Kumar Bahukhandi
Prime Minister Narendra Modi with New Zealand Prime Minister Christopher Luxon (AP file image)
India and New Zealand concluded the comprehensive, balanced and forward-looking FTA on December 22, marking a major economic and strategic milestone in India’s engagement with the Indo-Pacific region
Wellington: New Zealand Prime Minister Christopher Luxon on Friday December 26 described the Free Trade Agreement (FTA) with India as a landmark deal that will lead to more jobs, higher incomes and increased exports by opening access to the vast Indian market.
“We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers,” Luxon said in a post on X.
India and New Zealand concluded the comprehensive, balanced and forward-looking FTA on December 22, marking a major economic and strategic milestone in India’s engagement with the Indo-Pacific region.
The agreement is among India’s fastest-concluded FTAs and aligns with the national vision of Viksit Bharat 2047. Negotiations were formally launched on March 16, 2025, and concluded after five formal rounds of talks, along with several in-person and virtual intersessions.
The FTA establishes a high-quality economic partnership aimed at promoting employment, facilitating skill mobility, boosting trade and investment-led growth, fostering innovation in agriculture, and enhancing MSME participation to strengthen long-term economic resilience.
Under the agreement, tariffs will be eliminated on 100 per cent of tariff lines, providing duty-free access for all Indian exports. This is expected to boost labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
The FTA also delivers New Zealand’s most ambitious services offer to date. India has secured commitments across high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, creating new opportunities for Indian service providers.
A key feature of the agreement is a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations, allowing up to 5,000 visas at any given time with a stay of up to three years. This includes professions such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers, along with roles in IT, engineering, healthcare, education and construction.
In addition, the FTA addresses non-tariff barriers through enhanced regulatory cooperation, greater transparency, streamlined customs procedures, and improved sanitary and phytosanitary measures.
India–New Zealand economic ties have been steadily growing, with bilateral merchandise trade reaching USD 1.3 billion in 2024–25 and total trade in goods and services standing at around USD 2.4 billion. The FTA provides a stable framework to unlock the full potential of this partnership.
( Source : ANI )
