India–New Zealand FTA Concluded: Zero-Duty Access and $20 bn FDI
Why in the news
India and New Zealand sealed a Free Trade Agreement within nine months, led by Narendra Modi and Christopher Luxon, supporting India’s trade diversification.
Key facts
- Scope: goods, services, investment, skilled mobility, MSMEs, traditional knowledge and wellness.
- Market access: 100% of Indian exports duty-free; India cuts tariffs on 95% of New Zealand’s, 57% duty-free from day one.
- FDI: $20 billion by 2030, 118 sectors, binding timelines.
| New element | Detail |
|---|---|
| Traditional medicine | Ayurveda and yoga facilitation, a first from New Zealand |
| Professionals | Easier movement for IT staff, engineers, healthcare workers, yoga instructors, chefs, music teachers |
| Students | 20 hours a week work permit; longer post-study visas |
Why India is speeding up FTAs
- Diversify away from the U.S., EU and China; India–U.S. trade of $132 bn exposed tariff risk.
- WTO-plus rules, strategic partnerships, and Make in India and PLI alignment.
- U.S. exports fell sharply in late 2025; Indo-U.S. talks stalled over agriculture.
Exam angle
- Third FTA of 2025 after the UK and Oman.
- Leaders: Modi and Luxon.