India-New Zealand trade deal finalised: Which sectors are set to gain?

India and New Zealand have finalised a Free Trade Agreement (FTA), marking one of India’s fastest-concluded trade deals with a developed economy. Negotiated over nine months and expected to be signed within three months, the agreement is slated for implementation next year.

 

The deal includes sweeping tariff cuts, expanded services access, enhanced labour mobility and a long-term investment commitment.

 

Here's a look at how different sectors will benefit from the India-New Zealand free trade agreement.

Manufacturing

Under the agreement, all Indian exports to New Zealand will be exempt from any tariffs. This will significantly boost the competitiveness of India’s labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.

 

 

These duty-free exports will benefit Indian manufacturers, including micro, small & medium enterprises (MSMEs), artisans, women, and youth. Meanwhile, India has offered tariff liberalisation on 70 per cent of tariff lines, covering 95 per cent of bilateral trade with New Zealand.

 

The deal also ensures duty-free access to industrial products such as wooden logs, coking coal, and metal waste and scrap, which will help lower costs for India’s manufacturing sector.

Services

India's services sector is set to greatly benefit from the deal as it opens access to 118 fields. Under the deal, New Zealand will offer 1,667 three-year skilled work visas annually for Indian professionals in sectors facing shortages, including healthcare, education and engineering. This is expected to generate high-skill employment and strengthen India’s global services exports.

 

In addition, a Temporary Employment Entry Visa pathway with a quota of 5,000 professionals will cover occupations such as IT specialists, engineers, healthcare workers, yoga instructors, chefs and music teachers. The deal also provides 1,000 work and holiday visas.

 

Student mobility is also likely to get a boost, with post-study work rights of up to three years for STEM graduates and up to four years for doctoral scholars.

Agriculture

To increase agricultural cooperation, New Zealand will establish Centres of Excellence for apples, kiwifruit and honey, supporting technology transfer, research collaboration and farmer income growth.

 

Market access for these products will remain restricted through quotas and minimum import prices, while sensitive items such as dairy, coffee, sugar, spices, edible oils and rubber are excluded to protect Indian farmers.

Pharma

The trade deal will help India’s pharma and medical device companies by making approvals faster. New Zealand will accept inspection and approval reports from trusted global regulators such as the US FDA, Europe’s EMA and the UK regulator. Under the deal, Indian companies will not need repeated inspections, reducing costs and helping medicines and medical devices reach the New Zealand market more quickly.

 

The agreement also includes cooperation in areas such as Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy (AYUSH), which will help promote India’s traditional medicine systems globally, boost medical tourism, and strengthen the country's image as a global wellness hub.

 

Apart from this, New Zealand has also committed to facilitating $20 billion in investments into India over the next 15 years, supporting manufacturing, infrastructure, services and innovation under the Make in India programme.

 

Bilateral trade between the two countries stood at $1.3 billion in 2024–25, while total trade in goods and services reached $2.4 billion, led by travel, IT and business services.