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India, New Zealand Conclude FTA Granting Zero-Duty Access and $20 Billion Investment Pledge

The concluded text now moves to legal review before New Zealand’s Parliament, where NZ First has declared opposition.

Overview

  • All Indian exports will face zero tariffs in New Zealand, while India offers liberalisation on about 70% of tariff lines covering roughly 95% of bilateral trade.
  • Sensitive items remain excluded to protect Indian farmers and industry, including dairy products along with onions, sugar, spices and edible oils.
  • Services provisions include market access in 118 sectors with MFN in 139 sub-sectors, a 5,000-visa Temporary Employment Entry pathway and extended post-study work rights for students.
  • New Zealand pledges $20 billion in FDI into India over 15 years, with a rebalancing mechanism allowing India to suspend benefits if investment targets are not met.
  • Talks wrapped in nine months, with signing expected after legal scrubbing and implementation contingent on New Zealand’s parliamentary approval, as both sides aim to double trade to about $5 billion within five years.