A New Chapter in Bilateral Trade and Investment
The India–New Zealand Free Trade Agreement (FTA), signed on 27 April 2026, represents a historic milestone in strengthening economic ties between two complementary economies.
The Agreement creates new pathways for trade, investment, services, innovation, and people-to-people engagement, while supporting a balanced and practical framework for long-term cooperation between both countries.
India is one of the world’s fastest-growing major economies, while New Zealand is internationally recognised as a trusted, export-driven economy with strong global trade linkages.
The FTA is expected to create significant new opportunities for exporters, importers, investors, professionals, and businesses on both sides.
Why This Agreement Matters
The India–New Zealand FTA supports:
- Greater market access in both directions
- Diversification of trade and supply chains
- Stronger business and investment partnerships
- Improved competitiveness for exporters
- Deeper bilateral engagement supported by New Zealand’s large Indian diaspora community
India’s economy is projected to become the world’s third-largest economy over the coming years, with an expanding middle-class consumer market expected to exceed 700 million people by 2030.
This presents substantial long-term opportunities across sectors including:
- Food and beverages
- Forestry and timber
- Education and professional services
- Technology and innovation
- Tourism and hospitality
- Manufacturing and engineering
- Healthcare and wellness
Key Facts on India–New Zealand Trade
- India is currently New Zealand’s 11th-largest goods and services export market
- Two-way annual trade between both countries is valued at approximately NZ$3.95 billion
- New Zealand exported approximately NZ$2.03 billion in goods and services to India in the year ending December 2025
- India is New Zealand’s:
- 21st-largest goods export market
- 5th-largest services export market
Key New Zealand exports to India include:
- Travel and tourism services
- Forestry and wood products
- Horticulture products including apples and kiwifruit
- Aluminium
- Iron and steel
- Wool
What New Zealand Gains
The Agreement provides significant commercial advantages for New Zealand exporters and service providers.
Key benefits include:
- Up to 95% of New Zealand’s current exports expected to receive tariff-free access or significant tariff reductions over time
- More than half of current exports benefiting from full tariff elimination immediately upon entry into force
- Improved customs efficiency and reduced compliance costs
- Better access to India’s rapidly growing middle-class consumer market
- Stronger competitiveness against countries already benefiting from Indian FTAs
Major sector outcomes include:
- Forestry: Over 95% of exports expected to enter tariff-free immediately
- Wool and sheep meat tariffs removed immediately
- Seafood tariffs progressively phased out
- Preferential access secured for apples and kiwifruit
- Significant tariff reductions for wine exports over time
- Tariff reductions for mānuka honey and selected dairy-related products
The Agreement is also expected to improve long-term export diversification and reduce reliance on traditional export markets.
What India Gains
The FTA also creates substantial opportunities for Indian exporters and businesses entering the New Zealand market.
Key benefits include:
- 100% duty-free access for Indian exports into New Zealand from entry into force
- Expanded opportunities across:
- Textiles and apparel
- Pharmaceuticals and medical devices
- Engineering and manufacturing
- Machinery and electrical goods
- Processed foods and consumer products
- Greater integration into New Zealand supply chains and consumer markets
- Enhanced competitiveness against other international suppliers
New Zealand consumers may also benefit from wider product choice and lower prices across selected imported goods.
Investment and Growth Opportunities
The Agreement creates a strong platform for deeper commercial engagement and long-term investment collaboration between businesses in both countries.
Potential growth sectors include:
- Infrastructure
- Renewable energy
- Agri-tech
- Advanced manufacturing
- Technology and innovation
- Logistics and supply-chain development
- Sustainable industries
The FTA also includes investment cooperation mechanisms aimed at supporting business connectivity, trade promotion, and practical commercial engagement.
India will establish a dedicated “New Zealand Investment Desk” to support New Zealand businesses and investors engaging with the Indian market.
Services, Skills and Mobility
The FTA introduces structured pathways supporting services trade, business mobility, and professional engagement.
Key areas include:
- Access across 100+ services sectors
- Enhanced opportunities in:
- Engineering services
- Education and training
- Environmental services
- Audio-visual and creative sectors
- Financial technology and digital services
- New pathways for skilled professionals
- Working holiday arrangements
- Expanded opportunities for student mobility and post-study engagement
The Agreement also includes commitments supporting business travel and temporary skilled mobility between both countries.
Sector Opportunities
For New Zealand Businesses
- Agriculture and food exports
- Forestry and timber
- Wine and premium beverages
- Education and professional services
- Tourism and hospitality
- Technology and environmental services
- Agritech and innovation
For Indian Businesses
- Textiles and apparel
- Pharmaceuticals and medical devices
- Engineering and manufacturing
- Automotive and auto components
- Processed foods and consumer goods
- Technology and digital services
Across both countries, SMEs, women-led enterprises, innovators, and export-focused businesses are expected to benefit.
Trade Facilitation and Regulatory Cooperation
The Agreement also introduces several measures aimed at improving business efficiency and reducing trade barriers.
Areas of cooperation include:
- Faster customs processes
- Digital and paperless trade systems
- Modern rules of origin
- Improved sanitary and phytosanitary cooperation
- Technical standards and regulatory collaboration
- Organics market access arrangements
- Medical devices and pharmaceutical cooperation
- Wine labelling and certification cooperation
These measures are expected to improve predictability, transparency, and ease of doing business for exporters and importers.
Economic Cooperation and Sector Collaboration
Beyond trade, the FTA promotes long-term collaboration across several strategic sectors.
Areas identified for cooperation include:
- Forestry
- Horticulture
- Fisheries and aquaculture
- Wine and beverages
- Tourism
- Education and research
- Traditional knowledge and wellness
- Innovation and technology
- Sports and creative industries
Dedicated cooperation mechanisms and working groups are expected to support practical collaboration and sector engagement over time.
Support for SMEs and Emerging Businesses
The Agreement includes dedicated provisions supporting small and medium-sized enterprises (SMEs).
This includes:
- Improved access to information
- Enhanced business engagement opportunities
- SME cooperation initiatives
- Market access support
- Business connectivity mechanisms
The FTA is expected to create new opportunities for businesses seeking to expand internationally and build long-term bilateral partnerships.
Balanced and Practical Framework
The Agreement reflects a balanced and calibrated approach.
Key features include:
- Protection of sensitive sectors where necessary
- Gradual tariff phase-ins in selected areas
- Safeguards and quota arrangements
- Policy protections retained by both governments
This approach supports sustainable long-term economic cooperation while balancing domestic priorities.
How INZCCI Supports Businesses
INZCCI provides practical support to help businesses engage with opportunities arising from the India–New Zealand FTA.
Support areas include:
- Market entry guidance
- Trade delegations and business missions
- B2B matchmaking and partner introductions
- Policy insights and market intelligence
- Stakeholder engagement support
- Sector connectivity initiatives
The Opportunity Ahead
The India–New Zealand Free Trade Agreement is more than a trade agreement.
It is a platform to:
- Expand bilateral business opportunities
- Build resilient supply chains
- Strengthen long-term economic ties
- Enhance innovation and collaboration
- Deepen people-to-people engagement
As bilateral engagement continues to grow, the Agreement is expected to play a significant role in shaping the next phase of India–New Zealand economic relations.
INZCCI looks forward to supporting businesses, institutions, and stakeholders in understanding, accessing, and benefiting from these emerging opportunities.
Get Started
Connect with INZCCI to explore opportunities and take the next step in your India–New Zealand business journey.
Explore:
- Market Opportunities
- Trade Delegations
- Business Partnerships
- Membership Opportunities
- Sector Engagement
Source references: New Zealand Ministry of Foreign Affairs and Trade (MFAT), New Zealand Trade and Enterprise (NZTE), Government of India trade and commerce publications.