The mango that broke a market
It is peak mango season in India. The Alphonso harvest is at its richest, the Kesar at its most fragrant.
India and New Zealand have concluded talks on a Free Trade Agreement, it was announced on Monday. The Indian government described the proposed trade agreement as comprehensive, balanced and forward-looking, and a step forward in India’s engagement with the Indo-Pacific region.
Prime Minister Narendra Modi spoke to his New Zealand counterpart Christopher Luxon on the successful conclusion of the FTA talks, a government statement said.
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PM Luxon said the free trade deal will reduce or remove tariffs on 95 per cent of New Zealand’s exports to India.
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“It’s forecast that New Zealand exports to India could increase USD 1.1 billion to USD 1.3 billion per year over the coming two decades. Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard-working New Zealanders. The agreement builds on the strong friendship between our two countries,” he stated.
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Fastest FTA
The FTA with New Zealand has been concluded in record time, with the first negotiations having started only in March this year. The first meeting to discuss the FTA was held on March 16 this year between Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.
The India-New Zealand FTA will facilitate a “high-quality economic partnership with an aim to promote employment, enable skill mobility, drive trade and investment-led growth, foster innovation for agricultural productivity, and enhance MSME participation to strengthen long-term economic resilience.”
An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment!
My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement.…
— Narendra Modi (@narendramodi) December 22, 2025
The FTA will provide for the elimination of tariffs on 100 per cent of its tariff lines, and facilitate duty-free access for all Indian exports. The sectors likely to benefit from the India and New Zealand trade deal include textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
Further, IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services will also see greater access under the agreement.
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How India benefits
A government release said under the trade deal, New Zealand has agreed to its best and most ambitious services offer compared to any of the other trade deals it has signed before.
Goyal said on the conclusion of the deal: “Today, this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage.”
The FTA will further help India supply skilled and semi-skilled talent to New Zealand, and enable improved entry and stay provisions for Indian professionals, students and youth, including work opportunities during studies, post-study work pathways, dedicated visa arrangements and a Working Holiday visa framework.
Skilled Employment Visa
The two countries have also agreed to launch Skilled Employment Pathways through a new Temporary Employment Entry Visa for Indian professionals in skilled occupations. There will be a quota of 5,000 visas at any given time and a stay of up to three years will be permitted under the same. Indian professionals including AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as those in high-demand sectors such as IT, engineering, healthcare, education, and construction, will be able to avail of this visa facility.
It may be noted that New Zealand has agreed to facilitate investments of USD 20 billion into India over the next 15 years, in manufacturing, infrastructure, services, innovation and employment, under India’s Make in India vision.
NEWS: 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. pic.x.com/MZZqYkXs0I
— Christopher Luxon (@chrisluxonmp) December 22, 2025
It may further be recalled that the India–New Zealand total trade in goods and services stood at approximately USD 2.4 billion in 2024, with services trade pegged at USD 1.24 billion.
The India-New Zealand FTA is the third such bilateral trade agreement concluded this year by the Modi government.
It is also the seventh FTA in the last few years, with the earlier ones being signed with Oman, the UK, European Free Trade Association (EFTA) countries, the UAE, Australia and Mauritius.
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