India–New Zealand Conclude Landmark Free Trade Agreement, Ushering in a New Era of Economic Partnership: President, FIEO

New Delhi, December 22, 2025: Under the visionary guidance and leadership of Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, and through close and collaborative engagement of the Union Commerce and Industry, Piyush Goyal and the New Zealand’s Minister for Trade, Todd McClay, India and New Zealand have successfully concluded a landmark Free Trade Agreement (FTA) in a record time of nine months. This historic achievement marks a significant milestone in the strengthening of bilateral economic ties between the two nations.
 
Welcoming the announcement, S C Ralhan, President, Federation of Indian Export Organisations (FIEO), stated that the conclusion of the India–New Zealand FTA in such a short span reflects the strong political will and shared economic vision of both countries. This Agreement is a game-changer for Indian exporters and will significantly enhance India’s integration with global value chains.
 
Upon entry into force, the India–New Zealand FTA will provide zero-duty access on 100% of India’s exports, with tariff elimination across all tariff lines. The Agreement will also benefit farmers, MSMEs, workers, artisans, women-led enterprises and youth, while creating immense opportunities for labour-intensive sectors such as textiles, apparel, leather and footwear. Key sectors including engineering and manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals and chemicals are also expected to gain significantly. Ralhan added that the zero-duty access for Indian exports across all tariff lines is a historic achievement. It will enhance the competitiveness of Indian products in the New Zealand market and provide a major boost to employment-generating sectors.
 
FIEO Chief reiterated that the FTA provides a strong impetus to bilateral investments, with New Zealand committing to facilitate USD 20 billion in Foreign Direct Investment into India over the next 15 years, particularly in manufacturing, infrastructure, services, innovation and job creation. Ralhan also said that the investment commitment under the FTA sends a powerful signal of confidence in India’s growth story and will contribute meaningfully to manufacturing expansion, innovation and job creation, thereby giving further boost to India’s exports sector.
 
With a strong focus on farmers’ welfare, the Agreement opens new opportunities for Indian agricultural exports to New Zealand, including fruits, vegetables, coffee, spices, cereals and processed foods. Initiatives such as the Agricultural Productivity Partnership, establishment of Centres of Excellence, and access to New Zealand’s advanced agri-technologies will help improve productivity, quality and farmers’ incomes. Targeted support for horticultural products like honey, kiwifruit and apples will further strengthen sustainable agricultural growth, said Ralhan.

FIEO President also said that this FTA not only expands market access but also focuses on technology transfer and productivity enhancement, which will help Indian farmers move up the value chain and achieve higher incomes. Keeping domestic sensitivities in view, India has safeguarded key agriculture and allied products, including dairy, sugar, coffee, spices, edible oils, precious metals (gold and silver), precious-metal scrap, copper cathodes and rubber-based products, ensuring adequate protection for farmers, MSMEs and domestic industries.
 
The Agreement unlocks new opportunities for India’s services sector across IT & ITeS, finance, education, tourism, construction and other areas. Notably, New Zealand’s first-ever annexes on health, traditional medicine, student mobility and post-study work create unprecedented avenues for Indian professionals and students. Enhanced mobility provisions, including working holiday visas, post-study work pathways and a dedicated quota of 5,000 temporary employment visas for skilled Indian professionals, will further facilitate global career opportunities for Indian talent. Ralhan observed that the progressive provisions on services, mobility, student opportunities and traditional medicine are forward-looking and will greatly benefit India’s skilled professionals and youth.
 
FIEO views the India–New Zealand FTA as mutually beneficial and future-oriented agreement that will deepen economic cooperation, strengthen people-to-people ties, and support India’s long-term vision of Viksit Bharat 2047.