New Delhi: India and New Zealand have concluded a long-awaited Free Trade Agreement (FTA), with External Affairs Minister Subrahmanyam Jaishankar describing the pact as a “historic milestone” that opens a new chapter in bilateral ties.
Notably, the agreement allows for 5,000 annual visas for skilled Indian professionals, which is likely to benefit industries such as information technology and healthcare.
The agreement, finalised on April 27 after years of negotiations, is expected to significantly deepen economic cooperation, enhance market access, and boost investment flows between the two nations. It was signed in the presence of Union Commerce Minister Piyush Goyal and New Zealand’s Trade and Agriculture Minister Todd McClay.
Under the terms of the FTA, 100 per cent of Indian exports to New Zealand will enjoy tariff-free access. In return, tariffs on 95 per cent of goods imported from New Zealand into India will either be eliminated or substantially reduced, signalling a major liberalisation of bilateral trade.
Taking to social media platform X, Jaishankar said the agreement would “forge stronger economic partnerships, boost investments and enhance market access for our exporters”. He added that it would unlock new opportunities for innovators, entrepreneurs, farmers, MSMEs, as well as women and youth across sectors.
A key highlight of the agreement is a provision for New Zealand to invest approximately $20 billion in India over the next 15 years. The deal is also expected to give a significant push to Indian exports, particularly in labour-intensive and high-growth sectors such as textiles, pharmaceuticals and engineering goods.
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In a statement to the media, the government said that the FTA further includes provisions aimed at enhancing mobility and people-to-people ties. In addition, the agreement is expected to ease post-study work visa norms for Indian students in New Zealand.
Currently, around 8,000 Indian students are pursuing higher education there.
Jaishankar emphasised that the agreement was concluded in record time under the leadership of Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon. He noted that bilateral economic relations are at their strongest to date.
Both countries have set an ambitious target of doubling bilateral trade to $5 billion within the next five years, with the FTA expected to serve as a key driver in achieving this goal.
