India, April 27 -- The Government of India has issued a release:
Investment and Economic Co-operation
Sector
India's Exports
Tariff Coverage
Impact & Opportunity
Agriculture
India's global exports stood at USD 51.8 billion in 2024-25, up from USD 48.3 billion in 2023-24, 7.3% growth.
Elimination of tariffs at peak 5%
Primary & Semi-Processed Vegetables: Dried onions, preserved vegetables, semi-processed inputs enhance access for fresh produce and horticultural exports.
Marine
India's global exports stood atUSD 7.0 billion in FY25, up from USD 6.8 billion in FY24.
Zero-duty access under the FTA supports higher market access and export growth.
Textiles & Clothing
India's global exports stood atUSD 36.9 billion in 2024-25, up from
New Zealand's imports of textiles and clothing from the world averaged USD 2.2 billion annually.
Engineering Sector
India's global exports stood atUSD153.4 billion in FY2024-25.
New Zealand's engineering imports from the world averaged USD 23.3 billion.
Leather
India's global exports stood atUSD 3.08 billion in 2024-25
The move benefits leather manufacturers and artisans across key producing states, with opportunities for MSMEs and women workers engaged in the sector.
Footwear
India's global exports stood atUSD 2.5 billion in 2024-25
Pre-FTA peak tariffs up to 10%, now reduced to zero
The tariff removal is expected to significantly improve price competitiveness and boost demand in the price-sensitive New Zealand market.
Sports Goods
India's global exports stood atUSD 571 million in 2024-25
Pre-FTA tariffs up to 5%, now reduced to zero
The Agreement is expected to benefit sports goods manufacturers and workers, particularly in established production clusters.
Pharmaceuticals
India's global exports stood at USD 24.5 billion in 2024-25, up from USD 22.1 billion in 2023-24, 10.8% growth.
New Zealand's pharmaceutical imports from the world averaged USD 1.4 billion in the last three years.
Plastic &Articles thereof
India's global exports stood at USD 8.16 billion in FY25.
Pre-FTA average duty up to 5%, now eliminated.
The agreement is expected to support greater penetration of Indian exports, especially in cost-competitive and customised product segments.
Gems & Jewellery
India's global exports stood at USD 29.96 billion in FY25.
Pre-FTA tariff up to 5%, now reduced to zero.
The FTA eliminates these duties, enhancing price competitiveness, particularly in finished and semi-finished jewellery segments.
Electronics and Electrical Machinery
India's global exports stood at USD 77.53 billion in FY25.
Pre-FTA tariff up to 5%, now reduced to zero, covering all tariff lines, including those currently facing non-zero duties.
The FTA is expected to create employment opportunities across electronics and electrical manufacturing clusters.
Chemical and Allied Products
India's global exports stood at USD 64.04 billion in FY25.
Pre-FTA tariff up to 5%, now reduced to zero.
The FTA supports diversification into higher value-added segments such as specialty chemicals, organic intermediates, and advanced formulations.
State
Key Benefiting Sectors
Nature of Expected Benefit from New Zealand Market Access
Gujarat
Petroleum products, Chemicals, Plastics, Gems &Jewellery
Boost bulk exports from Jamnagar, Dahej, Surat; improved margins and diversification into high-value chemicals and finished jewellery.
Maharashtra
Pharmaceuticals, Auto components, Processed food, Chemicals
Zero tariffs to enhance exports from Mumbai, Pune, Nashik; stronger integration into global value chains and boost to generics & automotive sectors
Punjab
Basmati rice, Processed food, Sports goods, Hand tools
Removal of 5-10% tariffs to expand agri-based exports and MSMEs (Jalandhar); boost to premium food exports and rural employment
Haryana
Automobiles, Auto components, Basmati rice
Improved competitiveness (2-4% tariffs removed); benefits to Gurugram and Manesar auto cluster and agri-manufacturing linkages
Uttar Pradesh
Leather goods, Carpets, Handicrafts
High tariff removal (6-10%) to boost exports from Kanpur, Moradabad, Bhadohi; strong gains for MSMEs and artisan-based sectors
Tamil Nadu
Textiles, Apparel, Leather, Auto components
Major gains from removal of 8-10% tariffs; expansion of Tiruppur and Coimbatore textile cluster; improved global competitiveness
Delhi (NCT)
Machinery, Electrical goods, Chemicals
MSMEs to benefit from tariff elimination (2-4%); strengthened regional value chains across NCR (Noida, Gurugram, Faridabad)
Karnataka
Pharmaceuticals, Coffee, Electronics, Machinery
Boost to agri + high-tech exports; zero tariffs improve competitiveness of coffee and Bengaluru-based electronics exports
West Bengal
Tea, Engineering goods, Machinery
Higher export realisation for Darjeeling tea; MSME engineering clusters to benefit from tariff removal (2-6%)
Madhya Pradesh
Oilseeds, Processed food, Metal products
Improved value addition and export realisation; stronger agro-processing and rural income gains
Andhra Pradesh
Marine products, Fruits, Pharma
Significant boost to shrimp & seafood exports; higher value realisation for processed marine products and pharma
Rajasthan
Gems &Jewellery, Textiles, Stone products
Export growth from Jaipur clusters; improved competitiveness in niche global markets due to tariff removal
Telangana
Pharmaceuticals, Chemicals, Turmeric
Strengthening of Hyderabad pharma hub; enhanced global supply chain integration and agri-export diversification
Kerala
Spices, Marine products, Coir, Processed food
Higher demand for pepper, cardamom; boost to value-added spice exports and coastal livelihoods
Goa
Marine products, Cashew, Minerals
Expansion into premium export markets; improved value addition in seafood and cashew processing
Bihar
Agro-based products (rice, maize, makhana, litchi), Textiles (Bhagalpuri silk), Leather & footwear, Handicrafts (Madhubani paintings), Processed food
Reduction in tariffs can boost exports of niche agri-products like makhana and litchi, along with value-added processed foods; expansion of Bhagalpur silk and Madhubani art into premium international markets; improved income for MSMEs and rural artisans; stronger agro-processing ecosystem and diversification of export basket.
Odisha
Marine products, Metals (aluminium, steel)
Better margins in metal exports; support for coastal livelihoods and downstream processing
Himachal Pradesh
Pharmaceuticals, Woollen
Boost to Baddi, Nalagarh , Solan pharma cluster and traditional wool-based products in Kullu and Kinnaur; improved export competitiveness
Chhattisgarh
Iron & steel products
Enhanced export viability and value addition in metal industries
Uttarakhand
Pharmaceuticals, Plastics, Machinery
Growth in industrial clusters (Haridwar, Dehradun); improved export competitiveness
Jharkhand
Iron & steel, Copper products
Stronger integration into global metal value chains
Puducherry
Pharmaceuticals, Rubber products
MSME manufacturing to benefit from improved market access and export scaling
Chandigarh
Machinery, Tools
Boost to MSME engineering exports and niche manufacturing value chains
Jammu & Kashmir
Handicrafts, Saffron, Horticulture
Enhanced global visibility and exports of carpets, apples, walnuts; support to rural livelihoods
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim
Tea, Bamboo products, Organic agriculture, Spices
Improved access for niche and GI products; gradual integration into global markets and rural development
FDI Commitment: New Zealand will invest USD 20 billion in India, strengthening long-term economic ties.
Oils, Fats & Niche Products: Edible oils, confectionery, ice cream, protein products, animal feed supports exports of niche, premium, and value-added agri-products.
USD 34.8 billion in 2023-24, 6.1% growth.
Pre-FTA average duty peaks up to 10%, now eliminated.
Pre-FTA peak tariffs up to 10%, now reduced to zero, covering both intermediate and finished products.
Pre-FTA peaks up to 5%, now reduced to zero.
The FTA streamlines access for pharmaceuticals and medical devices by enabling acceptance of GMP and GCP inspection reports from comparable regulators.
The FTA is expected to benefit jewellery manufacturers and artisans, particularly in established production hubs.
Joint strategies to promote investment, research and innovation, technology flows, and skill development, particularly in renewable energy, digital services, and modern infrastructure, are fully covered.
Cereals: improves the global competitiveness of Indian grain exports.
Exports to New Zealand rose from USD 15.35 million to USD 15.89 million in the same period.
Pre-FTA peaks up to 5%, now reduced to zero
The Agreement is expected to benefit fishing communities and marine product exporters, with coastal states well-positioned to gain.
Pre-FTA peak tariffs were up to 10%, now fully eliminated, to ensure Zero-duty market access
The sector is expected to generate significant employment across women workers and MSME units. They are expected to benefit from the expanded market access.
Exports to New Zealandwas USD 136.34 millionin FY 2024-25,
Tariff removal will enhance price competitiveness and expand market access for Indian exporters.
Exports to New Zealand stood at USD 6.23 million in 2024-25
Exports to New Zealand stood at USD 2.28 million in 2024-25
Exports to New Zealand stood at USD 4.2 million in 2024-25
Exports to New Zealand stands at USD 57.51 million in 2024-25.
These will reduce duplicative inspections, lower compliance costs, and expedite product approvals.
Exports to New Zealand stands at USD 13.48 million during the same period.
Exports to New Zealand remain at USD 16.91 million during the same period.
Exports to New Zealand remain at USD 68.26 million during the same period.
Exports to New Zealand remain at USD 95.79 million during the same period.
A Rebalancing Clause is incorporated into the Agreement to provide a framework for addressing any shortfall in investment delivery, thereby ensuring robust and tangible economic outcomes.
Exports to New Zealand rose from USD 95.62 million in FY 2023-24 to USD 108.21 million in FY 2024-25.
Processed Foods: benefits exports of ready-to-eat and processed food products, strengthening India's food processing sector.
Exports to New Zealand rose from USD 98.14 million to USD 103.14 million for the same period.
Organic Primary Products: Mutual Recognition Arrangement between the two sides will be delivered in this agreement. Organic products which are expected to gain traction include Basmati rice, Flax seeds, Arabica Cherry AB, Psyllium husk (Isabgol), Soyabean oil cake, Organic Black Tea etc.
FTA is expected to strengthen shrimp exports while enabling diversification into a broader range of seafood products.
FTA is expected to create jobs across manufacturing clusters and make Indian engineering goods more competitively priced.
Technical Assistance: Cooperation has been agreed in AYUSH, audio visual industries, tourism, sports and traditional knowledge systems. The FTA promotes India's AYUSH systems internationally, encourages medical value travel, and positions India as a global wellness hub.
Key Takeaways
Introduction
India has steadily expanded its global trade partnerships to strengthen economic growth, create jobs, and enhance its global standing. In the past few years 9 Free Trade Agreements have been signed spanning 38 developed countries. The latest is a forward-looking FTA signed with New Zealand today, marking a historic milestone in bilateral economic relations. It is a comprehensive framework encompassing market access, agricultural productivity, investment, talent mobility, collaboration in sports, tourism, and people-to-people ties. The FTA is designed to benefit manufacturers, farmers, MSMEs, women entrepreneurs, students, and skilled professionals across both nations.
India and New Zealand announced negotiations for a Free Trade Agreement (FTA)on 16 March 2025and concluded in a record 9 months, making this the fastest concluded free trade agreement. The signing of FTA enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets. The agreement opens opportunities for India to emerge as a key supplier of skilled workforce, alongside prospects for future cooperation in areas such as AYUSH and services such as Yoga Instructors, Indian Chefs, and Music Teachers, and services under sector of interests like IT, Engineering, Healthcare, Education, and Construction.
India - New Zealand: Bilateral Trade Ties
India's partnership with New Zealand is shaped by both economic realities and strong people-to-people ties. Currently, New Zealand is India's second-largest trading partner in Oceania.
At USD 49,380, New Zealand is among the higher-income economies in Oceania. In 2024, New Zealand's imports stood at USD 47 billion, while exports were USD 42 billion. New Zealand invests nearly 8% of its GDP annually overseas, with total overseas investment valued at USD 422.6 billion as of March 2025.
Around 300,000 persons of Indian origin and NRIs live in New Zealand, making up nearly 5% of its population. This diaspora acts as a cultural and economic bridge, supporting stronger bilateral ties and demand for Indian goods and services.
This FTA builds on the socio-economic foundation aimed at creating new opportunities.
Salient Features of the FTA
Enhanced Market Access for Indian Goods
Gains to India from FTA
Gains for Agriculture, Technology Cooperation, and Farmer Income Growth
Enhanced Opportunities Beyond Goods
Services
Mobility & Education
Cultural & Traditional Knowledge
Regulatory & Institutional Provisions
Sectoral Highlights
The India-New Zealand FTA secures duty free or preferential access across a wide range of sectors. These gains are expected to boost India's exports, create jobs, and strengthen the competitiveness of Indian industries in the Oceania region.
State Wise Gains Under India-New Zealand FTA
Conclusion
The India-New Zealand Free Trade Agreement reflects a defining moment in India's trade diplomacy, opening new avenues for comprehensive economic cooperation. By securing improved market access for Indian goods, expanding opportunities in services and mobility, and deepening collaboration in agriculture, investment and emerging sectors, the Agreement delivers tangible and wide-ranging benefits across the economy.
From farmers and MSMEs to students and skilled professionals, the gains from this Agreement are expected to be broad-based, reinforcing India's position as a trusted, forward-looking global partner and advancing the vision of a globally integrated Viksit Bharat 2047.
References
Ministry of Commerce and Industry
https://www.pib.gov.in/PressReleasePage.aspx?PRID2207300&lang2(R)3
https://www.pib.gov.in/PressReleasePage.aspx?PRID2255739(R)3&lang1
https://www.pib.gov.in/PressReleasePage.aspx?PRID2236134(R)3&lang1
International Trade Administration
https://www.trade.gov/free-trade-agreement-overview
PIB Achieves
https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId3&NoteId156654&lang2(R)3
Click here to see pdf
PIB Research
Disclaimer: Curated by HT Syndication.
