New Delhi, December 22, 2025
India’s trade diplomacy has gathered strong momentum, with negotiations for a major trade deal with the United States progressing rapidly, even as India has successfully finalized a Free Trade Agreement (FTA) with New Zealand. Union Minister for Commerce and Industry Piyush Goyal on Monday expressed strong confidence that the agreement would deliver tangible benefits beyond trade numbers and positively impact everyday lives.
Under the agreement, New Zealand has committed to invest nearly $20 billion in India over the next 15 years, spanning manufacturing, infrastructure, services, and innovation-driven sectors. The investment is expected to generate employment, strengthen supply chains, and accelerate India’s industrial growth.
Addressing a press conference, Goyal said that once the India–New Zealand FTA comes into force, all Indian exports to New Zealand will enjoy zero customs duty. He emphasized that the move would directly benefit farmers, MSMEs, workers, artisans, women-led enterprises, youth, and labor-intensive sectors such as textiles, apparel, leather, and footwear.
The agreement was completed in a record nine months under the leadership of Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, with close coordination between Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay.
With the removal of import duties, Indian products are expected to become more affordable and competitive in the New Zealand market. This is likely to significantly boost exports from employment-generating sectors, including gems and jewelry, textiles, leather goods, and footwear.
🌾 Major Boost for Farmers and Agriculture
Goyal highlighted that the FTA would empower Indian farmers by opening new market access for agricultural exports such as fruits, vegetables, coffee, spices, cereals, and processed food products. The agreement also includes provisions for agricultural productivity partnerships, centers of excellence, and access to New Zealand’s advanced farming technologies.
Special initiatives focusing on horticultural products like honey, kiwi, and apples are expected to enhance sustainability, productivity, and farmers’ incomes.
🏭 New Opportunities for Industry and MSMEs
Beyond agriculture, the FTA creates fresh opportunities for engineering, manufacturing, automobiles, electronics, machinery, plastics, chemicals, and pharmaceuticals. Small and medium enterprises, artisans, and women entrepreneurs will be able to access international markets with fewer barriers, strengthening India’s global manufacturing footprint.
To protect domestic interests, India has excluded several sensitive sectors from the agreement, including dairy products, sugar, coffee, spices, edible oils, gold and silver, precious metal scrap, copper cathodes, and rubber-based products.
💼 Services, IT, Education, and Mobility Gains
The agreement opens new pathways for India’s services sector, covering IT and IT-enabled services, finance, education, tourism, construction, and healthcare. It also includes New Zealand’s first-ever commitments on traditional medicine, student mobility, and post-study work opportunities.
Enhanced mobility provisions include working holiday visas, post-study work options, and a special quota of 5,000 temporary employment visas, allowing skilled Indian professionals to stay for up to three years.
Professionals eligible under the scheme include AYUSH practitioners, yoga instructors, Indian chefs, music teachers, as well as experts from IT, engineering, healthcare, education, and construction sectors.
The FTA also addresses non-tariff barriers through improved regulatory cooperation, transparency, simplified customs procedures, SPS measures, and technical standards alignment, ensuring real and effective market access for exporters.
Goyal said the mutually beneficial agreement would significantly strengthen the India–New Zealand economic partnership and advance India’s long-term vision of “Viksit Bharat 2047.”
