Saturday, March 29, 2025
India–New Zealand Free Trade Agreement Signed: Bilateral Trade Set to Double, Key Sectors to Gain
New Delhi | December 23, 2025
India and New Zealand have signed a landmark Free Trade Agreement (FTA), marking a major step forward in strengthening bilateral economic relations. This is India’s third major trade pact this year, following agreements with the United Kingdom and Oman.
The agreement was finalized after high-level talks between Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon. Both leaders described the deal as historic and transformative for long-term economic cooperation.
Bilateral Trade to Double:
India and New Zealand have set an ambitious target to double their two-way trade within the next five years from current levels. The agreement aims to remove trade barriers and encourage smoother market access for businesses in both countries.
Duty-Free Market Access:
Under the FTA, a wide range of Indian products will gain duty-free access to New Zealand’s markets. This is expected to significantly improve the competitiveness of Indian exports by reducing costs and increasing demand.
Strategic Importance in the Indo-Pacific:
The agreement is also seen as strategically important, as it strengthens India’s economic footprint in the Indo-Pacific region and deepens cooperation with a key regional partner.
Union Commerce and Industry Minister Piyush Goyal said the FTA would prove to be a major boost for several Indian industries, particularly export-oriented sectors.
Textiles and Leather:
Indian textiles, garments, footwear, and leather goods are expected to see a sharp rise in demand in New Zealand, benefiting manufacturers and exporters.
Gems, Jewellery, and Handicrafts:
The deal opens new opportunities for Indian gems, jewellery, and handmade products, providing access to a premium overseas market.
Automobile Sector:
Exports of Indian automobiles and auto components are likely to increase, helping Indian manufacturers expand their global presence.
Marine Products:
Seafood exports are expected to witness strong growth, creating fresh opportunities for India’s coastal and fisheries sectors.
Experts believe the FTA will not only boost trade volumes but also generate new employment opportunities in India, especially in the manufacturing and export sectors. By encouraging investment, enhancing supply chains, and expanding market access, the agreement is expected to support long-term economic growth.
The India–New Zealand Free Trade Agreement represents a significant milestone in India’s global trade strategy. Beyond trade expansion, it is expected to strengthen strategic ties, enhance economic resilience, and create new opportunities for Indian businesses and workers alike—making it a win-win deal for both nations.
