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India, New Zealand conclude trade talks

WHY IN NEWS ? 

 India and New Zealand on Monday concluded discussions on a free trade agreement (FTA) that will give 

• India tariff-free access to the island nation’s markets, 
• 
  
• bring in $20 billion in investments over 15 years, 
• 
  
•  help double bilateral trade to $5 billion in the next five years.

India-New Zealand Bilateral Ties

Early Contacts: Indian immigrants settled in New Zealand in late 18th century.

Wartime Linkages: Indian soldiers fought alongside Australian and New Zealand Army Corps (ANZAC) forces in Gallipoli (1915) during World War 1.

Diplomatic Relations: India established a Trade Commission in Wellington in 1950, upgraded to a High Commission later.

Common Platforms: Both countries are members of the Commonwealth, support democratic governance, disarmament, and ecological preservation.

Diaspora Factor: Over 2,50,000 Indian-origin people live in New Zealand, acting as a strong cultural and economic bridge.

 cut tariffs on 95% 

The deal will remove or cut tariffs on 95% of New Zealand’s exports — from timber to fruits — to India, 

Delhi safeguarded the interests 

of its 

• agricultural and 
• dairy farmers, 

made no concessions on - 

import of 

• dairy, 
• onions, 
• sugar, 
• spices, 
• edible oils, 
• and rubber. 

 temporary employment visas  

New Zealand will give temporary employment visas for Indian professionals in skilled jobs with a quota of 5,000 visas annually and a stay of up to three years.

FTA, to be signed in the first half of 2026

 Prime Minister Narendra Modi said, “Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries.”

‘FTA will boost ties’

“The FTA would significantly 

• deepen bilateral economic engagement, 
• enhance market access, 
• promote investment flows, 
• strengthen strategic cooperation between the two countries, 
• and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youths of both countries across various sectors,” the External Affairs Ministry said.

“

FOR NEWZEALAND - The FTA reduces or removes tariffs 

on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades

REASON FOR THIS 

The pact will help Indian exporters, reeling under the impact of 50% tariffs imposed by the Trump administration on Indian goods, diversify shipments in the Oceania region. India has already implemented a trade pact with Australia.

The Minister said the agreement will provide a fillip to labour-intensive sectors such as apparel, leather, textiles, rubber, footwear and home decor. It will encourage export of automobiles, auto components, machinery, electronic goods and electrical and pharmaceuticals, he said.

The temporary employment visas 

'cover AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade.

trong focus on services and mobility. 

New Zealand has offered its most ambitious services package so far, covering 118 services sectors and MFN treatment in 139 sub-sectors, including IT, professional services, education, telecom, tourism and construction. India has also offered market access in over 100 services sectors.

Products not covered

Under the pact, New Zealand will get duty-free access to goods such as 

• sheep meat, 
• wool, 
• coal 
• over 95% of forestry and wood articles. I

t will get duty concessions on a number of other items such as 

• kiwi fruit, 
• wine, 
• some seafood, 
• cherries, 
• avocados, 
• persimmons, 
• bulk infant formula, 
• Manuka honey and milk albumins.

But the deal does not cover- 

vegetable products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, arms and ammunition, gems and jewellery, copper and its products, and aluminium and articles.

The FTA is expected to make it easier 

for New Zealand companies to sell goods and services in India, home to the world’s largest population and an economy projected to be worth about $7 trillion by 2030. 

Trade between the two countries has grown steadily over the years. In FY21, India’s exports to New Zealand stood at $486.2 million, while imports were valued at $381.5 million. By FY26*, exports are projected to reach $343.5 million, while imports are expected to rise to $356.9 million.