand will provide 5,000 visas annually for Indian professionals in skilled occupations (including IT, engineering, healthcare, and education) with a stay of up to three years.
[Graph showing the projected growth of India-NZ bilateral trade to $5 billion]
Strategic Safeguards for India
To protect domestic farmers and sensitive industries, India has excluded several key sectors from duty concessions:
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Dairy Products: No concessions on milk, cream, whey, yogurt, or cheese.
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Agriculture & Commodities: Onions, sugar, spices, edible oils, and rubber remain protected.
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Sensitive Fruits: Items like apples, kiwifruit, and honey are also shielded from lower-priced imports.
Economic Context (2024–2025)
The agreement seeks to significantly scale what is currently a modest trade relationship:
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Bilateral Merchandise Trade: $1.3 billion.
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Total Trade (Goods & Services): Approximately $2.4 billion.
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Key Services: Travel, IT, and business services currently lead the services trade ($1.24 billion).
Expanding Opportunities
Beyond traditional goods, the FTA includes special provisions for:
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Traditional Arts & Medicine: Visas for AYUSH practitioners, yoga instructors, Indian chefs, and music teachers.
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Resource Security: Immediate duty-free access for New Zealand’s coal and forestry products to support India’s manufacturing and energy needs.
