India and New Zealand are set to formalise a significant Free Trade Agreement (FTA) on April 27 in New Delhi, a pact designed to boost bilateral trade to $5 billion and attract $20 billion in investment over the next 15 years, while also opening new avenues for professional mobility.
Key Points
- India and New Zealand will formally sign a Free Trade Agreement (FTA) on April 27 in New Delhi, following the conclusion of negotiations last December.
- The FTA aims to double bilateral trade to $5 billion within the next five years and attract $20 billion in investment over 15 years.
- India will gain zero-duty market access for 100 per cent of its exports to New Zealand, while New Zealand will see tariffs eliminated or reduced on 95 per cent of its exports to India, excluding sensitive dairy products, onions, sugar, spices, edible oils, and rubber.
- New Zealand will offer a temporary employment entry visa pathway for 5,000 Indian professionals annually, allowing stays of up to three years.
- Bilateral merchandise trade stood at $1.3 billion in 2024-25, with total goods and services trade reaching approximately $2.4 billion in 2024.
India and New Zealand will sign a free trade agreement (FTA) on April 27 here, an official said on Thursday.
The free trade pact aims to provide tariff-free access to the island nation's market for domestic exporters' goods and will bring in $20 billion in investment over the next 15 years.
Boosting Bilateral Trade and Investment
The two countries on December 22 last year announced the conclusion of negotiations for the trade deal which aims at doubling bilateral trade to $5 billion in the next five years.
The official said that the pact will be signed on April 27 in Bharat Mandapam after a meeting of the India-New Zealand Business Forum.
Market Access and Tariff Concessions
While India will get zero-duty market access on 100 per cent of its exports, the agreement will eliminate or reduce tariffs on 95 per cent of New Zealand's exports to India, including items ranging from wool, coal, wood, wine, to avocados and blueberries.
However, New Delhi has made no duty concessions on imports of dairy products like milk, cream, whey, yoghurt, and cheese; onions, sugar, spices, edible oils, and rubber to protect farmers and the domestic industry.
Under the pact, New Zealand will also get duty-free access to goods such as sheep meat, wool, coal and over 95 per cent of forestry and wood articles.
Opportunities for Indian Professionals
As regards the services sector, New Zealand will give a temporary employment entry visa pathway for Indian professionals in skilled occupations with a quota of 5,000 visas annually and a stay of up to three years.
Bilateral merchandise trade stood at $1.3 billion in 2024-25. The total trade in goods and services reached about $2.4 billion in 2024, with services trade alone reaching $1.24 billion, led by travel, IT, and business services.
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