India-New Zealand FTA: 100% zero-duty access for Indian exports & student mobility— What else does the $1 bn trade deal offer?

India and New Zealand on Monday announced the conclusion of a landmark Free Trade Agreement (FTA), one of the fastest trade deals India has sealed with a developed country. The pact was finalised within nine months after negotiations were launched in March 2025, reflecting strong political intent to deepen economic ties under India’s Viksit Bharat 2047 vision.

Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon jointly announced the agreement, describing it as comprehensive, balanced and forward-looking. The Prime Minister’s Office said the FTA would act as a catalyst for higher trade, investment, innovation and people-to-people links between the two countries.

The India–New Zealand FTA is the third trade pact concluded by New Delhi this year. The government said the agreement is people-centric and jobs-driven, with benefits spread across exporters, MSMEs, farmers, students, professionals and manufacturers.

Key highlights of the India–New Zealand FTA

Zero-duty access for India

• New Zealand to provide zero-duty market access on 100% of India’s exports
• Major gains for textiles, apparel, leather, footwear, engineering goods, pharmaceuticals and farm products

Also Read: India concludes FTA talks with New Zealand, cuts tariffs on 95% Kiwi goods

Tariff cuts for New Zealand

• India to liberalise tariffs on 70% of tariff lines
• Covers nearly 95% of bilateral trade

Services and market access

• New Zealand offers access in 118 services sectors
• MFN treatment extended in 139 sub-sectors
• Includes IT, professional services, telecom, construction, tourism and education

Student mobility

• No numerical caps on Indian students
• Post-study work rights: Up to 3 years for STEM bachelor’s and master’s graduates; Up to 4 years for doctoral scholars

Jobs and professional visas

• Temporary Employment Entry Visa for 5,000 Indian professionals
• Covers AYUSH practitioners, yoga instructors, chefs, music teachers
• Includes IT, engineering, healthcare, education and construction
• 1,000 work and holiday visas annually

Also Read: New Zealand to ease work visas and student mobility for Indians under FTA

Investment push

• New Zealand to facilitate $20 billion investment into India over 15 years

Agriculture cooperation with safeguards

• Centres of Excellence for apples, kiwifruit and honey
• Focus on productivity, research and farmer incomes
• Sensitive items like dairy, sugar, spices, edible oils excluded from market access

Support for manufacturing

• Duty-free inputs such as wooden logs, coking coal, metal waste and scrap

Pharma and medical devices

• Faster regulatory approvals through acceptance of global inspection reports including approvals by the US FDA, EMA, UK MHRA, and other comparable regulators.

The government said the agreement provides a stable framework to expand bilateral trade, which stood at about $2.4 billion in 2024, and strengthens India’s push to emerge as a globally competitive and resilient economy by 2047.