India and New Zealand have officially announced the conclusion of negotiations for a comprehensive Free Trade Agreement (FTA), marking a significant milestone in their bilateral economic relationship. Covering trade in goods, services, and investment, the agreement reflects a shared strategic intent to deepen economic engagement, expand market access, strengthen supply chain resilience, and foster long-term cooperation between two complementary economies in the Indo-Pacific region.

This FTA is positioned as a modern, balanced, and forward-looking agreement, aligning closely with India’s national development priorities while offering New Zealand enhanced access to one of the world’s fastest-growing major economies.

For Indian exporters, the deal is particularly significant: New Zealand has committed to provide 100% duty-free access for all Indian exports, while India has carefully calibrated its own concessions to protect sensitive sectors such as dairy and key agricultural products.

This article, prepared for sharing on LinkedIn on behalf of Entellus International Private Limited, outlines the key features, sectoral opportunities, and practical implications of the India–New Zealand FTA for businesses engaged in international trade.

Strategic Context and Importance of the Agreement: Fastest-Concluded FTA and Gateway to Oceania

Formal negotiations for the India–New Zealand FTA were launched in March 2025 and concluded within a notably short timeframe, underscoring strong political commitment on both sides. The swift conclusion places this agreement among India’s fastest-negotiated FTAs and signals New Delhi’s renewed momentum in trade diplomacy following recent agreements with key global partners.

From a strategic standpoint, the FTA strengthens India’s footprint in the Oceania region and complements its broader Indo-Pacific economic strategy. For New Zealand, the agreement deepens engagement with India as a long-term growth partner and supports diversification beyond traditional export markets. Both governments have expressed a shared ambition to substantially expand bilateral trade flows over the coming years.

Key strategic features include:

• Alignment with “Viksit Bharat 2047”: The FTA is explicitly positioned as part of India’s broader strategy to boost exports, create high-quality jobs, and deepen integration with key Indo-Pacific partners.
• Gateway to Oceania and Pacific Island markets: Preferential access into New Zealand – an advanced, high-income market – is expected to serve as a springboard for Indian exporters into the wider Oceania region.
• Diversification amid global uncertainty: With rising unilateral tariffs and geopolitical risks, India is using new-generation FTAs (UK, Oman, and now New Zealand) to diversify export destinations and strengthen value chains.

Bilateral trade in goods and services currently stands in the range of USD 2.0–2.4 billion, and both governments have publicly stated their ambition to double this figure within five years of implementation.

Tariff Outcomes: Unprecedented Duty-Free Access for Indian Exports

One of the most significant outcomes of the agreement is New Zealand’s commitment to provide 100% duty-free access on all tariff lines for Indian exports. This represents unprecedented market access for Indian goods and delivers an immediate competitive advantage for Indian exporters in a high-income, rules-based market.

Labor-intensive and value-added sectors such as textiles, apparel, leather goods, engineering products, auto components, gems and jewelry, pharmaceuticals, medical devices, marine products, and processed foods stand to benefit significantly. Complete tariff elimination enhances price competitiveness, supports market expansion, and encourages Indian firms to deepen their presence in New Zealand and the wider Pacific region.

Indian Exports to New Zealand

The headline outcome for India is clear and transformative:

• 100% duty-free access for Indian exports

This creates immediate and substantial opportunities for a wide spectrum of Indian exporters, especially in:

• Textiles, apparel and leather – major labor-intensive sectors benefit from complete tariff elimination, enhancing competitiveness relative to regional peers.
• Engineering goods and auto components – improved price competitiveness in machinery, industrial components, and automotive parts.
• Gems and jewelry – duty-free treatment supports higher-value, design-driven exports into a premium consumer market.
• Pharmaceuticals and medical devices – supported by regulatory cooperation and mutual recognition provisions.
• Marine products and processed foods – especially where India already has capabilities to meet high sanitary and phytosanitary (SPS) standards.

For Indian businesses, this is effectively a “first-mover advantage”: New Zealand has confirmed that the level of duty-free access extended to India is unmatched by its current commitments to any other country.

New Zealand Exports to India

India has reciprocated with carefully sequenced concessions that balance the interests of consumers, manufacturers, and farmers:

• Tariffs will be eliminated or reduced on around 95% of New Zealand’s exports to India, by value, over time.
• More than 50% of New Zealand exports to India will become duty-free from day one, rising above 80% over the implementation period.

Key New Zealand beneficiaries include:

• Horticulture (apples, kiwis, cherries)
• Wool and some forestry products
• Selected meat, coal, and certain seafood items (with staging and quotas in some cases)

These tariff cuts will support lower input costs and broaden sourcing options for Indian manufacturers and consumers, especially in sectors where India is structurally import-dependent.

Balanced Market Access for New Zealand with Safeguards for India

India has reciprocated with a carefully calibrated tariff liberalization package that balances consumer and industrial benefits with the protection of domestic sensitivities. Under the agreement, tariffs will be eliminated or reduced on approximately 95% of New Zealand’s exports to India by value, with a substantial proportion becoming duty-free from the first day of implementation.

At the same time, India has explicitly safeguarded sensitive sectors, particularly dairy and select agricultural products. Core items such as milk, butter, cheese, whey, onions, sugar, edible oils, spices, and rubber remain excluded from tariff concessions. This approach ensures that India’s farmers, rural livelihoods, and food security interests are protected while still delivering a high-quality trade agreement.

Protection of India’s Sensitive Sectors

Crucially, the FTA has been negotiated in line with India’s domestic sensitivities and rural livelihoods:

• Dairy and core agricultural products are excluded from tariff concessions.
• Exclusions cover items such as dairy (milk, cream, butter, cheese, yoghurt, whey, casein), onions, sugar, spices, edible oils, and rubber, among others.

This design allows India to secure aggressive market access for its exporters while safeguarding farmers and vulnerable segments, directly aligning the FTA with India’s inclusive growth and food security priorities.

Deep Commitments on Trade in Services

The India–New Zealand FTA goes beyond goods to include ambitious commitments on services trade. New Zealand has extended one of its most comprehensive services offers to India, covering a wide range of sub-sectors including IT and IT-enabled services, professional services, financial services, education, tourism, construction, telecommunications, and business services.

For India, whose economy is increasingly driven by services exports, this creates meaningful opportunities for Indian firms to expand operations, establish commercial presence, and provide cross-border services in New Zealand under a transparent and predictable regulatory framework.

Beyond goods, the India–New Zealand FTA is explicitly structured as a next-generation agreement with deep commitments on services and mobility.

New Zealand has reportedly extended its most ambitious services market-access package in any FTA to date, covering around 118 services sub-sectors. Key domains include:

• IT and IT-enabled services
• Professional services (legal, accounting, engineering, architecture)
• Financial and business services
• Tourism, education and training
• Telecommunications and construction services

For India – a services-driven economy – this is a significant opportunity to deepen the presence of Indian firms and professionals in a high-income, services-intensive market.

Mobility, Talent and Professional Cooperation

A key pillar of the agreement is improved mobility for students, professionals, and skilled workers. The FTA introduces clearer and more predictable pathways for Indian professionals, intra-corporate transferees, and specialists, alongside enhanced cooperation in education and training.

Provisions relating to regulatory cooperation and mutual recognition in selected professions further support the movement of talent. These measures are expected to benefit Indian IT professionals, consultants, educators, healthcare providers, and other skilled service suppliers seeking opportunities in New Zealand.

The agreement also provides for simplified and more predictable mobility pathways for:

• Students, through improved education cooperation and post-study prospects.
• Skilled professionals, intra-corporate transferees and specialists, via clearer visa and stay provisions.
• Mutual recognition and regulatory cooperation in selected professional services.

These features will be particularly relevant for Indian IT, consulting, education and healthcare providers seeking to deploy talent on-site in New Zealand.

Financial Services, Fintech and Digital Trade

The agreement includes a dedicated focus on financial services and digital cooperation. Commitments cover enhanced regulatory dialogue in banking, insurance, and capital markets, as well as collaboration in fintech and digital payment systems.

By facilitating faster, safer, and lower-cost cross-border payments, the FTA reduces transaction friction for exporters, importers, and service providers. This aligns well with India’s global leadership in digital public infrastructure and supports smoother trade and investment flows between the two economies.

A dedicated Financial Services Annex has also been concluded as part of the FTA’s services chapter, with a focus on:

• Enhanced regulatory cooperation in banking, insurance and capital markets.
• Fintech and digital finance collaboration, including interoperable fast payment systems.
• Facilitating real-time, low-cost cross-border payments for trade, remittances and tourism.

This will reduce transaction frictions for both exporters and importers, while supporting the internationalization of India’s cutting-edge digital public infrastructure.

Investment Cooperation and Long-Term Economic Partnership

Investment is a core pillar of the India–New Zealand FTA. New Zealand has indicated its intention to facilitate up to USD 20 billion in investment into India over the next 15 years, targeting areas such as manufacturing, services, logistics, infrastructure, Agri-technology, food processing, green technologies, and innovation-led sectors.

The investment framework under the agreement aims to provide stability, transparency, and predictability for investors while preserving policy space for both governments. This long-term investment orientation reinforces the agreement’s role as a platform for sustained economic partnership rather than short-term trade gains.

Indicative focus areas include:

• Manufacturing and industrial infrastructure
• Services and innovation ecosystems
• Green technologies, Agri-technology and food processing
• Logistics, supply-chain and warehousing

The FTA’s investment chapter aims to provide a stable, predictable framework for investors, with provisions on transparency, regulatory cooperation, and dispute-prevention mechanisms, while preserving adequate policy space for both governments.

Implementation and the Road Ahead

With negotiations concluded, the agreement will now move through legal finalization, signing, and domestic ratification processes in both countries. In India, this will involve standard internal approvals and notification, while in New Zealand the agreement will be subject to parliamentary scrutiny.

While the precise date of entry into force will depend on these processes, businesses are encouraged to begin preparations now to ensure readiness from Day One of implementation.

For businesses, this means:

• The headline outcomes are now clear and politically endorsed,
• But exact timelines for entry into force will depend on completion of legal and legislative processes, likely in early 2026.

Companies planning to leverage the FTA should start their internal preparation now, so that they are ready to act from Day One of implementation.

What the FTA Means for Indian Exporters and Importers

For Indian exporters, the FTA presents immediate and long-term opportunities to access a premium market with zero-duty advantages. Companies should proactively map their products to tariff schedules, review rules of origin requirements, strengthen quality and compliance systems, and recalibrate pricing and market strategies to fully capture duty savings.

Indian importers and manufacturers can also benefit from more competitive sourcing of New Zealand inputs such as horticulture products, wool, forestry items, and select raw materials, improving supply chain efficiency and cost competitiveness.

Priority Sectors for Indian Exporters

Based on the official factsheet and emerging analyses, key Indian winners are expected to include:

• Textiles, apparel, footwear and leather – leveraging zero-duty access into a high-value, brand-conscious market.
• Engineering products, machinery and auto components – supported by tariff elimination and strong demand for industrial inputs.
• Gems, jewelry and lifestyle products – tapping affluent consumer segments in New Zealand.
• Marine products and processed foods – benefiting from tariff removal alongside rising demand for diverse food products.
• Pharmaceuticals and medical devices – aided by regulatory cooperation and high quality-of-care standards.
• IT, business services, education and healthcare providers – utilizing enhanced services and mobility provisions.

Bilateral Trade Outlook: Doubling in Five Years

India–New Zealand trade has already shown strong momentum:

• Merchandise trade grew from roughly USD 873 million in FY 2023–24 to about USD 1.3 billion in FY 2024–25 (approx. 49% growth).
• India’s merchandise exports to New Zealand reached around USD 711 million in 2024–25, up about 32%.
• Services trade is also expanding, with India’s services exports to New Zealand estimated at over USD 600 million, dominated by travel, IT and business services.

Economic assessments on both sides indicate that:

• Bilateral trade in goods and services could double to around USD 5 billion within five years of the Agreement’s entry into force.
• Indian MSMEs in labor-intensive sectors are poised to see meaningful gains in exports and employment.
• New Zealand stands to diversify its export basket into India beyond dairy, especially in horticulture, wood, wool, and coal, while leveraging India’s growing middle-class demand.

Entellus International’s Perspective: Partnering for FTA-Led Growth

The India–New Zealand Free Trade Agreement is a landmark development that reinforces India’s evolving trade strategy—one that prioritizes market access, economic resilience, and inclusive growth while safeguarding national interests. For Indian and global businesses, the India–New Zealand FTA is more than a tariff-cutting exercise; it is a strategic platform to build resilient, diversified and future-ready value chains across the Indo-Pacific.

As a leading multi-commodity exporter, importer, and global sourcing partner, Entellus International Private Limited closely monitors global trade agreements and their practical implications for businesses. We support clients in identifying FTA-driven opportunities, aligning product portfolios with preferential market access, optimizing sourcing strategies, and building sustainable cross-border partnerships.

As this agreement moves toward implementation, Entellus International remains committed to helping exporters, importers, and global partners translate the India–New Zealand FTA into tangible trade growth, stronger value chains, and long-term commercial success.

In practical terms, Entellus International can support:

• Market and product identification for Indian exporters looking to enter or scale in New Zealand under the new duty-free regime.
• HS code mapping and FTA utilization strategy, including RoO assessment and documentation readiness.
• Global sourcing and supply-chain solutions for Indian and New Zealand companies seeking to optimize cost, quality and reliability.
• Long-term partnership models that combine trade, investment, and technology collaboration across multiple sectors.
• Structure export strategies that maximize duty-free access while respecting rules of origin and regulatory requirements.
• Support MSMEs and large enterprises in building sustainable, compliant and diversified trade corridors with New Zealand and the wider Indo-Pacific.
• Compliance and documentation readiness, to ensure that tariff preferences and NTB disciplines translate into real, on-the-ground access.

As the FTA moves from negotiation conclusion to legal finalization and implementation, Entellus International remains committed to helping businesses convert this landmark agreement into concrete export growth, diversified sourcing, and sustainable, inclusive value creation on both sides of the Indian Ocean.

Entellus International Private Limited will continue to track the Agreement’s implementation modalities and emerging sector-specific details, and we stand ready to work with businesses in India and overseas to translate this landmark FTA into tangible commercial outcomes.

If you would like to explore how your product or service portfolio can benefit from the India–New Zealand FTA, our team at Entellus would be pleased to engage with you.

Conclusion

The conclusion of negotiations on the India–New Zealand Free Trade Agreement represents a strategic, high-ambition, yet carefully calibrated step in India’s trade diplomacy. By delivering 100% duty-free access for Indian exports into New Zealand, ambitious services and mobility provisions, and a USD 20 billion investment commitment—while safeguarding sensitive domestic sectors—the agreement aligns global integration with India’s national priorities of inclusive, resilient and innovation-led growth.

For Indian businesses prepared to move early and strategically, the India–New Zealand FTA is not just a new market access instrument—it is a gateway to long-term competitiveness in a rapidly evolving Indo-Pacific trade landscape.