Kumar Bahukhandi
Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay sign the India-New Zealand Free Trade Agreement, in New Delhi on April 27, 2026. Picture: X/@PiyushGoyal
The FTA, negotiations for which were announced in March 2025 and concluded in December 2025, is one of the fastest to have been negotiated by India
New Delhi : India and New Zealand on Monday April 27, 2026 signed a Free Trade Agreement (FTA) that the Prime Ministers of both countries hailed as a “historic” step towards deepening trade, investment, and people-to-people ties between the two countries.
The FTA, signed by Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay in New Delhi, will see New Zealand removing all tariffs on all goods imported from India, while India will remove or reduce tariffs on 95% of current imports from New Zealand
Today marks a historic milestone in India’s journey towards deeper global engagement and shared prosperity,” Prime Minister Modi said in a statement read out by Goyal, as the Prime Minister is currently in West Bengal. “The signing of the India-New Zealand Free Trade Agreement reflects our strengthening economic partnership and a convergence of values, trust and shared ambition between two vibrant democracies.”
Stability during uncertainty
New Zealand Prime Minister Christopher Luxon — in a statement read out by McClay — said that during a time of global uncertainty, this FTA is a clear commitment by both sides to stable, predictable, and rules-based trade.
“And the India-New Zealand story is about more than trade,” Luxon said. “New Zealand and India are building a relationship that is bigger, deeper and more exciting every year — across trade, investment, defence, sport, and innovation.”
The FTA, negotiations for which were announced in March 2025 and concluded in December 2025, is one of the fastest to have been negotiated by India. The deal still needs to be ratified by New Zealand’s Parliament, which McClay said would happen soon and added that the deal would come into force within this year.
India’s exports to New Zealand grew 32.1% in 2024-25 to $711.1 million, the latest full financial year for which there is data. Imports from New Zealand grew 75.2% to $587.1 million over the same period.
Gains beyond trade
“This FTA is far more than an agreement on tariffs and rules of origin,” Goyal said. “It is a comprehensive framework spanning market access, agricultural productivity, investment, and mobility, designed to benefit manufacturing, farmers, artisans, MSMEs, women entrepreneurs, students, and skilled professionals across both nations.”
Apart from the tariff concessions, the FTA also includes several provisions relating to the mobility of working professionals and students from India.
McClay also expressed his confidence that the deal would benefit New Zealander exporters substantially as well.
“This once-in-a-generation agreement delivers opportunities New Zealand exporters have never had in India,” he said. “It will deliver thousands of jobs and unleash huge potential for our world-class exporters. Not only will it enhance established business relationships, it will accelerate the development of new partnerships to significantly boost economic engagement and bring benefits to both of our countries.”
The FTA also includes a provision wherein New Zealand has committed to facilitate $20 billion in investments into India over the next 15 years.
“Our Make in India flagship initiative offers synergy to New Zealand’s investment commitment of $20 billion in India and delivers a vibrant partnership that goes beyond trade,” PM Modi said in his statement.
Indian industry welcomes new opportunities
Industry bodies and exporters welcomed the deal, saying it would open up new opportunities for India’s exports in several key sectors.
“The FTA will open new avenues for Indian exporters by enhancing market access to New Zealand across key sectors such as agriculture, textiles, pharmaceuticals, engineering goods, and services such as IT & ITES, business services, engineering, education, construction and health services,” President of the Federation of Indian Export Organisations SC Ralhan said.
The Confederation of India Industry (CII) in a statement following the signing of the FTA, said that New Zealand’s commitment to facilitate $20 billion in investment over 15 years is expected to catalyse the development of industrial infrastructure, manufacturing ecosystems, and innovation clusters across India.
“This model signals a shift towards deeper economic integration, where trade, investment, and job creation reinforce each other, paving the way for sustained and inclusive growth,” it added.
