India, New Zealand ink free trade pact, unlocking $20 billion investment commitment

India and New Zealand on Monday signed a free trade agreement (FTA), with New Delhi describing it a “defining milestone” in the bilateral economic journey.

The signing ceremony, which took place in the Indian capital, came after last year's announcement about the conclusion of negotiations.

Indian Commerce Minister Piyush Goyal said the “landmark agreement” reflects “deep mutual trust, shared ambition, and a common commitment to prosperity.”

He said the deal was successfully concluded in a record nine months and the “forward-looking” agreement will also facilitate $20 billion of investment into India over 15 years.

“A truly win-win partnership that advances the vision of Viksit Bharat, strengthens India-New Zealand ties, and sets a new benchmark for inclusive and trusted global cooperation,” said Goyal, referring to the government's plan to transform India into a developed nation by the year 2047.

Under the agreement, there will be a 100% duty-free access for 8,284 Indian export items to New Zealand, including pharmaceuticals, engineering and agricultural products.

In return, 95% of New Zealand's current exports to India will either become tariff-free or benefit from sharply reduced tariffs.

The agreement also includes 5,000 visas to Indian service providers and professionals for short period of stays in fields including IT, specialized health services, engineering, and certain professions such as music teachers, chefs and yoga practitioners.

Indian officials said economic engagement between the two countries has shown steady momentum, with total trade in goods and services standing at approximately $2.4 billion in 2024.

New Zealand Prime Minister Christopher Luxon said the signing of FTA marks “historic milestone” in the bilateral relationship.

“For New Zealand, this FTA opens the door to one of the world’s most dynamic markets and creates unprecedented opportunities to trade, invest, innovate and connect,” he said on the US social media platform X.

“This deal will help diversify New Zealand’s export markets, support the goal of doubling the value of our exports over 10 years and put New Zealand exporters on a more level playing field with competitors already enjoying preferential access in India.”