India and New Zealand signed a free trade agreement on April 27

India has consistently expanded its global trade partnerships to strengthen economic growth, create jobs, and enhance its global position.

Over the past few years, nine free trade agreements (FTAs) have been signed with 38 developed countries.

The latest of these, a forward-looking FTA signed with New Zealand on April 27, 2026, will mark a historic milestone in bilateral economic relations.

It is a comprehensive framework covering aspects such as market access, agricultural productivity, investment, talent mobility, cooperation in sports and tourism, and people-to-people ties.

History of the India-New Zealand FTA

India and New Zealand announced negotiations for a free trade agreement (FTA) on March 16, 2025, and concluded it within a record nine months; making it the fastest-ever free trade agreement.

The FTA will also promote student mobility through post-study work visas and professional routes in New Zealand, with no numerical limit for Indian students.

Currently, New Zealand is India's second-largest trading partner in the Oceania region.

Highlights of the India-New Zealand FTA

The India-New Zealand FTA eliminates tariffs on 100% of India's exports.

A commitment to invest US$20 billion will strengthen long-term economic and strategic cooperation.

The agreement places special emphasis on strengthening MSMEs and women-led enterprises.

India protects its core interests in dairy and agriculture; this is a major win for labor-intensive sectors like textiles and leather.

New Zealand's best-ever offer includes commitments in 118 service sectors and 'Most-Favoured Nation' (MFN) status in 139 sectors.

For the first time, New Zealand has facilitated trade in Ayurveda, Yoga, and other traditional medicine services with India.

New Zealand has signed its first agreement with any country on student mobility and post-study work visas.

Indian students can work up to 20 hours per week during their studies, subject to future policy changes, and will also benefit from extended post-study work visas (STEM undergraduate: 3 years; postgraduate: up to 3 years; doctoral: up to 4 years).

India has granted market access to 70.03% of tariff lines, while excluding 29.97% of tariff lines; this covers 95% of New Zealand's bilateral trade. Certain products are excluded, such as dairy products (milk, cream, whey, yogurt, cheese, etc.), animal products (except lamb), and vegetable products (onions, chickpeas, peas, etc.).

New Zealand

New Zealand is an island country located in the southwestern Pacific Ocean. It consists of two mainland islands, the North Island (Te Ika-a-Māui) and the South Island (Te Waipounamu), and over 600 smaller islands.

It is the sixth-largest island nation by area and lies east of Australia, across the Tasman Sea, and south of New Caledonia, Fiji, and Tonga.

New Zealand's capital is Wellington, and its most populous city is Auckland. New Zealand's islands were the last large habitable landmass to be settled by humans. A distinctive Māori culture developed.

In 1769, British explorer Captain James Cook became the first European to land on and map New Zealand. In 1840, representatives of the United Kingdom and Māori chieftains signed the Treaty of Waitangi; this paved the way for Britain's declaration of sovereignty later that year and the establishment of the New Zealand Crown Colony in 1841.