India–New Zealand FTA Eliminates Tariffs, Boosts Trade & Mobility

New Delhi, April 27 India and New Zealand on Monday signed a landmark Free Trade Agreement (FTA), granting duty-free access to 100% of Indian exports and reducing or eliminating tariffs on 95% of imports from New Zealand.

The pact was formalised in the presence of Commerce Minister Piyush Goyal and his counterpart Todd McClay, concluding negotiations in a record nine months.

Under the agreement, New Zealand will remove existing tariffs of up to 10% on key Indian exports such as textiles, leather, carpets, ceramics, and auto components—enhancing India’s export competitiveness. The deal also includes a $20 billion investment commitment from New Zealand over 15 years.

A major highlight is enhanced mobility provisions, including:

Up to 5,000 skilled visas annually for Indian professionals across sectors like IT, healthcare, engineering, and AYUSH
A Working Holiday Visa for 1,000 young Indians each year
Expanded student mobility, allowing part-time work and extended post-study visas

India has safeguarded sensitive sectors by excluding dairy and key agricultural products from the agreement.

The FTA is expected to significantly benefit India’s leather industry, particularly hubs like Agra, which contributes nearly 75% of the country’s leather footwear production. With tariffs on leather goods reduced to zero, exporters are poised for accelerated growth.

Additionally, the agreement streamlines regulatory processes for pharmaceuticals and medical devices, enabling faster approvals through mutual recognition of global standards and introducing a dedicated chapter on health and traditional medicine.

Overall, the India–New Zealand FTA marks a major step in strengthening bilateral trade, investment, and workforce mobility while opening new growth avenues for key sectors.