India–New Zealand FTA: Business, Trade & Market Access FAQs for Exporters and Investors

The India–New Zealand Free Trade Agreement (FTA) provides 100 percent duty-free access for Indian exports to New Zealand, phased market access for New Zealand goods into India, expanded services trade, investment commitments of US$20 billion, new visa pathways, and strengthened regulatory cooperation. This article explains how the India–New Zealand FTA affects tariffs, sector-wise exports, services trade, investment flows, visas, and regulatory compliance for businesses operating between India and New Zealand.

India and New Zealand have concluded negotiations on a comprehensive, forward-looking Free Trade Agreement (FTA), marking a significant milestone in their bilateral economic relationship. Positioned as a “new generation” trade pact, the agreement goes well beyond tariff liberalization to address investment flows, services trade, skilled mobility, agricultural productivity, MSME cooperation, and regulatory facilitation.

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With bilateral goods and services trade reaching US$2.4 billion in 2024 and India maintaining a trade surplus, the FTA establishes a predictable and transparent framework aligned with India’s long-term economic vision, including the objectives of Viksit Bharat @2047. For businesses, exporters, investors, and professional services firms, the agreement reshapes market access conditions, reduces trade friction, and opens new commercial pathways across goods, services, and talent mobility between India and New Zealand.

The following FAQs distill the agreement’s most commercially relevant provisions and explain what they mean for executive decision-makers and trade-facing stakeholders. They have been adapted from the Department of Commerce’s Fact Sheet and explainers from the Press Information Bureau (PIB).

Frequently asked questions (FAQs): India-New Zealand FTA

1. What is the strategic significance of the India–New Zealand FTA for exporters, investors, and service providers?

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The FTA creates a rules-based, long-term economic partnership that enhances market certainty for exporters, service providers, and investors on both sides. For Indian businesses, the agreement delivers unprecedented duty-free access to the New Zealand market while safeguarding sensitive domestic sectors. For New Zealand companies, it provides calibrated entry into one of the world’s fastest-growing large economies, supported by clear tariff schedules, investment facilitation mechanisms, and sector-specific cooperation frameworks.

Beyond trade flows, the agreement integrates investment promotion, skilled mobility, regulatory cooperation, and MSME engagement – positioning it as a strategic commercial platform rather than a narrow tariff pact.

2. How does the agreement change tariff access for Indian exporters?

New Zealand has committed to providing 100 percent duty-free market access across all tariff lines for India’s current exports. This covers 100 percent of Indian export value to New Zealand and eliminates earlier peak tariffs of up to 10 percent on key products such as textiles and apparel, leather goods, ceramics, carpets, automobiles, and auto components.

As a result, Indian exporters across labor-intensive manufacturing, pharmaceuticals, chemicals, engineering goods, and agri-processed products gain immediate price competitiveness and a level playing field in the New Zealand market.

3. What market access has India offered to New Zealand under the FTA?

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India has adopted a calibrated approach to tariff liberalization. Market access has been offered on 70.03 percent of tariff lines, covering approximately 95 percent of bilateral trade value, while 29.97 percent of tariff lines remain excluded to protect sensitive sectors.

Of the tariff lines opened by India:

• 30 percent see immediate duty elimination (covering wood, wool, sheep meat, leather-raw hides, etc.)
• 35.60 percent are subject to phased elimination over 3, 5, 7, or 10 years (including petroleum oil, malt extract, vegetable oils, and select electrical and mechanical machinery, peptones, etc.)
• 4.37 percent receive tariff reductions rather than full elimination (such as wine, pharmaceutical drugs, polymers, aluminum, iron and steel articles, etc.)
• 0.06 percent are covered under tariff-rate quotas (TRQs) (including honey, apples, kiwi fruit, milk albumin, etc.)

This structure balances liberalization with domestic economic priorities.

The table below summarizes tariff elimination, sector coverage, and export opportunities for major Indian industries under the India–New Zealand FTA.

Source: Government of India, Department of Commerce; PIB

4. Which sectors are excluded from India’s tariff commitments and why?

Sensitive sectors have been deliberately excluded to safeguard domestic producers and strategic industries. These include:

• Dairy products (milk, cream, cheese, whey, yoghurt)
• Most animal products
• Key vegetable products (onions, chana, peas, corn, almonds)
• Sugar and artificial honey
• Certain fats and oils
• Arms and ammunition
• Gems and jewelry
• Select copper and aluminum products

For businesses, this exclusion list provides clarity on areas where market access will remain restricted and where domestic policy protection continues.

5. How does the FTA address agricultural trade while protecting Indian farmers?

Agricultural market access from New Zealand into India is managed through Tariff Rate Quotas – TRQs combined with Minimum Import Prices (MIPs) and seasonal windows. This applies to apples, kiwifruit, Manuka honey, and albumins (including milk albumin).

All agricultural TRQs are linked to Agriculture Productivity Action Plans, ensuring that imports are balanced with domestic capacity-building. Oversight is provided by a Joint Agriculture Productivity Council (JAPC), which monitors implementation and safeguards farmer interests.

This design ensures consumer access and quality imports while preventing market disruption.

6. What are the key TRQ details that importers and agri-businesses should note?

The agreement provides precise operational detail for TRQ-managed products:

• Manuka Honey:
  In-quota access of 200 MT annually, subject to MIP thresholds, with a 75 percent tariff reduction phased over five years.
• Apples:
  TRQ starting at 32,500 MT in year one, rising to 45,000 MT by year six, at a concessional duty rate during a defined seasonal window.
• Kiwi fruit:
  TRQ rising from 6,250 MT to 15,000 MT by year six, with zero-duty access in-quota and strict MIP conditions.
• Albumins:
  TRQ expanding from 1,000 MT to 3,000 MT over five years at a reduced duty rate.

Importers must factor in quota management, seasonal limits, and pricing safeguards when planning supply chains.

7. What investment commitments are included in the agreement?

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New Zealand has committed to facilitating USD$20 billion in long-term investment into India over a 15-year period. This investment is expected to support manufacturing, infrastructure development, innovation, and employment generation.

A notable feature is the rebalancing clause, which allows India to take remedial measures if investment commitments are not met. The agreement also promotes joint strategies in research, technology transfer, skills development, renewable energy, digital services, and modern infrastructure.

For investors, this signals policy backing for sustained capital flows rather than short-term portfolio activity.

8. How does the FTA improve access for services and professionals?

The agreement delivers significant gains for India’s services sector. New Zealand has offered market access commitments across 118 services sectors, including IT, professional services, telecommunications, audio visual services, construction services, distribution services, education, financial services, travel and tourism related services, and environmental services, among others. Additionally, Most-Favored-Nation (MFN) treatment applies across 139 sub-sectors.

These commitments enhance regulatory predictability for service exporters and support India’s comparative advantage in skilled and knowledge-based services.

9. What new mobility and visa pathways are available under the FTA?

For the first time in any trade agreement, New Zealand has created a dedicated student mobility and post-study work pathway for India. Key features include:

• Removal of numerical caps on Indian students
• Guaranteed minimum work rights during study
• Post-study work visas of up to three years for STEM graduates and four years for PhD holders

Additionally, the agreement introduces a Temporary Employment Entry (TEE) visa pathway for 5,000 skilled Indian professionals at any given time, with stays of up to three years, covering sectors such as IT, healthcare, engineering, education, construction, and traditional Indian professions.

10. How does the FTA support MSMEs and labor-intensive industries?

The agreement places explicit emphasis on MSME-driven and labor-intensive sectors, including textiles, apparel, engineering goods, chemicals, food processing, and electronics. Reduced tariffs, streamlined customs procedures, and regulatory cooperation strengthen export competitiveness and global value chain integration.

Structured MSME cooperation includes access to trade information, export readiness programs, and linkages with New Zealand’s SME ecosystem, with a focus on women- and youth-owned enterprises.

11. What trade facilitation and regulatory measures should exporters be aware of?

The FTA modernizes customs and trade facilitation procedures through:

• Faster clearance timelines (within 48 hours, and 24 hours for express and perishable goods)
• Expanded use of Authorized Economic Operator (AEO) frameworks
• Automation, single-window systems, and paperless trade
• Electronic sanitary and phytosanitary (SPS) certification

For exporters and logistics providers, these provisions reduce transaction costs, enhance supply-chain reliability, and improve compliance efficiency.

12. Are there sector-specific regulatory or recognition benefits?

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Yes. The agreement includes several sector-specific regulatory advancements:

• Pharmaceuticals and medical devices benefit from streamlined regulatory access through acceptance of GMP and GCP inspection reports from comparable regulators.
• Organic products will gain from a Mutual Recognition Arrangement based on third-country standards, supporting exports of items such as basmati rice, tea, psyllium husk, and flax seeds.
• Geographical Indications (GIs) from India will receive expanded recognition. New Zealand has committed to taking all necessary steps, including amending its domestic GI legislation, to enable the registration and protection of Indian wines, spirits, and other GI-eligible goods. This brings India in line with the treatment previously extended to the European Union. The required legal changes are to be completed within 18 months of the agreement’s entry into force.

These measures directly address non-tariff barriers and compliance duplication.

Conclusion

The India–New Zealand Free Trade Agreement represents a comprehensive commercial framework that integrates goods trade, services, investment, talent mobility, agriculture, and regulatory cooperation. For executive leadership, exporters, investors, and professionals, the agreement offers both immediate operational benefits and long-term strategic opportunities, while maintaining safeguards for sensitive sectors.

As implementation progresses, businesses will need to align tariff planning, supply-chain strategies, investment roadmaps, and mobility policies with the agreement’s phased timelines and sector-specific rules.

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