India, New Zealand Finalise FTA, Unlocking Duty-Free Access & Services Opportunities

(MENAFN- KNN India) New Delhi, Dec 22 (KNN) India and New Zealand have concluded a Free Trade Agreement (FTA), marking a significant economic and strategic development in India's engagement with the Indo-Pacific region.

The agreement ranks among India's fastest-concluded FTAs. Negotiations were formally launched on 16 March 2025 following discussions between Commerce and Industry Minister Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McClay.

The agreement was finalised after five formal negotiation rounds, supported by several in-person and virtual intersessional meetings.

Trade Liberalisation and Market Access

Under the agreement, New Zealand will eliminate tariffs on 100 per cent of its tariff lines, providing duty-free access for all Indian exports.

This is expected to enhance the competitiveness of India's labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, thereby supporting workers, artisans and MSMEs and strengthening their integration into global value chains.

Services and Mobility Framework

The FTA delivers New Zealand's most ambitious services commitments to date under any of its trade agreements.

India has secured market access across key sectors such as IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening new avenues for high-skill employment.

The agreement provides improved entry and stay provisions for Indian professionals, students and youth, including work rights during studies, post-study work opportunities, dedicated visa arrangements and a Working Holiday visa mechanism.

A new Temporary Employment Entry Visa pathway has been created for skilled Indian professionals, allowing up to 5,000 visas at any given time with stays of up to three years.

Covered occupations include IT, engineering, healthcare, education and construction, as well as Indian chefs, yoga instructors, AYUSH practitioners and music teachers.

Agriculture, Technology and Farmer Incomes

The agreement includes Agri-Technology Action Plans focused on kiwifruit, apples and honey, aimed at improving productivity, quality and value-chain development.

Cooperation will include research collaboration, improved planting material, capacity building, orchard management, post-harvest practices, supply chains and food safety. Centres of Excellence and targeted projects for apple growers and sustainable beekeeping are expected to support income growth for Indian farmers.

Investment, Manufacturing and Pharmaceuticals

The FTA strengthens bilateral investment ties, with New Zealand committing to facilitate investments of USD 20 billion into India over the next 15 years.

These investments are expected to support manufacturing, infrastructure, services, innovation and employment under the Make in India initiative, while also enabling Indian firms to leverage opportunities in New Zealand and the wider Pacific region.

In pharmaceuticals and medical devices, the agreement enables faster regulatory access through mutual acceptance of Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) inspection reports from comparable regulators, including the US FDA, EMA and UK MHRA. This is expected to reduce compliance costs and expedite approvals for Indian exports.

Regulatory Cooperation and Geographical Indications

Beyond tariff liberalisation, the FTA addresses non-tariff barriers through enhanced regulatory cooperation, transparency, streamlined customs procedures, and strengthened sanitary, phytosanitary and technical standards disciplines.

New Zealand has also committed to amend its laws to facilitate the registration of Indian geographical indications, including wines, spirits and other goods, under defined timelines.

(KNN Bureau)

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