Indian Economy News

India and New Zealand sign a landmark Free Trade Agreement to boost trade and investment ties

India and New Zealand signed a landmark Free Trade Agreement (FTA) on April 27, 2026, marking a major milestone in strengthening bilateral economic relations. The agreement, signed by Union Minister for Commerce and Industry, Mr. Piyush Goyal, and New Zealand Minister for Trade and Investment, Mr. Todd McClay, provides duty-free access to 100% of Indian exports to New Zealand, significantly enhancing market access for key sectors such as textiles, pharmaceuticals and engineering goods. The FTA also aims to double bilateral trade to Rs. 46,220 crore (US$ 5 billion) within five years, while promoting services trade, professional mobility and cross-sector collaboration. The agreement is expected to reduce tariff barriers, improve ease of doing business and create new opportunities for Indian exporters across manufacturing and services sectors.

The agreement includes a commitment by New Zealand to invest Rs. 18.49 lakh crore (US$ 20 billion) in India over 15 years, strengthening long-term economic cooperation and boosting capital inflows. Additionally, provisions such as streamlined visa pathways, including around 5,000 annual work visas, are expected to facilitate talent mobility and deepen people-to-people ties. While ensuring broader market access, the pact also safeguards sensitive sectors such as dairy and agriculture, reflecting a balanced approach to trade liberalisation. The FTA is also expected to encourage joint ventures, technology transfer and supply chain integration between the two countries. Overall, the agreement is poised to enhance export competitiveness, attract investments and strengthen India’s integration into global value chains, particularly within the Indo-Pacific region, supporting sustained economic growth and diversification of trade partnerships.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.