India–New Zealand Free Trade Agreement (2025)

Core Update

India and New Zealand have jointly announced the conclusion of a landmark Free Trade Agreement (FTA) on 22 December 2025.

What is the India-NZ FTA?

A bilateral free trade agreement concluded after 9 months of negotiations, offering zero-duty market access on 100% of India's exports.

Key Features of the FTA

• Negotiations launched: 16 March 2025
• Negotiation period: 9 months
• Zero-duty market access on 100% of India's exports
• India offered tariff liberalisation in 70% tariff lines, covering 95% of bilateral trade

Trade and Investment Commitments

• Target to double bilateral trade in five years
• New Zealand committed USD 20 billion investment in India over 15 years
• Investment commitments are binding, with claw-back provisions

Services and Mobility

• Best-ever services offer by New Zealand
• Coverage of 118 services sectors
• Post-study work visas:
  • Up to 3 years for STEM graduates
  • Up to 4 years for doctoral scholars
• Dedicated quotas:
  • 5,000 Temporary Employment Entry visas
  • 1,000 Work and Holiday visas

Agricultural Safeguards

• Market access excludes sensitive products such as dairy, onions, sugar, edible oils
• Centres of Excellence for apples, kiwifruit and honey

UPSC Relevance

• GS-II: Bilateral agreements, diplomacy
• GS-III: Trade, investment, services, mobility

Prelims Trap Alert

⚠️ This is a bilateral FTA, not a multilateral agreement. Investment commitment is time-bound and enforceable.

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