India–New Zealand FTA to Ensure Zero Duty on 100% of India’s Exports: Piyush Goyal

New Delhi: Commerce and Industry Minister Piyush Goyal on Monday said the India–New Zealand Free Trade Agreement (FTA) will ensure zero customs duty on 100 per cent of India’s exports, delivering wide-ranging benefits to farmers, MSMEs, workers, artisans, women-led enterprises and youth, while creating major opportunities for labour-intensive sectors such as textiles, apparel, leather and footwear.

The agreement is also expected to significantly benefit sectors including engineering and manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals and chemicals.

Highlighting the investment dimension of the pact, Goyal said the FTA provides a strong boost to bilateral investments, with New Zealand committing to facilitate $20 billion in foreign direct investment into India over the next 15 years. The investment focus areas include manufacturing, infrastructure, services, innovation and job creation.

“Under the guidance and leadership of Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, and with close and collaborative engagement with my counterpart Minister Todd McClay, India and New Zealand have successfully concluded a landmark Free Trade Agreement in a record nine months. This is a significant milestone in our bilateral relationship,” Goyal said in a post on X.

The minister noted that the FTA places strong emphasis on empowering farmers by opening new market opportunities for Indian agricultural products in New Zealand, including fruits, vegetables, coffee, spices, cereals and processed foods. Through initiatives such as the Agricultural Productivity Partnership, Centres of Excellence and access to New Zealand’s advanced agri-technologies, Indian farmers are expected to benefit from higher productivity, improved quality and enhanced incomes. Special focus on horticultural products such as honey, kiwifruit and apples will further support sustainable growth.

At the same time, Goyal stressed that India has protected its domestic interests by safeguarding sensitive agricultural and allied sectors. Products such as dairy, sugar, coffee, spices, edible oils, precious metals including gold and silver, precious-metal scrap, copper cathodes and rubber-based products have been excluded, ensuring protection for farmers, MSMEs and domestic industries.

The FTA also opens significant opportunities for India’s services sector across IT and ITeS, finance, education, tourism, construction and related areas. New Zealand’s first-ever annexes on health, traditional medicine, student mobility and post-study work create new avenues for Indian professionals and students. Enhanced mobility provisions, including working holiday visas, post-study work pathways and a dedicated quota of 5,000 temporary employment visas for skilled Indian professionals, will further strengthen global employment opportunities.

“This mutually beneficial agreement will deepen the India–New Zealand economic partnership and support India’s journey towards the vision of Viksit Bharat 2047,” Goyal added.

According to a Commerce Ministry statement, the agreement offers New Zealand’s most comprehensive market access package ever extended to India, covering 118 services sectors such as computer-related services, professional services, audiovisual services, telecommunications, construction, tourism and travel-related services. It also includes Most-Favoured Nation commitments in around 139 sub-sectors.

The FTA introduces a new Temporary Employment Entry Visa pathway for skilled Indian professionals, allowing up to 5,000 visas at any given time with a stay of up to three years. Eligible professions include Ayush practitioners, yoga instructors, Indian chefs and music teachers, along with professionals from high-demand sectors such as IT, engineering, healthcare, education and construction.

Beyond tariff liberalisation, the agreement addresses non-tariff barriers through enhanced regulatory cooperation, greater transparency, streamlined customs procedures, and improved Sanitary and Phyto-Sanitary (SPS) measures and Technical Barriers to Trade disciplines. These provisions aim to ensure that tariff concessions translate into effective and meaningful market access for Indian exports.

Welcoming the agreement, New Zealand Prime Minister Christopher Luxon said, “We’ve concluded a Free Trade Agreement with India. This will open doors for New Zealand farmers, growers and businesses—boosting exports, creating jobs and lifting incomes to help all Kiwis get ahead.”

—With inputs from IANS