Page 37 - NIS English 16-31 May, 2026

Free Trade Agreement | INTERNATIONAL

Key Highlights of the Agreement

US $20 Billion n Products Excluded for Protection: To safeguard farmers,
the rural economy, and domestic industries, certain products
investment pledge by New Zealand have been excluded. These include dairy products, animal
in India to boost agriculture, the products (excluding sheep meat), agricultural produce
manufacturing sector, infrastructure (such as onions, chickpeas, peas, maize, almonds, etc.),
development, start-ups, innovation, sugar, artificial honey, and animal/vegetable oils. The list
and emerging technologies. comprises arms and ammunition, gems and jewelry, copper
and copper-based articles, and aluminum and aluminum-
based commodities, among others.
n New Zealand has offered its most comprehensive
market access and services package to date. Specific tariff lines will be eliminated
This will unlock high-value opportunities for immediately; these include timber, wool,
skilled professionals, start-ups, and service-based 30% mutton, leather, and raw hides, etc.
enterprises. It has granted market access in 118
service sectors, while extending Most Favored
Nation (MFN) commitments across 139 sub-sectors. n Meanwhile, tariffs on 35.6% of goods are to be phased
n 100 percent of India's exports to New Zealand will out over a period of 3, 5, 7, and 10 years; this includes
receive duty-free access. This encompasses all tariff petroleum oils, malt extracts, vegetable oils, and select
lines. Labor-intensive sectors—such as textiles, electrical and mechanical machinery, peptones, etc.
leather, footwear, engineering goods, and processed n Post-Study Work Visas in New Zealand: Student mobility
foods—will be significantly empowered. will be promoted through professional channels. There
n Consistent with the treatment accorded to New is no numerical cap. Students holding Bachelor's and
Zealand's other trading partners, Indian products Master's degrees in STEM fields will be granted post-study
will enjoy zero-duty market access from the very work rights for up to 3 years, while doctoral researchers
moment of entry; this ensures they remain fully will receive such rights for up to 4 years.
competitive within the New Zealand market and are
accorded a level playing field. A special quota of 5,000 ‘Temporary Employment
n This agreement represents a "New Generation Trade Entry Visas’ for Indian professionals.
Agreement" designed to support a "Developed
India" by 2047. Through provisions regarding n Agricultural productivity partnerships and 'Centers of
tariffs, talent mobility, investment, and agricultural Excellence' for apples, kiwifruit, and Manuka honey
productivity, it empowers the youth, farmers, to boost productivity, enhance farmers' incomes, and
women, artisans, and Small & Medium Enterprises. facilitate knowledge exchange.
n India has offered tariff liberalization on 70.03 n Protection for domestic producers will be ensured
percent of its tariff lines—covering 95 percent through agricultural productivity cooperation, as well as
of the bilateral trade value—while simultaneously through controlled market access mechanisms involving
excluding 29.97 percent of tariff lines to safeguard quotas and Minimum Import Prices.
India's sensitive sectors.
To strengthen India’s position as a reliable supplier of affordable medicines,
Recognition of provisions include zero tariffs and fast-track approvals for pharmaceuticals
Inspections and medical devices, alongside the recognition of inspections conducted by
regulatory bodies in the US, EU, UK, and Canada.

Following five formal rounds of negotiations and engagement with developed economies, aligning
several interim meetings, both sides agreed on De- with the vision of Developed India 2047. Over the
cember 22, 2025. Union Minister Piyush Goyal stated past three and a half years, India has concluded its
that the India-New Zealand FTA was finalized in just seventh FTA. In total, India has finalized nine FTAs,
nine months. This ranks as one of the fastest-con- which will encompass 38 developed economies. Col-
cluded FTA India has ever signed with a developed lectively, these agreements will cover approximately
nation. It marks a significant step in India’s growing 65 to 70 percent of the global GDP. n

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