'India-NZ FTA opens door to 1.4 bn consumers'

New Zealand Prime Minister Christopher Luxon has said the newly concluded India–New Zealand Free Trade Agreement will translate into more jobs, higher incomes and a sharp rise in exports, calling it a promise delivered within his government’s first term as it opens New Zealand businesses to India’s vast consumer base.“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 on Saturday, under the tagline “Fixing the Basics. Building the Future.”— chrisluxonmp (@chrisluxonmp) Inside India, New Zealand's landmark FTAIndia and New Zealand on Monday formally announced the conclusion of the FTA, one of the fastest trade deals New Delhi has sealed with a developed economy. Negotiations were wrapped up within nine months of being launched in March 2025, underscoring the political push on both sides to deepen economic engagement in line with India’s Viksit Bharat 2047 vision.Prime Minister Narendra Modi and Luxon jointly unveiled the agreement, describing it as comprehensive, balanced and future-oriented. The Prime Minister’s Office said the pact is expected to act as a catalyst for higher trade, investment flows, innovation and stronger people-to-people ties.The India–New Zealand FTA is the third trade agreement concluded by India this year. Officials have characterised it as people-centric and jobs-driven, with gains expected across exporters, MSMEs, farmers, manufacturers, students and professionals.What's in the deal?Under the deal, New Zealand will provide zero-duty access on 100 percent of India’s exports, delivering significant opportunities for sectors such as textiles and apparel, leather and footwear, engineering goods, pharmaceuticals and agricultural products. In return, India will liberalise tariffs on around 70 percent of its tariff lines, covering nearly 95 percent of bilateral trade.The agreement also places strong emphasis on services and mobility. New Zealand has offered market access in 118 services sectors and extended MFN treatment in 139 sub-sectors, including IT, professional services, telecom, construction, tourism and education. Indian students will face no numerical caps, with post-study work rights of up to three years for STEM graduates and up to four years for doctoral scholars.In a move aimed at addressing skills and workforce needs, the pact provides for a Temporary Employment Entry Visa for 5,000 Indian professionals across fields such as IT, engineering, healthcare, education and construction, along with dedicated categories for AYUSH practitioners, yoga instructors, chefs and music teachers. An additional 1,000 work-and-holiday visas will be issued annually.On the investment front, New Zealand has committed to facilitating investments worth $20 billion into India over the next 15 years. The agreement also includes cooperation in agriculture through Centres of Excellence for apples, kiwifruit and honey, while safeguarding sensitive sectors by excluding items such as dairy, sugar, spices and edible oils from market access commitments.Support measures for manufacturing include duty-free access to key inputs like wooden logs, coking coal, and metal waste and scrap, while pharmaceutical and medical device companies are set to benefit from faster regulatory approvals through acceptance of global inspection reports by regulators such as the US FDA, EMA and UK MHRA.