India-New Zealand concludes Free Trade Agreement in record 9 months; Agreement to Enhance Bilateral Economic Engagement

POSTED BY : MRUNALI SAKPAL DT. 25/12/2025 📞  8850212023

MUMBAI (RMN.IN):  – World Trade Centre Mumbai and All India Association of Industries (AIAI) welcome the conclusion of the landmark Free Trade Agreement (FTA) negotiations between India and the Republic of New Zealand, announced on December 21, 2025, by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon.

The successful completion of negotiations within nine months represents a defining moment in India’s trade relations with the Indo-Pacific region and underscores the shared commitment of both nations to deepen economic integration, enhance market access, and foster sustainable prosperity.

Welcoming the announcement, Dr. Vijay Kalantri, Chairman, World Trade Centre Mumbai and President, All India Association of Industries said, “The India-New Zealand FTA represents a comprehensive framework designed to unlock unprecedented opportunities across goods, services, investment, and people-to-people engagement. This aligns seamlessly with India’s broader strategic objectives under the Viksit Bharat 2047 vision and reaffirms India’s position as a key economic partner in the Asia-Pacific region”.

“Though the tariff rate has come down from an average of 2% to nil, the agreement is noteworthy for its commitment on investments, mobility of students and professionals and recognition to regulators, etc which will pay us rich dividend in the long term. Further, restricted market access for dairy and certain key agricultural products will protect our farmers”, stressed Dr. Kalantri.

Expressing optimism for the future, Dr. Kalantri said, “such treaties give signal and show confidence that India is ready to play its part to accelerate global trade and expand its export destinations. This is not merely a trade agreement; it is a blueprint for partnership that will deepen the civilisational and economic bonds between our two democracies”.

With this agreement in place, New Zealand will offer of duty-free access on 100 per cent of its tariff lines, while India will open 70% of its tariff lines. Further, New Zealand will invest 20 billion dollars in India over 15 years.  Consensus was also reached on Student Mobility and Post Study Work Visa for STEM Graduates, Skilled Professionals opening new visa pathway for nearly 5,000 skilled occupations.